Split titles and Stamp Duty circumvention?

Split titles and Stamp Duty circumvention?

13:35 PM, 25th February 2022, About 3 months ago 2

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Hi, I’m looking to split titles on a 3 flat conversion I completed in 2018 to lower the finance costs.

I’ve been advised there will be stamp duty to pay even if the leases are transferred to my spouse and myself.

Is there any way around this as the mortgage is 460k, and I’m sure I can get a better rate?

Many thanks

Rodney

 



Comments

by AP

7:36 AM, 26th February 2022, About 3 months ago

I have done this. New 999 year leases were drawn up to be held in my name (I was the original freeholder) and the freehold was transferred to my spouse which had a very low value (below SDLT threshold) because all the value is in the long leases.
This was done on the same day as remortgaging the flats under the new leases.
The problem is finding a lender who will lend on all three flats within the same building (their exposure limits), who are happy for your spouse to be the freeholder and also to lend on brand new leases (most require them to be in place for 6 months). It won’t be easy but it’s possible. I would check with lenders / brokers first before doing anything.
I have just remortgaged again on the properties, and a few years on it’s still not as straightforward finding lenders and accessing the best rates. For example TMW, Virgin etc won’t lend because of the exposure and related person freehold.

by RODNEY CRABB

9:57 AM, 26th February 2022, About 3 months ago

Thanks. Yes the stamp would be circa 9k a flat .I may need to put them in an llp with my wife and stepdaughter. I need advice. What rate do you pay by the way


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