Adding spouse into title deeds - SDLT

Mrserj

Hi all,

Was trying to get information about how to add my wife into the title deeds for my house and after doing a good amount of research I still find the process a bit confusing and was hoping you would be kind enough to help with a few questions I had please. 

Background:
Bought my house as main residence back in 2020, was already married at the time and made a mistake of not adding her in to the mortgage and the title deeds at the time (partly my error and lack of advice from solicitor).

In 2022 my dad fell ill due to cancer so me and wife moved into my parents home to help look after them. In 2022 at point of remortgage I switched my property from a residential to a buy to let.

1. I now want to add my wife into the title deeds of the house but from what I understand as the house still has an outstanding mortgage - I must first add her into the mortgage? I am due a remortgage later this year so maybe this would be a good time to get this part sorted? 

2. She isn’t working currently as she is a full time carer for my dad and I would still be the sole person responsible for the mortgage payments. Is this likely to have an impact in her being added to the mortgage? 

3. The outstanding mortgage amount is around 210k. I also have seen that SDLT needs to be paid on ‘chargeable consideration’ when any transfers are taking place (even when married). Would ‘chargeable consideration’ be the value of the house when it was purchased? Or would it be half of the outstanding mortgage (I.e. 105k) - in which case as below the 125k threshold - no stamp duty would be payable for this transfer? 

Thank you for your help in advance. 

S

Mrserj

Also besides the solicitor costs and land registry fees would there be any other costs I would need to consider?

thank you. 

silvercar

1. Yes and yes

2. no problem normally. Would have the tax advantage that half the rent would be hers and half the mortgage her expense (even if you continue to pay it). Investigate the tax position - if you are a higher rate tax payer you only get the mortgage interest as an expense restricted to the basic rate, if she doesn’t have any other income she hasn’t got any tax paid to put the interest against.

3. gifts between spouses are fine. SDLT on half the mortgage which would be zero in this case.

you would need to notify the tenants that you now jointly own the property and so have a joint landlord situation, but that is a formality.