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Main residency to main residency

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latte19
latte19 Posts: 62 Forumite
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in House buying, renting & selling
Stamp duty query because two solicitors have told me different things.

Me and ex-husband own a house we let out.
Our main residency was another home but a few months ago I removed my name from this to allow me to get a mortgage for another house in my name only and he’s taken on the mortgage from our marital home.

I thought I would still have to pay £2850 (house price £95k) because technically it’s a second house - one solicitor agreed. My house solicitor says I may not have to as it’s main residency to main residency, even though I’m on the mortgage for the buy to let.

Any experts have any take on this? It’s slightly unusual.
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  • SDLT_Geek
    SDLT_Geek Posts: 2,496 Forumite
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    For SDLT you should not focus on liability on the mortgage but what shares in the properties you have. It sounds as if you have a share in the let property worth £40,000 or more. So to escape the surcharge based on the replacement of main residence you would need:
    1. to have disposed of all of your interest in your marital home and
    2. Have last lived in your marital home as your only or main residence at some time in the three years leading up to the purchase of your new home and
    3. Buy the new property intending to live in it as your only or main residence.
  • latte19
    latte19 Posts: 62 Forumite
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    Thank you for your detailed response!

    1. My name is no longer on the mortgage
    2. I moved out of my marital home last year
    3. This house purchase is my mail home with just my name etc
  • SDLT_Geek
    SDLT_Geek Posts: 2,496 Forumite
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    It sounds (although you do not actually say) that you retain a share in the former marital home. So you can expect the extra 3% SDLT to be due on your purchase, even though you intend to live in the property you are buying as your only or main residence.
  • latte19
    latte19 Posts: 62 Forumite
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    What does “interest” mean though? The house is nothing to do with me anymore.

    However, in financial settlement he may have to give me some equity (even though my name isn’t on the mortgage / bills).

    How would the government know that though? The marital home isn’t mine anymore.
  • latte19
    latte19 Posts: 62 Forumite
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    Google the meaning: Property interest refers to the extent of a person's or entity's rights in property. It deals with the percentage of ownership, time period of ownership, right of survivorship, and rights to transfer or encumber property.

    I see what you mean. But we haven’t even discussed what “share” of any, I would have. So I don’t see why I would have to pay. Currently at this point in time I technically have no interest in it. Will they see it that way too?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    latte19 wrote: »
    However, in financial settlement he may have to give me some equity...Currently at this point in time I technically have no interest in it.
    Not sure how you can simultaneously have some equity in the house but not have an interest in it.
  • BelowTheLine
    BelowTheLine Posts: 77 Forumite
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    To get a definitive answer to whether "you have an interest" in the property or not in the eyes of the government, £3 to the Land Registry will give you an official copy of the title register for the property which (among other information) contains these lines -

    Registered Owner(s) : JOHN DOE and JANE DOE of <address>

    If your name appears up there, you have an interest in the property.

    https://www.gov.uk/search-property-information-land-registry
    latte19 wrote: »
    What does “interest” mean though?
    latte19 wrote: »
    GCurrently at this point in time I technically have no interest in it. Will they see it that way too?
  • saajan_12
    saajan_12 Posts: 3,621 Forumite
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    BelowTheLine wrote: »
    To get a definitive answer to whether "you have an interest" in the property or not in the eyes of the government, £3 to the Land Registry will give you an official copy of the title register for the property which (among other information) contains these lines -

    Registered Owner(s) : JOHN DOE and JANE DOE of <address>

    If your name appears up there, you have an interest in the property.

    https://www.gov.uk/search-property-information-land-registry

    That would give you legal ownership. I suspect OP would know whether their name had been taken off the deeds by a solicitor / filling in the required forms.

    However SDLT is based on beneficial ownership, so if you are expecting "some equity" from the sale then you have a share for SDLT purposes.
  • latte19
    latte19 Posts: 62 Forumite
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    In all honesty, I don’t know if I’m expecting any equity. Our financial separation isn’t clear cut as there is a business and buy to let property involved.

    I’m not sure how feasibly it would be for him to buy me out for that house. At the moment I would be inclined to say no I don’t but I am not sure.

    I will check out the Deeds and find out. My solicitor is checking all this out too and she’s leaning more on the side of not having to pay. She might even check the land registry for me.
  • SDLT_Geek
    SDLT_Geek Posts: 2,496 Forumite
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    latte19 wrote: »
    I’m not sure how feasibly it would be for him to buy me out for that house. At the moment I would be inclined to say no I don’t but I am not sure.
    As you are talking of him buying you out, then it seems clear you have a share.

    The identity of the registered proprietor on the register of title is not the end of the matter. Land can be held on trust for other parties and sometimes a declaration of trust makes the position clear. HMRC accept this, see for example this guidance: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09815 under the heading "Bare Trusts".
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