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Where Taxpayers and Advisers Meet

SDLT for mortgaging inherited property

Macca40
Posts:1
Joined:Tue May 23, 2017 9:49 pm
SDLT for mortgaging inherited property

Postby Macca40 » Tue May 23, 2017 9:57 pm

Hi all,

I've just inherited a freehold house, mortgage free, jointly with my brother. We've now got a mortgage offer on it to rent it out on a buy to let basis. It's now been suggested to me by a lawyer (although not expert in that field, but still informed) that if we proceed with the mortgage then we may be liable for SDLT on the house?

Does this ring a bell with anyone?

Thanks in advance

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: SDLT for mortgaging inherited property

Postby someone » Wed May 24, 2017 8:11 am

What are you using the mortgage for?

If you're using it to buy out someone else's share then yes, there may be SDLT due. You pay SDLT when buying property (or a share of property) not when mortgaging property.

N.B. If you are buying out someone else's share then SDLT would be due whether or not a mortgage was involved. But if you're just raising money for something else using a mortgage then there's no SDLT due.

If three siblings inherit an equal share of the property then it might be possible to vary the will so that just two of them inherit the property and the other inherits everything else to avoid there being a transfer of property for SDLT purposes.


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