Stamp duty query.

northernirelandgirl

I am moving house (main residence) and have purchased another to use as my main residence. At present and for the foreseeable future I cannot sell the first house as my spouse and I are undergoing divorce and they are remaining in the marital home with the children. Due to severe illness my ex is unable to work and I am remaining on the deeds as they where unable to secure the mortgage of there own. For stamp duty purposes how does this affect me. I thought I would pay the 3 percent for owning another property then the estate agent said I could pay the stamp duty on the marital home as this one costs less. I know they can lie so I didnt take it as concrete but just wondered is there any advice for someone in my circumstances. 

SDLT_Geek

You will find the information here helpful. https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09797   If you can get a "property adjustment order" in place in favour of your spouse before you complete the purchase then you should not have to pay the extra 3% SDLT.

AdrianC

SDLT is only payable on purchase.

You own one house now.
You are buying a second house. You pay +3% on that purchase.

However, I believe there may be an exemption as you no have no beneficial interest in your ex's home... @SDLT_Geek will be able to confirm.

Edit: I've just noticed your username - are you buying in NI?

[Deleted User]

northernirelandgirl said:

I am moving house (main residence) and have purchased another to use as my main residence. At present and for the foreseeable future I cannot sell the first house as my spouse and I are undergoing divorce and they are remaining in the marital home with the children. Due to severe illness my ex is unable to work and I am remaining on the deeds as they where unable to secure the mortgage of there own. For stamp duty purposes how does this affect me. I thought I would pay the 3 percent for owning another property then the estate agent said I could pay the stamp duty on the marital home as this one costs less. I know they can lie so I didnt take it as concrete but just wondered is there any advice for someone in my circumstances. 

The estate agent is an effing moron and should be ignored on matters of SDLT.  @SDLT_Geek on the other hand knows his (or her) onions.

northernirelandgirl

Yes Northern ireland. Thought Estate agent was full of 💩 💩 

SDLT_Geek

northernirelandgirl said:

Yes Northern ireland.

The SDLT rules are the same in Northern Ireland as for England, so it is relevant to know whether there will be a "property adjustment order" in place for the former matrimonial home before your purchase completes.

northernirelandgirl

No there is no formal property order. My ex and I are on good terms and since we have children together I wouldnt see them stuck without a roof over there head. 

northernirelandgirl

Just wanting to bump to see if anyone can add advise if there isn't a property order in place? Thanks @SDLT_Geek

SDLT_Geek

Am I right in thinking that you presently have just one property interest, in the former marital home?  There is not another property you have been living in, which you are selling?
Also, am I right in thinking that you have an underlying beneficial share in the marital home, which is worth £40,000 or more?  (The value of that share has to be worked out on the total value of the property without taking off the amount of any mortgage.)

If I am right in these assumptions, then the extra 3% SDLT will apply to your purchase unless there is a property adjustment order in place by the time of your purchase.  Given that you are going through a divorce and agree to your spouse staying in the property, then you could look into getting the property adjustment order into place.  It could benefit both parties.
To escape the 3% surcharge you should also keep evidence that you and your spouse are separated in circumstances likely to be permanent.

saajan_12

Can you exit your legal & beneficial interest in the marital home by 
-  getting a joint borrower, sole proprietor mortgage; or
-  borrowing more on your new property and making a private loan to ex (if you have enough equity)
Both ways, you have no benefit from capital appreciation etc, your only involvement in the marital property becomes a fixed loan. The other issue is until the divorce, between you you'd have 2 properties. I think there's an consideration for if you're sufficiently separated, but SDLT_Geek probably knows more.