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Transfer of equity between siblings
tictackitkat
Posts: 5 Forumite
Hi, I bought a house with my sister in 2020, she has now decided to move out.
I have secured a mortgage in my name only (the original mortgage’s fixed term was over anyway) for £189,000. The property is worth about £230,000.
I think I will need to pay stamp duty land tax, even though my sister is not getting any money from the house, I believe the mortgage will be ‘consideration’? My question is, how much will I have to pay? Is it 2% of anything over £125,000 or 2% of 50% of the whole mortgage? I tried a few calculators but there wasn’t anything for my specific situation (not a first time buyer but not moving house or buying a second property). Thank you in advance.
I have secured a mortgage in my name only (the original mortgage’s fixed term was over anyway) for £189,000. The property is worth about £230,000.
I think I will need to pay stamp duty land tax, even though my sister is not getting any money from the house, I believe the mortgage will be ‘consideration’? My question is, how much will I have to pay? Is it 2% of anything over £125,000 or 2% of 50% of the whole mortgage? I tried a few calculators but there wasn’t anything for my specific situation (not a first time buyer but not moving house or buying a second property). Thank you in advance.
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Comments
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A realistic view of the transaction seems to be that you are buying a half share from your sister (assuming you owned it 50 / 50 at the outset). On the basis that a half share in the property is worth say £115,000 then I would expect the chargeable consideration to be about £115,000, by the time you add any actual payment to her (though I note what you say about that) and a proportion of the debt which is being discharged.tictackitkat said:Hi, I bought a house with my sister in 2020, she has now decided to move out.
I have secured a mortgage in my name only (the original mortgage’s fixed term was over anyway) for £189,000. The property is worth about £230,000.
I think I will need to pay stamp duty land tax, even though my sister is not getting any money from the house, I believe the mortgage will be ‘consideration’? My question is, how much will I have to pay? Is it 2% of anything over £125,000 or 2% of 50% of the whole mortgage? I tried a few calculators but there wasn’t anything for my specific situation (not a first time buyer but not moving house or buying a second property). Thank you in advance.
At this level there might be no SDLT if you have no other property interests; "regular" SDLT starts at £125,000.1 -
Thank you so much for replying, I really appreciate it!0
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