Stamp duty on change of equity
Posted: Wed Sep 13, 2017 9:48 am
Hi
I currently own a property that I live in with my wife and kids; the mortgage/title is against my name.
We are currently buying another property, as struggling to sell the house and we had a buyer pull out; so going through a remortgage (buy-to-let) in joint names on the current property and then another joint mortgage for a new house.
Question, when I give 50% share of our current house to my wife would she need to pay stamp duty on it?
I have read topics on it and they talk about the outstanding mortgage v the property value. But when you buy a property the stamp duty is against the purchase price!
House is worth 155k, outstanding mortage will be 116k.
During this whole process we are purchasing another property which will be our main residence. I know I have to pay an extra 3% stamp suty on this, even though it is the main residence. Is there anyway around this, to pay the stamp duty on the buiy-to-let property instead; just seems crazy to have to pay the additional stap duty on the more expensive house, that we are actually going to live in!
We are only going to keep the buy-to-let property for 2 years (mortgage term) and then sell to hopefully reclaim the 3% I am having to pay on the more expensive property, and with the new tax legislation coming in 2020 it makes little to no sense for us to have a second house.
I also spoke to someone who said my wife might have to pay an extra 3% also in stamp duty costs on the buy-to-let.
The whole stamp duty is quite confusing.
Any clarity would be great.
I currently own a property that I live in with my wife and kids; the mortgage/title is against my name.
We are currently buying another property, as struggling to sell the house and we had a buyer pull out; so going through a remortgage (buy-to-let) in joint names on the current property and then another joint mortgage for a new house.
Question, when I give 50% share of our current house to my wife would she need to pay stamp duty on it?
I have read topics on it and they talk about the outstanding mortgage v the property value. But when you buy a property the stamp duty is against the purchase price!
House is worth 155k, outstanding mortage will be 116k.
During this whole process we are purchasing another property which will be our main residence. I know I have to pay an extra 3% stamp suty on this, even though it is the main residence. Is there anyway around this, to pay the stamp duty on the buiy-to-let property instead; just seems crazy to have to pay the additional stap duty on the more expensive house, that we are actually going to live in!
We are only going to keep the buy-to-let property for 2 years (mortgage term) and then sell to hopefully reclaim the 3% I am having to pay on the more expensive property, and with the new tax legislation coming in 2020 it makes little to no sense for us to have a second house.
I also spoke to someone who said my wife might have to pay an extra 3% also in stamp duty costs on the buy-to-let.
The whole stamp duty is quite confusing.
Any clarity would be great.