Adding partner to the mortgage and title deed

Fcpool

Looking for advice. I bought my house in 2016, my partner wasn’t working at the time so putting her on the mortgagemeant the bank wouldn’t lend due to her not having a income. So I bought it in my own name.

my partner now works and we are wanting to put a extensions on the house. My partner has cash to pay for this extension but quite rightly wants to be joint owner of the house when she is investing a large amount of money into it.

we are wanting to take a small amount out of the mortgage, so we plan on remortgaging and adding her to the title.

we have spoke to the mortgage company and they have given us a mortgage in principle based on lending us the extra amount and adding my partner to the mortgage.

the mortgage company has put us onto a solicitor and they have sent us a quote for doing the work. Their fees + other taxes that are due seem to be a lot when they are all added up.

we are in Scotland so will we have to pay Land building transaction tax again? There is mention of it in the letter but doesn’t make it totally clear.

the other charges are for
legal fee £318
advanced notice registration dues £40
registration dues (not known at this time, will advise ones offer of loan is received.)
title indemnity policy £63.60
plans report £102
LBTT/ads fee (if applicable) £75 + vat

can anybody tell me what the above charges are for and if we will need to pay the LBTT again at the original rate?

many thanks 

K_S

@fcpool You're doing what's called a transfer-of-equity and presumably the £300 legal fee is for the work involved in that. That seems pretty reasonable tbh. 

Some of the smaller items look like disbursements you'd get when changing lenders. Do the solicitors know that you're staying with the current lender?

LBTT - this worked example might help answer your question but I'm thrown by the last paragraph https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/worked-examples-additional-dwelling-supplement/examples-determining-chargeable-consideration-ads/individual-acquiring-half-share-dwelling-assuming

Fcpool

K_S said:

@fcpool You're doing what's called a transfer-of-equity and presumably the £300 legal fee is for the work involved in that. That seems pretty reasonable tbh. 

Some of the smaller items look like disbursements you'd get when changing lenders. Do the solicitors know that you're staying with the current lender?

LBTT - this worked example might help answer your question but I'm thrown by the last paragraph https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/worked-examples-additional-dwelling-supplement/examples-determining-chargeable-consideration-ads/individual-acquiring-half-share-dwelling-assuming

Thanks for your reply. I’m not sure if they know we are staying with our existing lender or not. I will check. The mortgage company put us in touch with the solicitor so I assume they would have told the, but they didn’t know my partner wasn’t currently on the mortgage so they’ve obviously not passed them all the information.

so am I right in saying with regards to the LBBT my partner would only have to pay 50% of the remaining mortgage, this will be below the £145000 0% so ewe shouldn’t have to pay anything?

K_S

Fcpool said:

K_S said:

@fcpool You're doing what's called a transfer-of-equity and presumably the £300 legal fee is for the work involved in that. That seems pretty reasonable tbh. 

Some of the smaller items look like disbursements you'd get when changing lenders. Do the solicitors know that you're staying with the current lender?

LBTT - this worked example might help answer your question but I'm thrown by the last paragraph https://revenue.scot/taxes/land-buildings-transaction-tax/lbtt-legislation-guidance/worked-examples-additional-dwelling-supplement/examples-determining-chargeable-consideration-ads/individual-acquiring-half-share-dwelling-assuming

so am I right in saying with regards to the LBBT my partner would only have to pay 50% of the remaining mortgage, this will be below the £145000 0% so ewe shouldn’t have to pay anything?

@fcpool I'm not sure tbh. I'm not entirely clear what the last paragraph in the example is trying to say.

If Holly had agreed to be jointly and severally liable along with Ben for the whole of the mortgage then the chargeable consideration would be the whole amount of the mortgage, £300,000.