Stamp Duty on Buy Out

jeny

Registered User
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Hi, I am currently in the process of trying to buy my partner out of our home after a split and although no money is changing hands ( economy) I am wondering am i going to be lumped with a bill for Stamp Duty for his 1/2 of the House?

I never thought there would be so much issues with trying basically to get him name off the mortgage but it seems i have had to apply for an entirely new mortgage and start the process from scratch as if i had just walked in from the street!
 
I too will be interested to hear replies to this. What is the difference in being married or not?
 
Transfer of assets between married couples are tax exempt.

To OP - it does amount to a complete conveyance /mortgage. If you post broad details: new/secondhand, current value, outstanding mortage amount, stamp duty status ( ftb's or other) it will be easier to answer your question. Its not just a question of scratching his name off the mortgage! He has obligations and before the lender releases him they need to be sure that you can afford the loan. At the moment, they have two parties/two incomes to chase in the event of default.

mf
 
Transfer of assets between married couples are tax exempt.

To OP - it does amount to a complete conveyance /mortgage. If you post broad details: new/secondhand, current value, outstanding mortage amount, stamp duty status ( ftb's or other) it will be easier to answer your question. Its not just a question of scratching his name off the mortgage! He has obligations and before the lender releases him they need to be sure that you can afford the loan. At the moment, they have two parties/two incomes to chase in the event of default.

mf
Not wishing to hijack the OPs thread or muddy the waters, I'm in a similar position as well and I have my own thread opened about it here as well.http://www.askaboutmoney.com/showthread.php?t=114887. I will keep the other one updated however I have broadly my conditions and circumstances there, my solicitor when I went to him was very vague about it and said I would have to leave it with him as regards any stamp duty payable
 
We are not married, the mortgage is 255 (incl a top up) house value is about 255 was purchased for 255 ( 4 years ago)

I understand (although it is a pain) they need to re assess the situation with one person v's 2 and i have applied for the re mortgage of the property ( no word as yet)

But if i was to be accepted... would stamp duty apply?
 
If it you were both first time buyers there will be no stamp duty. In any other situation you are deemed to purchase half the house, thus you pay stamp duty on half the value of the house. But if half the value of the house is less than 127,000 there is no stamp duty, if it is more than 127,000 you pay 7% on any amount over 125000. So at a market valuation of 255,000 for whole or 127,500 for half there will be a bit of stamp duty. (7% of 2500 = 175 euro)
 
Hi guys,
I bought out a co-owner (not married) last year and when we initially bought we were both first time buyers. I did not lose my first time buyer status by buying him out and thus did not have to pay any stamp duty or capital gains tax thank God.

Cheers,
M
 
Ramble is correct in his calculations. I bought out my house from my ex partner in January (no money exchanged either) - the house was valued at €250,000 and as a result I did not have to pay any stamp duty as it fell under the threshold (I was not a FTB). In my case I simply completely a Deed of Transfer with the bank (KBC in my case). I did not have to reapply for a "new" mortgage. They did however have to satisfy that I had the capacity to repay the existing mortgage but once this was approved the process was relatively simple and took about six weeks to complete. You will need to have a solicitor oversee everything i.e. transferring the Deeds to your name only. Total legal costs were approx. €500 in my case. Best of luck with it.
 
Hi, was in a similar situation last year, I rang the stamp duty office in revenue about it, there are diff rules depending on whether you were a FTB when you bought house, if not there are 2 ways of calculating a stamp duty liability, can't remember the exact details of the 2nd way but it related to outstanding mortgage amount. Once the calculation by either method comes under €127K there would be no liability for a non-FTB. My solicitor didn't know these rules so it is worth the price of a phone call to check it yourself.
 
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