Stamp duty on Morgage increase on equity release

F

fuzz

Guest
Dear AAM

We recently increased our morgage on our PPR, it was an equity release basically to purchase investment property
We have now received a bill from our bank saying that any morgage over €254K is subject to stamp duty of .1% does this apply in this case as it was a top up to our existing morgage and not a new one
Plus a legal department fee of €60 to work this out for the bank

Any advice appreciated
Many thanks
 
You are paying stamp duty on the mortgage deed, not the actual property. There is no exemption once the mortgage is over €254,000, even for FTBs.
The amount payable is 0.1% of the mortgage amount, subject to a maximum of €630.

See [thread=38954]this thread[/thread] for more info.
 
Say if mortgage approval is for 265K, for self build and you only draw down 220K, do you pay the stamp duty on the basis of the original approved amount or one year later on the final sum drawn down??

Liz
 
"do you pay the stamp duty on the basis of the original approved amount "

Yes - the mortgage needs to be stamped to be registered and the mortgage will be registered on first draw down. The alternative for the solicitor is not to stamp the Mortgage, register it as under threshold ( E254K) and then later take up the Mortgage Deed from the Land Registry, stamp it up and lodge again with correct stamp duty. Which to my mind is too much of a faff.

mf
 
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