10:23 AM, 10th February 2022, About 2 years ago 7
Dear All, I am trying to re-mortgage a leasehold flat as my current deal has moved onto an SVR.
The flat is jointly owned with my wife (as a Tenancy in Common with the intention of my share being 99% and my wife 1% – however, we never did create a Deed of Trust to that effect or submit a Form 17 to HMRC).
To comply with the new lender’s mortgage conditions (no Tenancies in Common acceptable to them) it has to be moved into my sole name at the same time as the remortgage. For income tax purposes, it is preferable to remove her from the title rather than moving the property back to a joint tenancy. There will be no payment to my wife for her share, although I will, of course, be assuming her share of the mortgage (although I don’t know if that is 1% or 50%)??
The flat has a mortgage of £180k. I understand that the ‘consideration’ for SDLT purposes is deemed to be 1/2 of the mortgage and that this would be charged at 3% (as we own multiple properties), so 3% of £90k etc.
However, some online info suggests that the Finance Act 2018 has exempted inter-spouse transfers from SDLT in this situation. Of course a little knowledge is a dangerous thing….
Does anyone have knowledge of this situation, please, or any clever fixes?
Thanks in advance.
Previous ArticleHMO tenant vanished?