Transfer of equity, property value & SDLT

[Grace Friend]

Dave and Amy purchased a property together 2 years ago for £1million.

They borrowed £700,000 with a joint mortgage. Dave paid 70% of the outstanding £300,000 and Amy paid the remaining 30%.

Dave and Amy have agreed that Dave will buy Amy out for a sum of £110,000. Dave will remortgage the property alone.

The outstanding balance on the mortgage is £663,590.

The property has appreciated in value and is now worth £1.1million.

How much stamp duty will Dave pay for the transfer of equity? How does the current estimated value of the property affect this figure?

Any responses gratefully received.

[maths]

SDLT will be based on the consideration paid which will be 110k plus 50% of the outstanding mortgage (assuming that D and A each owned 50% of the beneficial interest).

[Grace Friend]

Thanks Maths,

D owns 70% of the beneficial interest, A owns 30%.

Does that mean consideration would be £110k plus 30% of outstanding mortgage if D is buying A out?

Grace

[maths]

Correct.