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Stamp Duty
AuntyJean
Posts: 589 Forumite
Sorry if this question has been asked before but unable to find answer in forums.
I am buying out my share (50%) of the marital home. My husband (soon to become ex) has had three valuations for the property and we have agreed the middle value of £130,000.
I will be obtaining a Buy To Let mortgage of £80,000 with £65,000 to go to hubby (the balance will be used to cover costs etc.).
My question is do I pay stamp duty on the value of the property or on the value of my mortgage? Would I be better off agreeing a price of £120,000 with hubby and giving him the extra £5,000 separately to avoid paying 1% on £130,000?
I am buying out my share (50%) of the marital home. My husband (soon to become ex) has had three valuations for the property and we have agreed the middle value of £130,000.
I will be obtaining a Buy To Let mortgage of £80,000 with £65,000 to go to hubby (the balance will be used to cover costs etc.).
My question is do I pay stamp duty on the value of the property or on the value of my mortgage? Would I be better off agreeing a price of £120,000 with hubby and giving him the extra £5,000 separately to avoid paying 1% on £130,000?
There is always light within the dark
0
Comments
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as far as I am aware it's on the value of the property - we've just had to pay £1720 SD on the house we are moving in to that cost £172,000 yet our mortgage is only £25k0
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It may depend upon whose name or names are on the deeds at present. You might only be eligible for half the cost of the property and hence pay nothing. This could be total nonsense. Perhaps wiser counsel will prevail.
J_B.0 -
The deeds are in joint names at present and I hold them.
The property is to be subject to a divorce settlement but I have been advised to arrange the purchase of the house first in case the divorce becomes 'difficult'. (Hubby and I are still good friends at present).There is always light within the dark0 -
I am pretty sure that there is an exemption when the property is a matrimonial home. I am just trying to find the exemption rules and if I don't get nagged to get off the computer, will post it back as quickly as possible.
Edit: It seems from this http://www.taxationweb.co.uk/capitaltaxes/article.php?id=61 that the exemption still applies and there will be no stamp duty payable.0 -
I clicked the thanks button for the "if I don't get nagged to get off the computer" comment. Im in the same boat all the time mate
glad to know I'm not alone 
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I have just been advised that my purchase of the house will be deemed as a transfer, not a purchase, and as such there will be no stamp duty to pay! That has saved me a few bob!There is always light within the dark0
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