Adding wife to house/ mortgage
Discussion
My fixed rate is coming to an end shortly, I wanted to add my wife at remortgage however I'm getting conflicting advise, from no problem or yes she can but wie'll have to pay stamp duty. Is this true even if married?
We are also applying for a joint btl mortgage tomorrow, now not sure if I should do it in joint names or just mine, either way it is affordable, my situation is a follows::
Main house/mortgage - in my name
Btl house/mortgage 1 - in my name
Btl house/mortgage 2 - applying tomorrow, can be either mine or joint.
My reason for transferring is I don't want any problems should something happen to me, I'd want everything to pass to my wife with minimum issue, would i be better off putting it in a will if too complicated, My ultimate goal was to end up with all three properties in joint names, no problems with trusting the wife before I get asked.
Thanks in advance
We are also applying for a joint btl mortgage tomorrow, now not sure if I should do it in joint names or just mine, either way it is affordable, my situation is a follows::
Main house/mortgage - in my name
Btl house/mortgage 1 - in my name
Btl house/mortgage 2 - applying tomorrow, can be either mine or joint.
My reason for transferring is I don't want any problems should something happen to me, I'd want everything to pass to my wife with minimum issue, would i be better off putting it in a will if too complicated, My ultimate goal was to end up with all three properties in joint names, no problems with trusting the wife before I get asked.
Thanks in advance
Sarnie said:
You'd need to post the figures involved to be able to decipher if SDLT is due......
Thanks for the promy reply.Main house/mortgage - in my name - value £475k mortgage £130k
Btl house/mortgage 1 - in my name - value £190k mortgage £117k
Btl house/mortgage 2 - applying tomorrow, can be either mine or joint. purchase price £142k, deposit £35500, mortgage £106.5k
Let me know if any more info needed, thanks
Hi casa,
If affordability is not an issue, then I would suggest there is no advantage putting any of the properties in your wife's name.
Unless of course you can reduce your tax liability.
With regards to your spouse inheriting everything without issue, she would automatically if you died without a will, it would be easier though if you did have a will...
If affordability is not an issue, then I would suggest there is no advantage putting any of the properties in your wife's name.
Unless of course you can reduce your tax liability.
With regards to your spouse inheriting everything without issue, she would automatically if you died without a will, it would be easier though if you did have a will...
Seems difficult to find out if we'll get caught for the 3% additional SD, if so that's £1900 (on £65k)on our residential property, if it's only standard SD then £65k is below the threshold.
I'd certainly want my existing btl in joint names for the 2 x capital gains tax, agbut looks like we'll get caught for 3% stamp duty on that as well. Seems a bit unfair as SD has already been paid on all properties and no extra money has been exchanged.
I'd certainly want my existing btl in joint names for the 2 x capital gains tax, agbut looks like we'll get caught for 3% stamp duty on that as well. Seems a bit unfair as SD has already been paid on all properties and no extra money has been exchanged.
pkrplyr said:
Hi casa,
If affordability is not an issue, then I would suggest there is no advantage putting any of the properties in your wife's name.
Unless of course you can reduce your tax liability.
With regards to your spouse inheriting everything without issue, she would automatically if you died without a will, it would be easier though if you did have a will...
Get a will. Nothing has been mentioned about potential children existing and assets listed are already over 250k.If affordability is not an issue, then I would suggest there is no advantage putting any of the properties in your wife's name.
Unless of course you can reduce your tax liability.
With regards to your spouse inheriting everything without issue, she would automatically if you died without a will, it would be easier though if you did have a will...
Casa1862 said:
Seems difficult to find out if we'll get caught for the 3% additional SD, if so that's £1900 (on £65k)on our residential property, if it's only standard SD then £65k is below the threshold.
I'd certainly want my existing btl in joint names for the 2 x capital gains tax, agbut looks like we'll get caught for 3% stamp duty on that as well. Seems a bit unfair as SD has already been paid on all properties and no extra money has been exchanged.
I can't answer the 3% question I'm afraid, but is SD is due then it will be on half the property value, not half the mortgage. I'd certainly want my existing btl in joint names for the 2 x capital gains tax, agbut looks like we'll get caught for 3% stamp duty on that as well. Seems a bit unfair as SD has already been paid on all properties and no extra money has been exchanged.
