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Where Taxpayers and Advisers Meet

Re-mortgaging and adding spouse

catericajane
Posts: 1
Joined: Sat May 04, 2019 5:53 pm

Re-mortgaging and adding spouse

Postby catericajane » Sat May 04, 2019 6:04 pm

Hello,
In 2009 I purchased a property on my own - house value £235,000. Since then I have married. In 2018 we purchased a second home together and we paid the second home 3% additional stamp duty (£18,000 on a property value of £350,000).
Now we are remortgaging the house I purchased on my own, house value now £480,000 and we're taking out a joint buy-to-let mortgage of £360,000.
My question is, considering I already paid second home stamp duty on the second house purchase, will my husband be liable for any stamp duty if we re-mortgage in both our names?
Thanks!

someone
Posts: 381
Joined: Mon Feb 13, 2017 10:09 am

Re: Re-mortgaging and adding spouse

Postby someone » Sun May 05, 2019 11:32 am

It depends on the current mortgage and the proportion of beneficial interest your husband acquires.

No current mortgage = no consideration = no sdlt.

300k current mortgage, 50% to H, sdlt on 150k consideration (no 3% surcharge though)

300k current mortgage, 99% to H, sdlt on 297k consideration (ditto)

300k current mortgage, 1% to H, sdlt on 3k consideration (so no sdlt)

In the final case, absent submitting a form 17, the rental profit is split 50/50 - so this is a way of transferring half the rental income while not incurring any SDLT.

sandy2000
Posts: 38
Joined: Wed Aug 06, 2008 3:33 pm

Re: Re-mortgaging and adding spouse

Postby sandy2000 » Wed Aug 14, 2019 9:19 pm

It depends on the current mortgage and the proportion of beneficial interest your husband acquires.

No current mortgage = no consideration = no sdlt.

300k current mortgage, 50% to H, sdlt on 150k consideration (no 3% surcharge though)

300k current mortgage, 99% to H, sdlt on 297k consideration (ditto)

300k current mortgage, 1% to H, sdlt on 3k consideration (so no sdlt)

In the final case, absent submitting a form 17, the rental profit is split 50/50 - so this is a way of transferring half the rental income while not incurring any SDLT.
If a share in the mortgage is simply transferred up to 125k (ie adding other party to mortgage) - is there any SDLT due?
Does a re-mortgage with a new lender in joint names also gets counted as transfer of mortgage ?

someone
Posts: 381
Joined: Mon Feb 13, 2017 10:09 am

Re: Re-mortgaging and adding spouse

Postby someone » Thu Aug 15, 2019 7:29 am

No SDLT in H&W transfers up to 125k

In joint names, the share of the mortgage for SDLT purposes is the share of the property owned. Joint tenants are deemed 50/50 owners for this. Tenants in common as per the beneficial ownership - usually in a declaration if trust.

If you are remortgaging and putting into joint names, the SDLT is calculated on the original mortgage, not the new mortgage.

sandy2000
Posts: 38
Joined: Wed Aug 06, 2008 3:33 pm

Re: Re-mortgaging and adding spouse

Postby sandy2000 » Thu Aug 15, 2019 9:31 am

thank yousomeone for clarifying my doubts


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