Moving home from ex-matrimonial home - stamp duty?

sushi1992_2

Hi guys,

Long story short, me and my husband got divorced and have a court order in place. The court order states that he would have to try and remove my name from the mortgage and do his best endeavours to do so. He has tried to do this with Barclays, but he doesn't earn enough to have it all on his name. So, I'm still on the mortgage, but of course, if he defaults, then I'll have to pay so I don't get a bad name, but obviously I can take him to court to reclaim the money/damages.

The question I have is this. I'm looking to try and buy a house with a mortgage. I'm currently hacking at trying to get a mortgage accepted, but I have a question about stamp duty.

Technically I'm on the deeds of my matrimonial house, but the court order states:

"The respondent shall transfer to the applicant all her legal estate and beneficial

interest in the family home upon payment of the Lump Sum ordered in paragraph

10".

And...

"Except as provided for in this order, the applicant’s claims for secured periodical

payments orders, lump sum orders, property adjustment orders, pension sharing

orders and pension attachment orders shall be dismissed and she shall not be

entitled to make any further application in relation to the marriage for an order

under the Matrimonial Causes Act 1973 section 23(1)(a) or (b) and she shall not

be entitled on the respondent’s death to apply for an order under the Inheritance

(Provision for Family and Dependants) Act 1975, section 2." - as part of the clean break.

My question is, will I be charged the additional 3% higher stamp duty for having the matrimonial house AND the new house I'll be moving to and residing in? I'm hoping the answer is no... but think I need some clarity on this if anyone has the answer?

SDLT_Geek

sushi1992_2 said:

Hi guys,

Long story short, me and my husband got divorced and have a court order in place. The court order states that he would have to try and remove my name from the mortgage and do his best endeavours to do so. He has tried to do this with Barclays, but he doesn't earn enough to have it all on his name. So, I'm still on the mortgage, but of course, if he defaults, then I'll have to pay so I don't get a bad name, but obviously I can take him to court to reclaim the money/damages.

The question I have is this. I'm looking to try and buy a house with a mortgage. I'm currently hacking at trying to get a mortgage accepted, but I have a question about stamp duty.

Technically I'm on the deeds of my matrimonial house, but the court order states:

"The respondent shall transfer to the applicant all her legal estate and beneficial

interest in the family home upon payment of the Lump Sum ordered in paragraph

10".

And...

"Except as provided for in this order, the applicant’s claims for secured periodical

payments orders, lump sum orders, property adjustment orders, pension sharing

orders and pension attachment orders shall be dismissed and she shall not be

entitled to make any further application in relation to the marriage for an order

under the Matrimonial Causes Act 1973 section 23(1)(a) or (b) and she shall not

be entitled on the respondent’s death to apply for an order under the Inheritance

(Provision for Family and Dependants) Act 1975, section 2." - as part of the clean break.

My question is, will I be charged the additional 3% higher stamp duty for having the matrimonial house AND the new house I'll be moving to and residing in? I'm hoping the answer is no... but think I need some clarity on this if anyone has the answer?

Is the new house you are buying in England, so that the relevant stamp duty is stamp duty land tax?  I expect so, as you refer to the extra 3% for additional properties.

It sounds likely that you will be saved from the extra 3% by the rules about there being a "property adjustment order" in place for the previous matrimonial home.  If so, then you retaining an interest in this will not "count against" you for the purpose of the 3% surcharge rules.  There is guidance about this here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09797

sushi1992_2

SDLT_Geek said:

sushi1992_2 said:

Hi guys,

Long story short, me and my husband got divorced and have a court order in place. The court order states that he would have to try and remove my name from the mortgage and do his best endeavours to do so. He has tried to do this with Barclays, but he doesn't earn enough to have it all on his name. So, I'm still on the mortgage, but of course, if he defaults, then I'll have to pay so I don't get a bad name, but obviously I can take him to court to reclaim the money/damages.

The question I have is this. I'm looking to try and buy a house with a mortgage. I'm currently hacking at trying to get a mortgage accepted, but I have a question about stamp duty.

Technically I'm on the deeds of my matrimonial house, but the court order states:

"The respondent shall transfer to the applicant all her legal estate and beneficial

interest in the family home upon payment of the Lump Sum ordered in paragraph

10".

And...

"Except as provided for in this order, the applicant’s claims for secured periodical

payments orders, lump sum orders, property adjustment orders, pension sharing

orders and pension attachment orders shall be dismissed and she shall not be

entitled to make any further application in relation to the marriage for an order

under the Matrimonial Causes Act 1973 section 23(1)(a) or (b) and she shall not

be entitled on the respondent’s death to apply for an order under the Inheritance

(Provision for Family and Dependants) Act 1975, section 2." - as part of the clean break.

My question is, will I be charged the additional 3% higher stamp duty for having the matrimonial house AND the new house I'll be moving to and residing in? I'm hoping the answer is no... but think I need some clarity on this if anyone has the answer?

Is the new house you are buying in England, so that the relevant stamp duty is stamp duty land tax?  I expect so, as you refer to the extra 3% for additional properties.

It sounds likely that you will be saved from the extra 3% by the rules about there being a "property adjustment order" in place for the previous matrimonial home.  If so, then you retaining an interest in this will not "count against" you for the purpose of the 3% surcharge rules.  There is guidance about this here: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09797

Hey SDLT_Geek , thanks for your response .

Indeed, this is a property in Andover, England. I do indeed have an approved Property Adjustment Order that says 1. I don't have any right to the matrimonial house as ex-hubby has paid £40,000 to me, and that's that, and 2. I have no liability of the mortgage in the sense that he needs to do his best to endeavour to remove me from it and if he defaults, I can sue (paraphrasing but that's what the court order means).

I suspect this is something I'd have to tell my solicitors about? Hopefully they'll be able to submit correct documentation to Land Registry upon house completion, as they have currently calculated the lower stamp duty, but that was on the basis of not having a "second house".

Not sure how to word it to the solicitors that the matrimonial house is now "not" selling, but that the court order indemnifies me of the mortgage and that I have no legal right to the property - I'm just on the deeds because I have to be (for the mortgage).