After my mother passed away late last year, I inherited a joint share of her house with my 2 brothers (each received 1/3 share of the house). The grant of administration has now been granted and I would now like to buy out my brothers but am struggling to calculate the stamp duty that will apply as they have agreed to sell me the property at a reduced price. The details are as follows;
(1) The market valuation is around 261,000 of which each share is worth around £87,000. So in effect, I already own £87,000 and the remaining share is worth £174,000.
(2) Both brothers have agreed to sell me their shares for £40,000 each so I will be paying £80,000 total for the remaining 2/3 of the equity in the house.
(3) I am an existing home owner (NOT a first time buyer) but I will be selling my home in order to move into this one (i.e. its not going to be a second home for the purposes of renting, it will become my primary home with no other properties). The purchase of my brother's shares will only happen once the sale of my existing home has completed so on the one hand I'll just be moving my primary ownership to the new property but I'm already a part owner due to the inheritance.
How is stamp duty calculated in this sort of situation? What rate will apply, given that I'm selling my primary residence to may this my primary residence but already own a share / not paying the full value.
Any thoughts / advice gratefully received.
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