-edited to add: may not be correct despite agreement from far better qualified people, see below.
Edited by UpTheIron on Thursday 21st April 13:52
Getting so much conflicting info, however first time I've heard that half SD on the value of the property, general consensus seems to be half the mortgage. Last poster, what do you base this on?
Wish I had just done them at the time but was told no problem adding a spouse, removing much more difficult, doesn't seem to be the case.
Can I not gift half the property?
Wish I had just done them at the time but was told no problem adding a spouse, removing much more difficult, doesn't seem to be the case.
Can I not gift half the property?
Casa1862 said:
Getting so much conflicting info, however first time I've heard that half SD on the value of the property, general consensus seems to be half the mortgage. Last poster, what do you base this on?
Because Stamp Duty is based on the value of what you are buying/transferring.........not the mortgage you using/being added to.Think about when you buy a house, if it's £500k with a £100k mortgage.......the stamp duty is based on the £500k purchase price, not the £100k mortgage value.
Because we have a whole raft of taxes which impinge on property transactions, it is increasingly becoming very difficult to ascertain what the best course of action to take is due to the impact of the various taxes.
At the moment we have
Basic Stamp Duty Land Tax (SDLT)
The SDLT 3% Surcharge on additional properties
Capital Gains Tax
Inheritance Tax (and related Gift Tax)
In addition, the following issues also have an impact
Marital Status of parties
Existence or not of a will
At the moment we have
Basic Stamp Duty Land Tax (SDLT)
The SDLT 3% Surcharge on additional properties
Capital Gains Tax
Inheritance Tax (and related Gift Tax)
In addition, the following issues also have an impact
Marital Status of parties
Existence or not of a will
Sounds like I need to take advice, I'm certainly not paying SD on my residential home, half of £475k is several thousands, I mistakenly assumed it would be a common transaction to put a single name property in joint names, surly it must happen all the time when couples get married and want joint ownership of their home, do they all end up pay SD?
Casa1862 said:
Getting so much conflicting info, however first time I've heard that half SD on the value of the property, general consensus seems to be half the mortgage. Last poster, what do you base this on?
OP, as per others have since suggested... half the value of the property. - However* example 2 here: https://www.gov.uk/guidance/sdlt-transferring-owne... suggests otherwise. I'm very surprised at this (if accurate) as surely it is a massive loophole? Taking the example, what if the mortgage was for <£125k... no SDLT payable although the value of the share transferred is over the threshold? If it is accurate then it's interesting to me as it could make for some CGT avoidance.
UpTheIron said:
P, as per others have since suggested... half the value of the property.
That is the very link I was about to post, my understanding was that if standard rate SD applied then half of the remaining mortgage £65k would not attract SD. Worst case, if 3% rate applied then I'd get my mortgage down to £80k, and miss additional SD as wife's share was £40k. Now that I'm being told it's on the value of the house then that throws the plan out, in any case that was my valuation, surly in a case like mine they wouldn't expect me to instruct a professional valuation to get the correct amount to pay, Doesn't sound right to me.- However* example 2 here: https://www.gov.uk/guidance/sdlt-transferring-owne... suggests otherwise. I'm very surprised at this (if accurate) as surely it is a massive loophole? Taking the example, what if the mortgage was for <£125k... no SDLT payable although the value of the share transferred is over the threshold? If it is accurate then it's interesting to me as it could make for some CGT avoidance.
Also, on the link it mentions no SD if gifted, I'm not expecting any money so is that not a gift?
Thanks for all the info by the way.
Edited by Casa1862 on Thursday 21st April 14:16
Casa1862 said:
BoRED S2upid said:
Unless things have changed in 4 years then all you need to pay is a lawyer to change the names on deeds we did it - wife came on my deeds I went on hers joint mortgages job done. Nobody is selling anything to anyone.
This is what I was told!!Sarnie said:
Just because cash isn't being exchanged, the person being added is gaining a property, therefore that gain is taxed via SDLT.........
I understand that but what is the SD based on, house value which some here seem to suggest or the mortgage as the government link seems to suggest? I've even asked an accountant and he's not too sure, particularlary if 3% or standard rate will apply. Must be thousands of people in my situation wanting to add partners so they have joint ownership. I can't find a number for HMRC to ask them, they just refer you to there website, anyone got a number?
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