buying out family home from siblings for investment property-stamp duty query

S

speedy

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my husband's siblings and himself were left the family home after his mother's death. he now wants to buy the house as an investment property.
we have done a lot of research on the rental market in the area and it is strong but of course that may not always be the case.....but this may be our only opportunity to buy a house at such a reduced price.

we would be taking a 2nd mortgage and have figured out that even if the house did not rent out at all we could still afford the mortgage.

here's my question.to buy out the others we would have to take out a mortgage of 145k but that would mean paying stamp duty. but could we just take out a mortgage for 127k and pay 18k separately or list it as fixtures and fittings etc?

any comments on the general situation would be appreciated. we are completely green about this and want to go in with our eyes open:eek:
 
The stamp duty is due on the market value of the property being acquired - not on the stamp duty threshold or on what you can afford or would prefer to pay. It would be tax evasion to apportion a figure for fixtures and fittings if it were not genuinely the case.

Your lender will want it all above board - the value their valuer places on the property will be the value for stamp duty purposes - unless it is ridiculously low.

Bite the bullet. Your husband is entitled to pay stamp duty at half the normal rate so long as he takes the property in his sole name i.e. not with his spouse.

mf
 
To clarify, it's calculated on the market value of the share of the property, not it's full market value.
He will pay 1.5% of €145k. That's €2'175.00. In the scheme of things that's not a lot of money.
mf1 is spot on in his/her advice.
 
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