Stamp duty on transfers between spouses
I have owned a property jointly with my husband since 1995. We transferred the mortgage from residential to buy to let in 2002 and now have 3 BTL properties in our portfolio.
My husband is 69 and to remortgage the property we agreed that it will be transferred into my name.
Advice from our mortgage broker was that transfers between husband and wife are exempt from capital gains tax and stamp duty. However, our conveyancing agent has informed me that this is not the case and a stamp duty of £1,450 is payable since the transfer is not by a court order.
Is this correct?
Many thanks in advance for your advice.
Sincerely
Sara
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Member Since January 2011 - Comments: 12217 - Articles: 1413
8:07 PM, 20th April 2015, About 11 years ago
Hi Sara
I suspect your conveyancer might be right but there may also be a basis to mitigate most if not all of the stamp duty, if indeed a transfer is necessary at all. Our joint venture conveyancing firm specialises in such matters. For further details please see >>> http://buytoletconveyancing.co.uk/
Given that you appear to have a strong basis to question the advice of your mortgage adviser in respect of tax related issues you may also want to consider taking a second opinion in respect of his mortgage recommendations. 69 certainly isn’t too old for some lenders to consider granting new 20 year mortgages. I suggest having a chat with Mark Edwards who I used to work with prior to my retirement from financial services back in 2009.
Prior to becoming a mortgage broker back in 2003 Mark Edwards was previously a senior tax investigator, hence my reasons for recommending him in particular. Please see >>> https://www.property118.com/member/?id=3042
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Member Since May 2014 - Comments: 252
9:37 PM, 20th April 2015, About 11 years ago
Why not just re-mortgage jointly with the likes of The Mortgage Works who will lend up to your 90’s.
You do not need any proof of income other than rental income on the property if you are considered an experienced landlord, and having 3 buy to lets is considered experienced (professional) elsewhere!
Member Since January 2011 - Comments: 12217 - Articles: 1413
9:54 PM, 20th April 2015, About 11 years ago
Reply to the comment left by “Colin Dartnell” at “20/04/2015 – 21:37“:
TMW were one of the lenders that I had in mind too Colin, hence my suggestions.
.
Comments: 3
5:47 AM, 21st April 2015, About 11 years ago
Thank you Mark and Collin. I was with TMW but there fees are quite high compared to other lenders. What surprised me was that the mortgage broker never mentioned that a stamp duty was required for the transfer. Will take your advice on conveyancing
Member Since September 2013 - Comments: 104 - Articles: 3
10:57 AM, 21st April 2015, About 11 years ago
Reply to the comment left by “Saheer Gharbia” at “21/04/2015 – 05:47“:
TMW usually have a lower fee option (£995) albeit with a higher rate.
Potential clients need to be under 70 when applying for a TMW mortgage now. Sara’s husband’s age is given as 69, but I’m too polite to ask a lady her age!
Member Since July 2013 - Comments: 561
11:49 AM, 21st April 2015, About 11 years ago
Often you only need to put 1% in the other name to get the mortgage, but then the income will have to be split 50:50 or 1:99 for tax depending on if you decide to do a Form 14.
Member Since October 2013 - Comments: 17
11:50 AM, 21st April 2015, About 11 years ago
II believe that if you are transferring a property from both names to one name, Stamp Duty is payable based on what is owing on your mortgage as if you had paid half of the amount owing
. It would be the same even if you were just transferring the property without getting a remortgage. It sounds like you have a mortgage of £290,000.
Comments: 3
12:09 PM, 21st April 2015, About 11 years ago
Thanks everyone, responding g to John’s question, I am 51 and that was the reason for the change to get a better remortgage rate. Ian’s suggestion sounds logical but was not an option suggested by the mortgage broker. His comments were that at 69 my husband’s age would restrict access to a reasonable rate. The proposed rate was 2.13% from Natwest
Member Since January 2011 - Comments: 12217 - Articles: 1413
1:10 PM, 21st April 2015, About 11 years ago
Reply to the comment left by “patrick maher” at “21/04/2015 – 11:50“:
Stamp Duty is based on the value of the asset transferred, not the liability, hence the mortgage outstanding is of no relevance.
.
Member Since April 2015 - Comments: 6
1:13 PM, 21st April 2015, About 11 years ago
If a property is transferred to spouse, or into or out of joint names, and the spouse to whom the property is transferred takes over responsibility for the mortgage, the mortgage debt is treated as consideration for the transfer and is liable to SDLT.
Simon.