BUYING OUT EX PARTNER - STAMP DUTY HELP

paintedtoenails

Good Evening,

Just after some help and clarification please as the info I can find online is as clear as mud and I am being told one thing by my financial advisor and something different by the conveyancing solicitor.

I split up with my ex partner in 2008, we had a joint mortgage on a house. At the time I was unable to take my name off the mortgage as the mortgage company deemed my ex didn't earn enough to get the mortgage on her own and our 2 children were under 18 so I couldn't insist on selling the house without her agreement.

Fast forward 14 years, my youngest child is now 18 and I am going to buy my ex partner out of the property. The property will my remortgaged in mine and my wifes name (50/50 share) and my ex partner will be removed from the deeds.

Can someone clarify if we are liable for stamp duty and if so at what rate?

My wife and I already own a property that we live in and when we purchased it we had to pay the stamp duty rate for a second property as my name was still on the mortgage of the property with my ex.

Obviously I have already payed stamp duty on both properties but my wife has only paid stamp duty on our current home.

Any help much appreciated.

Thanks
Dan

SDLT_Geek

paintedtoenails said:

Good Evening,

Just after some help and clarification please as the info I can find online is as clear as mud and I am being told one thing by my financial advisor and something different by the conveyancing solicitor.

I split up with my ex partner in 2008, we had a joint mortgage on a house. At the time I was unable to take my name off the mortgage as the mortgage company deemed my ex didn't earn enough to get the mortgage on her own and our 2 children were under 18 so I couldn't insist on selling the house without her agreement.

Fast forward 14 years, my youngest child is now 18 and I am going to buy my ex partner out of the property. The property will my remortgaged in mine and my wifes name (50/50 share) and my ex partner will be removed from the deeds.

Can someone clarify if we are liable for stamp duty and if so at what rate?

My wife and I already own a property that we live in and when we purchased it we had to pay the stamp duty rate for a second property as my name was still on the mortgage of the property with my ex.

Obviously I have already payed stamp duty on both properties but my wife has only paid stamp duty on our current home.

Any help much appreciated.

Thanks
Dan

We will need some more information to be able to help.

Is the house in England?

How much is your ex being paid?

What is the present amount of the mortgage?

Do you and your ex own the property 50 / 50?

paintedtoenails

SDLT_Geek said:

paintedtoenails said:

Good Evening,

Just after some help and clarification please as the info I can find online is as clear as mud and I am being told one thing by my financial advisor and something different by the conveyancing solicitor.

I split up with my ex partner in 2008, we had a joint mortgage on a house. At the time I was unable to take my name off the mortgage as the mortgage company deemed my ex didn't earn enough to get the mortgage on her own and our 2 children were under 18 so I couldn't insist on selling the house without her agreement.

Fast forward 14 years, my youngest child is now 18 and I am going to buy my ex partner out of the property. The property will my remortgaged in mine and my wifes name (50/50 share) and my ex partner will be removed from the deeds.

Can someone clarify if we are liable for stamp duty and if so at what rate?

My wife and I already own a property that we live in and when we purchased it we had to pay the stamp duty rate for a second property as my name was still on the mortgage of the property with my ex.

Obviously I have already payed stamp duty on both properties but my wife has only paid stamp duty on our current home.

Any help much appreciated.

Thanks
Dan

We will need some more information to be able to help.

Is the house in England?

How much is your ex being paid?

What is the present amount of the mortgage?

Do you and your ex own the property 50 / 50?

Hello

The house is in England.

My ex is being paid half the equity - £62500.

We own the property 50/50.

The outstanding mortgage on the property is £132000.

The house is valued at £258000.

My wife and I are taking out a mortgage of £195000 and we will own the property 50/50

Mr.Generous

Renovating with my brother sold half to him twice, each time solicitor charged 3% stamp duty on the value of the sale - ie half the value of the property equity.

So yours would be 3% of £62,500 the way our property lawyer specialist calculated it.

What are you being told?

paintedtoenails

Mr.Generous said:

Renovating with my brother sold half to him twice, each time solicitor charged 3% stamp duty on the value of the sale - ie half the value of the property equity.

So yours would be 3% of £62,500 the way our property lawyer specialist calculated it.

What are you being told?

The Solicitor says £3810, not sure how they got that figure but I am going to call them to discuss.

Financial advisor says it should be 3% of my wifes share of the mortgage (£97500) which equates to £2925.

I like your explanation better.

SDLT_Geek

paintedtoenails said:

SDLT_Geek said:

paintedtoenails said:

Good Evening,

Just after some help and clarification please as the info I can find online is as clear as mud and I am being told one thing by my financial advisor and something different by the conveyancing solicitor.

I split up with my ex partner in 2008, we had a joint mortgage on a house. At the time I was unable to take my name off the mortgage as the mortgage company deemed my ex didn't earn enough to get the mortgage on her own and our 2 children were under 18 so I couldn't insist on selling the house without her agreement.

Fast forward 14 years, my youngest child is now 18 and I am going to buy my ex partner out of the property. The property will my remortgaged in mine and my wifes name (50/50 share) and my ex partner will be removed from the deeds.

Can someone clarify if we are liable for stamp duty and if so at what rate?

My wife and I already own a property that we live in and when we purchased it we had to pay the stamp duty rate for a second property as my name was still on the mortgage of the property with my ex.

Obviously I have already payed stamp duty on both properties but my wife has only paid stamp duty on our current home.

Any help much appreciated.

Thanks
Dan

We will need some more information to be able to help.

Is the house in England?

How much is your ex being paid?

What is the present amount of the mortgage?

Do you and your ex own the property 50 / 50?

Hello

The house is in England.

My ex is being paid half the equity - £62500.

We own the property 50/50.

The outstanding mortgage on the property is £132000.

The house is valued at £258000.

My wife and I are taking out a mortgage of £195000 and we will own the property 50/50

I would expect the "chargeable consideration" to be the payment of £62,500 plus half of the mortgage (£66,000).  That would mean SDLT is due on £128,500.

Assuming the extra 3% SDLT applies, then the SDLT comes to £3,925.