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Where Taxpayers and Advisers Meet

Stamp Duty, Seperated Couple, Share of house under £40k

jonreedsoula1
Posts:1
Joined:Mon Mar 26, 2018 4:08 pm
Stamp Duty, Seperated Couple, Share of house under £40k

Postby jonreedsoula1 » Mon Mar 26, 2018 4:27 pm

Hi everyone,

I've had a look through topics but cannot find a situation that matches mine, any help would be hugely appreciated.

I bought a house with a former girlfriend in 2007, the market crashed and the house is still in negative equity (NRAM 100%+ with additional loan), as such I am still on the mortgage now even though my former partner is married to someone else. I have not lived in that house for 7 years.

The 1st property was purchased for £80,000 house but is now worth about £65,000, the outstanding mortgage is approximately £71,000

Me and my current partner are looking to buy a house now and have just found out we might have to pay the extra stamp duty due to me still being on the deeds of the other house. Is there a way out of this? I know if I can get off the mortgage in the 3 years after buying a new property I could get a tax refund that way.

Could it be considered that my share in the 1st house is less than £40,000 (which is it) or does the full market value count against me?

Does the fact I have not lived in the house for 7 years and my ex has remarried count for anything? The fact there is no chance of me ever living in that house again? It is purely a technicality that I am still on the mortgage and I will never have any future stake in the property.

I am only still on the mortgage because we haven't been able to get me removed due to how much my ex and her partner earn between them (not enough for NRAM to let me go)

Is there a way round this mess?

Many thanks everyone

Jon

SDLT Geek
Posts:232
Joined:Sun Apr 30, 2017 5:45 pm

Re: Stamp Duty, Seperated Couple, Share of house under £40k

Postby SDLT Geek » Mon Mar 26, 2018 5:24 pm

Given that your share in the property is worth under £40,000 it does not count against you for the purposes of the higher rates of SDLT.

Not that it matters, but the other points you make, like the long time since you have lived in it, are not of assistance to you.


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