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  • Buy-to-Let

    Stamp Duty

    Hi all,

    I’m new to investing and would appreciate your guidance/opinions

    I’m thinking about moving house and using my current two bed terrace as BTL. I understand I’ll get a 3% stamp duty charge as it’s my second residential property.

    I’ve seen that if I take my name of my current mortgage and leave my partners there- and purchase a second home in my name only, so we both have two first homes I can avoid this?

    Is this legal and would it save me paying 3% stamp duty?

    Im currently not looking to move for another 2years - do i need to take my name of my current mortgage now or waiting until closer the time?

    TIA

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    SDLT is a bit complex. You would be best talking to a Conveyancing Solicitor about the in's and outs.

    Though you should note its not the mortgage that matters (well about tax). It's your name on the title as an owner.
    Your parents would be in fact purchasing your share of the property, that may incur an SDLT Chargeable event as well.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    As Adam said, you need to transfer the title to your partner.

    It is highly likely you will also need to transfer the mortgage into their sole name - the mortgage company won't like having your name on the mortgage and not on the deed. This means that a consideration has been 'paid'. Your partner will be liable for SD on this consideration (i.e. half the mortgage) - see example 2 of https://www.gov.uk/guidance/sdlt-transfer...e-together (this is the reverse of your situation but I believe it is still relevant). You will need to do the calculations to work out whether you are better off. Remember to take into account the land registry fees, solicitor fees (if you use one) etc.

    As to timing, you need to decide whether you think SD rates will go up/down and whether you trust your partner as it will be their house.

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    Thankyou both for your responses, greatly appreciated!!

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