Stamp Duty Query -- Buying my friend out

A

aimc

Guest
Hi,

Myself & my friend bought a house 3 years ago, i'm now in a position to buy her out & i'm wondering what the implications are as far as stamp duty is concerned? Could anybody explain it to me or point me towards a good link.

aimc
 
Hi,

you don't pay any stamp duty - it's what is called 'a transfer of ownership' from joint names to your name only. it's a straight forward process - your mortgage lender will be able to fill you in. Your mortgage interest relief will remain unchanged, although you will have to reapply to revenue as they will need to know that you are the only owner of the property.
 
Triplex - it may or may not be that simple. There may be stamp duty on the transfer depending on the value and the status of the purchaser.

While its true to say that a lender may facilitate the change of ownership and the release of one person from the mortgage, in reality, it is more likely that the original mortgage will be discharged from the proceeds of a new mortgage.

Post actual details ( original pp, whether stamp duty paid, value of share now being purchased) for more information.

mf


mf
 
mf1 said:
Triplex - it may or may not be that simple.
Click to expand...
triplex said:
it is that simple - i've done it ;)
Click to expand...
You did it based on the merits of your case/situation. This doesn't mean it will be the same for the OP or for those reading the post.

While no harm in searching for information online and via boards such as AAM, this is a matter for discussion with your solicitor.
 
Just came across this as I was looking for some info on something.

MF1 is correct, stamp Duty is payable on buying out as it is payable on conveyancing and a transfer constitutes a conveyence but whether you pay and what you pay is dependant on the value of the buyout and whether you were a first time buyer/second time buyer. It is also dependant on whether you use your existing bank or remortgage with another. Additionally, tenancy (common or joint) has no bearing on it. In many cases Stamp Duty is not payable due to the level of equity or mortgage remaining. Each case is different.
 
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