Stamp Duty when remortgaging & releasing equity to an ex

05huckle

My ex partner and I (not married) split last year and I’m in the process of remortgaging & additional borrowing to enable me to pay my ex partner her share of the equity. I am unsure whether I will have to pay Stamp Duty and really hoping this isn’t the case as it’s another expense to try and keep our family home as we have a son under 2yrs.

Ex partner and I share a home and currently in the 5th year of our 5 year mortgage). We bought the house for £300,000 and it is now valued at £360,000. The deposit is my own and secured with a trust deed (value of £46,100). After taking my deposit back, the remaining equity is to be split 50:50 (so approximately £43,000 to each of us).

- Remaining mortgage value is £228,000.
- My total share (deposit and equity) would be approx. £89k
- Shall need to borrow approx £271k to secure remortgage based on latest valuation.

Will I incur stamp duty on the full value of the remaining mortgage (£228k) and the equity being released to my ex (£43k)?

Thanks in advance for your help!!

Bookworm105

Stamp Duty Land Tax: transfer ownership of land or property - GOV.UK

Stamp Duty On Remortgage | Remortgaging | L&C

transfer of equity and Stamp Duty - Starck Uberoi Solicitors & Advocates

saajan_12

05huckle said:

My ex partner and I (not married) split last year and I’m in the process of remortgaging & additional borrowing to enable me to pay my ex partner her share of the equity. I am unsure whether I will have to pay Stamp Duty and really hoping this isn’t the case as it’s another expense to try and keep our family home as we have a son under 2yrs.

Ex partner and I share a home and currently in the 5th year of our 5 year mortgage). We bought the house for £300,000 and it is now valued at £360,000. The deposit is my own and secured with a trust deed (value of £46,100). After taking my deposit back, the remaining equity is to be split 50:50 (so approximately £43,000 to each of us).

- Remaining mortgage value is £228,000.
- My total share (deposit and equity) would be approx. £89k
- Shall need to borrow approx £271k to secure remortgage based on latest valuation.

Will I incur stamp duty on the full value of the remaining mortgage (£228k) and the equity being released to my ex (£43k)?

Thanks in advance for your help!!

If ex's share half the mortgage, then by buying them you're absolving them of 228k/2 = 114k plus paying them 43k, = a total £157k. 
That's what you'd pay stamp duty on.