Stamp duty on additional property? Am I liable

[Markramt]

Good morning

Wondering if you could help

I have a question with regards to stamp duty on buying additional property.

Situation - I already own my own flat, currently value £135k mortgage outstanding £108k which I will be keeping.

My partner who currently has a joint mortgage with her ex on a house valued at £185k, outstanding mortgage £95k.

We have negotiated and I have the option of buying him out for £38k and my name going on the title deeds.

In order to raise the 38k we have been offered a joint remortgage on her house of £138k, raising a little extra for repairs and redecoration.

I've read the threshold is £40k for stamp duty on additional properties and you will not be liable for the additional 3% SDLT!?

Will this mean I will be exempt from SDLT? As I will be purchasing his share for £38k or is SDLT calculated on the total value of the property, or the total remortgage, or the fact I will then own a 50% share of a property valued at £185k?

I cannot find anything anywhere that clearly states how this situation will pan out with regards to stamp duty and second properties

Do I need something draw up to state that my interest in the property does not exceed a value of £40k?

Anyways thanks for taking the time to read this, look forward to hearing back from you, if you need any more info feel free to contact me

Kind regards

Tom markram
07793539976
T_markram@hotmail.com

[bd6759]

You are not purchasing his share for £38k. You are also indirectly giving him £47.25K by relieving him of his mortgage liability. The total amount will be subject to the additional 3%.

[maths]

SDLT is levied on the purchase of an interest in land based on any chargeable consideration provided.

As bd comments the chargeable consideration you are providing is the £38k payment to the ex plus taking over the ex's mortgage liability (ie 50% of £95k).

Hence the 3% charge will apply.