I'm confused
I am hoping to buy my partner out of our house that we jointly own.
So how much Stamp Duty will i be liable to pay? I would be increasing
- Bought 350k
- Current MV 380k
- Mortgage 310k
the Mortgage to 345k to buy Partner out.
ie: 380 - 310 = 70k, giving him 35k.
We owe the house 50/50. We were not FTBs.
The house would not sell in the current market.
Help!
Hi everyone
Has anyone any idea how the following situation will work out:
If X and Z own a house together but X decides to go their separate way and remove their name off the mortgage leaving Z to pay the mortgage repayments. Will Z have to pay stamp duty?
There is no equity in the house. It's break even.
Apologies if this has been asked before as I am trying to understand all the implications.
Hi everyone
Thank you for you time.
Hmm the whole thing is a tricky situation. If the bank do a credit search on the the party who wants to hold onto the property, then they will be less likely to obtain the mortgage, due to having a personal loan and credit cards . . .
In the past, Revenue have insisted that they will only calculate the duty based on equity only if the Lenders are joined in the Deed to release the borrower being bought out and to consent to the now total owner taking over the entire mortgage. I've successfully argued the case that if the now total owner is taking on a substantially bigger mortgage with a new lender ( i.e. who will not join in the Deed of Conveyance ) then the situation is the same.
I'll be interested to hear any of the other legal/tax practitioners views.
mf
I have spoken to the revenue again, in light of what you have said in your posts and they agreed with what you have said in relation to equity, only after I brought it up with them.
Other than that they say pay the SD on half the market value less €125k.
One more question MN, please. Will a deposit have to be paid too the bank on the said property I spoke about? The mortgage broker says no
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