SDLT buying out ex partner

EssexHebridean

housebuyer143 said:

EssexHebridean said:

You can always simply say you will deal with the SDLT aspect yourself. The solicitor will expect you to sign a letter confirming that you take full responsibility for the submission of the return and the payment (or not, hopefully!), but it’s perfectly possible to deal with it yourself, and should save you the legal fees for the submission.

They won't let you though if you are getting a mortgage. 

It’s certainly something that some lenders would veto - not sure if all would through. 

_Penny_Dreadful

EssexHebridean said:

housebuyer143 said:

EssexHebridean said:

You can always simply say you will deal with the SDLT aspect yourself. The solicitor will expect you to sign a letter confirming that you take full responsibility for the submission of the return and the payment (or not, hopefully!), but it’s perfectly possible to deal with it yourself, and should save you the legal fees for the submission.

They won't let you though if you are getting a mortgage. 

It’s certainly something that some lenders would veto - not sure if all would through. 

The solicitor, also acting for the mortgage lender, is only authorised to release the loan when they hold sufficient funds from the OP to complete the purchase of the property, pay all SDLT and registration fees to perfect the security as a first legal mortgage otherwise the solicitor has to accept the responsibility to pay them themselves. No solicitor is going to take on that responsibility themselves. 

kellylucinda86

SDLT_Geek said:

Here is the relevant legislation, from Finance Act 2003 / Schedule 4ZA.


7A Exception where purchaser has prior interest in purchased dwelling

(1) A chargeable transaction which would (but for this paragraph) fall within paragraph 3 or paragraph 6 does not fall within that paragraph if—

(a) the purchaser had a major interest (“the prior interest”) in the relevant purchased dwelling immediately before the effective date of the transaction, and

(b) the relevant purchased dwelling had been the purchaser's only or main residence throughout the period of three years ending with the effective date of the transaction.

(2) Sub-paragraph (1) does not apply if—

(a) the prior interest is a term of years absolute or a leasehold estate, and

(b) immediately before the effective date of the transaction, the remaining term of the prior interest is less than 21 years.

(3) Sub-paragraph (1) does not apply if immediately before the effective date of the transaction—

(a) the purchaser is beneficially entitled as a joint tenant to the prior interest, and

(b) there are more than three other joint tenants.

(4) Sub-paragraph (1) does not apply if immediately before the effective date of the transaction the purchaser is beneficially entitled as a tenant in common or coparcener to less than a quarter of the prior interest.

(5) In this paragraph “relevant purchased dwelling” means—

(a) the purchased dwelling mentioned in paragraph 3(1)(b), or (as the case may be)

(b) the purchased dwelling which meets the conditions mentioned in paragraph 6(1)(c).

I have put the wording which helps you in bold (at para 7A(1)).  If your purchase had fallen within Schedule 4ZA paragraph 3 the extra 3% would be due.  But para 7A(1) is saying that your transaction does not fall within para 3 because:

(a)  You already had a prior interest (your part share) and

(b) You have lived in the property as your only residence throughout the last three years.

There are exceptions in paras (2) to (4).  If any of them applied you could not rely on the special rule.  But none of them do apply.  For example, for para (4) you start with much more than a quarter share.

Thanks, I've ended up sending it again to the solicitor with quite an abrupt email he has said there's no SDLT to pay. Yippee I've put a complaint in with the manager! 
Thanks again