This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

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:692
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:692
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


Return to “Stamp Duty, Stamp Duty Land Tax, SDLT”