adding partner as joint owner

super125

My partner is about to purchase half of my property and we will become joint owners. I will pay what remains on the mortgage so there will be no mortgage left on the property. I looked on the land registry and the fees are in the region of £80.

Do i need to do this through a solicitor? are there any other legal aspects i also need to factor in?

SDLT_Geek

super125 said:

My partner is about to purchase half of my property and we will become joint owners. I will pay what remains on the mortgage so there will be no mortgage left on the property. I looked on the land registry and the fees are in the region of £80.

Do i need to do this through a solicitor? are there any other legal aspects i also need to factor in?

Depending on the amount paid there might be stamp duty land tax to pay (assuming the property is in England).

canaldumidi

No mortgage, and (presumably) no need for the buyer (your partner) to do searches/survey on the property, and (also presumably) full trust between you so no need for a contract, so...

Complete and send the LR

AP1, ID1, TR1

and to HMRC

SDLT Return

super125

he will be paying me half of the current valuation of the property which is 340,000 [170,000] so not sure if this would incurr any stamp duty land tax.

Does anyone know the best way to go about it? Do i pay off the mortgage first and then complete the various forms available for download on the land registry site?

SDLT_Geek

super125 said:

he will be paying me half of the current valuation of the property which is 340,000 [170,000] so not sure if this would incurr any stamp duty land tax.

Does anyone know the best way to go about it? Do i pay off the mortgage first and then complete the various forms available for download on the land registry site?

Yes, there is likely be SDLT.  The amount will depend on factors such as whether he has another property, whether he is a first time buyer, whether he counts as UK resident for SDLT etc.

super125

he has no properties but he is not a first time buyer. He sold his property last year to move in with me - he is a full UK resident/citizen. So he will transfer 170, 000 to me as 50% of property value but i am not sure if this would incur any charges. I have just been looking at the stamp duty and saw the following:

Stamp Duty Land Tax rates and thresholds for residential properties

Purchase price, lease premium or transfer value	Stamp Duty Land Tax rate
Up to £250,00	Zero
The next £675,000 (the portion from £250,001 to £925,000)	5%
The next £575,000 (the portion from £925,001 to £1.5 million)	10%
The remaining amount (the portion above £1.5 million)	12%

so i am hoping this means as his purchase price is 170K this would incur no SDTR. Is this correct?

Slithery

super125 said:

Do i pay off the mortgage first and then complete the various forms available for download on the land registry site?

Yes. If there is still an outstanding mortgage then your lender will block any changes to the title.

super125

ignore the table i added before. i am struggling to make sense of the SDLT tables. I think he is liable to pay 2% on anything over 125K but i assure this would just be on the amount he is transferring. So he is transferring 170k to me so 2% of 45k - is this correct? so £900 ?

SDLT_Geek

super125 said:

ignore the table i added before. i am struggling to make sense of the SDLT tables. I think he is liable to pay 2% on anything over 125K but i assure this would just be on the amount he is transferring. So he is transferring 170k to me so 2% of 45k - is this correct? so £900 ?

Yes, that looks right.