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Where Taxpayers and Advisers Meet

Unmarried couple split with 2 homes, each to live in one as main residence

bertab
Posts: 2
Joined: Wed Sep 12, 2018 7:52 pm

Unmarried couple split with 2 homes, each to live in one as main residence

Postby bertab » Wed Sep 12, 2018 9:04 pm

Hello,
I'm currently going through remortgaging after split from long term partner. We were not married. We own two houses (located in Wales), both in joint names and both worth ~£130,000 each. One was let, which he will move into as main residence (~£50k left on mortgage) and I will stay in the other.

The one I stay in and which I am currently remortgaging (~£70k left on mortgage), I will take on with no payment consideration to him. He will to me, but the amount is yet to be agreed.

In the remortgage documents I've received from the solicitor to remove his name, there is a Section on LTT Addtional Property Tax Surcharge, where it asks the question 'Does any party to the new mortgage own a dwelling anywhere in the world in addition to the above Property?' I will own it with him for as long as it takes him to remortgage and take it on, which I hope won't be long. Will I need to pay an LTT Additional Property Tax Surcharge on the property that he is moving into?

I can't find any information on or examples of our situation online, so would very much appreciate some advice on what SDLT we might expect to pay in order for us each to transfer one house to one name.
Thanks very much to anyone who can help!

robbob
Posts: 2621
Joined: Wed Aug 06, 2008 4:01 pm

Re: Unmarried couple split with 2 homes, each to live in one as main residence

Postby robbob » Thu Sep 13, 2018 9:46 am

I have highlighted a section that may? be relevant from the gov.uk website


https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Transactions
If you’re transferring ownership (or part ownership) of a residential property to your spouse, the higher rates do not apply as long as no one else is involved in the transfer.

If you want to increase the amount of a property that you already own, you do not have to pay the higher rates when all the following apply:

you already own 25% or more
the dwelling has been your only or main home for the previous 3 years
(if you’re extending a lease) your lease still has 21 years or more left to run


https://www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

bertab
Posts: 2
Joined: Wed Sep 12, 2018 7:52 pm

Re: Unmarried couple split with 2 homes, each to live in one as main residence

Postby bertab » Sat Sep 15, 2018 2:45 pm

I'll have a look at the link you have sent.
Thank you very much for your reply, it's much appreciated!


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