Mortgage change and Tax

payless

MJ posted

Stamp Duty only payable on purchase and this is remortgage There should be no Tax Liability Although with figures given you are Nearing IHT limit on equity alone.

Incorrect

As Lisyloo states Stamp Duty is much more complex than this, basically the duty will depend if the value transferred is greater than £60K, so in this case the Value of the transfer is classed as 1/2 of the mtg. If Mortgage was higher, or funds were being paid to other party to gain the benefit of the 1/2 share of the equity , then duty may be payable.

Solicitors have a SDLT Return to do and the IR are Sh*t hot on this at the moment

http://www.taxationweb.co.uk/forum/?cat=11 gives more example cases

Complex area thats why I suggested speaking to Stamp office direct.

Most of NatWide cases does get allocated to a solicitor that use a tracking system, but some do-

have you got your offer - Natwide offers are valid for 6months for offer date.

MJ_Mortgages

I have a similiar case to this an as transfer of Mortgage to a new lender the Mortgage Deed will have to be transfered in Favour of new lender with the added spouse with the matter of equity depends how Mortgage Deed is written Tennants in common or Joint Tennants.

I have found large Sols bills where there is splitting of the ways ( Sepation & Divorcee cases) and Mortgage is not moved from one lender to another as there is extremely more paper work to do and usually 2 sets of Sols engaged to take part.

As for the stamp duty I am pretty sure there is none due, but again I agree with you it is worth double checking. As I say have completed a couple of similiar cases with larger amounts and no stamp duty was paid on these.

We should all write to your local MPs as Stamp Duty should be raised to at least a starting level of £250k @ 1 % if not scrapped all together.


But will read your links with great interest as we all learn something new every day.

MJ

lisyloo

Here is one such thread.

http://www.moneysavingexpert.com/cgi-bin/yabb/YaBB.cgi?board=Mortgages;action=display;num=1088394004;start=1#1

payless

I have been told by a local solicitor, that this point is  a big thing at the moment , ( not sure if this would impact on brokers as well if it later transpires that duty is payable)

http://www.taxationweb.co.uk/stampduties/
has some more links,

remember that its now calssed as stamp duty land tax, which bites much harder.

As far as stamp duty is concerned - with them trying to slow down/ depress prices can't see them rasing limit.

None of this should concern the original poster, as he followed by original tip on getting clarification

jstallan

Thanks for all the responses.....

I have on authority for the NatWide mortgage advisor that our offer lasts for ever - yes I was amazed as well...

after talking to the Inland revenue this afternoon, I think stamp duty is applicable on 50% of the outstanding debt. So as this will be £31k and stamp duty starts at £60k, I tink I'm sorted on that front.

Still waiting for a response from my call earlier to the NatWide... but when I finally get it resolved, I'll post back the results...

MJ_Mortgages

Have looked at both links The tax one refers to Sols for advice and can,t see a similar case.

Have emailed my contact Sols to calirfy this case.So with a little luck will have a full brake down by tomorrow afternoon

If other case is correct would mean around £375 + Vat after, & if the contibution from lender is £250 & still stands. Which depending which Sols you use i would say is average for legal costs ( new I should trained as a Sol )

As for searchs some lenders stand this by means of Insurance or stand this charge themselves.

As for link Cpl said they went to Conveyancing firm some lenders will only take Sols with minimum of two partners this can be cheaper but lender will insist on legal rep for them selves which is payable by the borrower.

Thank you for pointing these out.

MJ

DiggingOut

Someone posted an inland revenue link showing that stamp duty definitely does apply in such cases. Can't find it now. Might be on tax board, haven't checked there.

Joe_Bloggs

I think the situation digging out is referring to is MortgageMan's Remortgage/Stampduty reply here.
The circumstances are similar but the links are good.

DiggingOut

Thanks, j_b, that's the one.

jstallan

Hi,

Well the mortgage got sorted last Friday and the only solicitors costs were approx £240... But now we've got another problem..

The Problem now is that my previous lender (Alliance & Leicester) changed its fees that covers deeds release, redemption and sealing charge. This was originally quoted at £195 and last friday we recieved a breakdown statement showing it was now £295.

The original quote was a faxed directly from A&L to our solicitors and between this and last friday was approx 10 days duration. We recieved no notice that these fees were going to increase and were not given an option as to whether we wanted to proceed (of which we would still have done).

Apart from speaking to the A&L (which is difficult as the mortgage was in my wife's name so she has to liase with them) can ayone give any further advice? My solicitor has told me that it is down to me to reclaim (if possible) the additional money from the A&L. I've looked on their website and cannot see any reference to sealing fees etc...

Regards,
John