Stamp duty on concessionary purchases
ABBF08291
Posts: 29 Forumite
Hi,
What are the rules regarding SDLT due on concessionary sales / inter-family sales, where the sale price is below market value? Do LTVs still have to be "properly" maintained, or does it differ from lender to lender?
E.g. a property owned by parents with valuation of £1million, parents wish to sell to their child the house for £500k thereby gifting the remaining £500k to the child during the sale. Is the LTV 50% or 100% ?
Based on a sale price of £500k, can the child raise £500k via a mortgage and still be viewed of having an LTV of 50%, or would the sale need to satisfy lenders "deposit" requirements e.g. minimum LTV of 90% so sale price has to be minimum of £555k (on which the SDLT is then calculated).
Thanks v much.
What are the rules regarding SDLT due on concessionary sales / inter-family sales, where the sale price is below market value? Do LTVs still have to be "properly" maintained, or does it differ from lender to lender?
E.g. a property owned by parents with valuation of £1million, parents wish to sell to their child the house for £500k thereby gifting the remaining £500k to the child during the sale. Is the LTV 50% or 100% ?
Based on a sale price of £500k, can the child raise £500k via a mortgage and still be viewed of having an LTV of 50%, or would the sale need to satisfy lenders "deposit" requirements e.g. minimum LTV of 90% so sale price has to be minimum of £555k (on which the SDLT is then calculated).
Thanks v much.
0
Comments
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SDLT always based on actual consideration, amount paid not true value.
LTV can be based on concessionary purchase price divided by market value by many lenders as long as surveyor agrees.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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Thrugelmir wrote: »Is this a second property?
This is parents primary residence and their only UK property, selling to child (who is a first time buyer). Parents relocating to one of their properties owned abroad.0
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