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Where Taxpayers and Advisers Meet

remortgaging BTL change of equity and SDLT

psingh
Posts:2
Joined:Fri Aug 17, 2018 2:41 pm
remortgaging BTL change of equity and SDLT

Postby psingh » Fri Aug 17, 2018 2:53 pm

Hi
I am in the process of remortgaging a BTL property which is owned by my wife. The property at the moment has a £115,000 mortgage on it and i am looking to remortgage this to £260,000.I am also looking to change the equity so that i am made 50% owner as well. We also have other BTL properties and a main residence . I would like to know how much stamp duty i will be liable if i follow this through . I have had several different professional people tell me different things. Can someone please clarify what duty i would have to pay

someone
Posts:692
Joined:Mon Feb 13, 2017 10:09 am

Re: remortgaging BTL change of equity and SDLT

Postby someone » Sat Aug 18, 2018 7:45 am

None :-)

Provided your wife doesn't increase the mortgage first and then do a transfer of equity.

SDLT will be assessed on the debt you are assuming from her - which is half the outstanding mortgage or c60k. The fact that you are increasing the borrowing doesn't matter, it's the amount that your wife is no longer liable for that matters and that's half the original amount.

No SDLT on first 125k

H&W transfers are exempt from the 3% surcharge (since 22 Nov 2017 IIRC)

psingh
Posts:2
Joined:Fri Aug 17, 2018 2:41 pm

Re: remortgaging BTL change of equity and SDLT

Postby psingh » Sun Aug 19, 2018 10:14 am

Thank you for your prompt reply


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