Hi
I've read numerous threads but none seem to answer my specific situation, hence I'd be grateful if anyone can advise me here.
I'm gifting 50% of a property to my brother, Property value is £230k, Current Mortgage is £160k, I realise my brother will pay SDLT at 3% (due to this being a second property for him) on 50% of the current mortgage outstanding amount as it stands.
We have a re-mortgage offer in place in our Joint names.
my question is: If I pay off the outstanding mortgage prior to the transfer, due to it being a gift there will be no SDLT, however if I also subsequently re-mortgage for £160k all at the same time will SDLT become chargeable? and then secondly, If I made the re-mortgage a separate transaction, say a week after, then I assume that I would avoid any SDLT charge? ( solicitor says SDLT is paid on the existing mortgage redemption statement irrespective of any future mortgage)
I realise the gifted amount changes substantially and I also have CGT implications, but it's this one specific point on the SDLT that I'm struggling to be 100% clear on.
Thanks
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