Property loan swap and SDLT

[janice2006]

Son is the registered owner of 2 properties A&B.

Property A is home and has a small mortgage outstanding. Property B was purchased with a BTL mortgage and a loan from son’s parents. Now the son wants to live in the property B. He can get a repayment mortgage to replace the BTL mortgage. Rather than sell property A to repay the loan from the parents, can the loan from the parents in property B be swapped for the non- mortgage element the son owes in property A. The parents would let property A and keep the income less son's mortgage repayments. He would keep the small mortgage on property A, as the rental would be far more than the monthly repayments.

Can we do a swap of cash without incurring SDLT ? There is no CGT on property B due to slump in property prices, and none on A as its been a home.

[bd6759]

Would it not be more simple for him to remortgage A to repay the parents?