Adding wife to house/ mortgage
Discussion
BoRED S2upid said:
Do you need her to take on half the mortgage? Gift her half, name on deeds mortgage in your name seems to tick the boxes. I can see if half the mortgage has to be in her name how that could be her buying half your house.
I don't need her to be on the mortgage for financial reasons, just land registry would be OK if it avoided SD however I don't think the mortgage company will agree to this, they'll want her on the mortgage which I understand. I want the residential property in joint names In case something happens to me my wife can keep the house and continue paying the mortgage without issue, even though I'm insured to cover the outstanding mortgages. My wife wont be in a position to reapply but will be able to continue paying if that makes sense, it gives my family options.
Stamp Duty does not exist. It was abolished over ten years ago. It was replaced by quite a different animal called Stamp Duty Land Tax (SDLT) - which has nothing to do with the stamping of physical documents (which is why Stamp Duty was so called).
SDLT is charged on "consideration". This is what passes between two parties when something is sold. It is normally cash - but it can be something in lieu of cash, like taking on the responsibility for half of an outstanding debt - such as a mortgage.
SDLT is charged on "consideration". This is what passes between two parties when something is sold. It is normally cash - but it can be something in lieu of cash, like taking on the responsibility for half of an outstanding debt - such as a mortgage.
Eric Mc said:
Stamp Duty does not exist. It was abolished over ten years ago. It was replaced by quite a different animal called Stamp Duty Land Tax (SDLT) - which has nothing to do with the stamping of physical documents (which is why Stamp Duty was so called).
SDLT is charged on "consideration". This is what passes between two parties when something is sold. It is normally cash - but it can be something in lieu of cash, like taking on the responsibility for half of an outstanding debt - such as a mortgage.
Ok thanks Eric, so in my case it's on the remaining mortgage not the value of the house, need to find now if standard rate or additional rate. Think I'm making progress!!SDLT is charged on "consideration". This is what passes between two parties when something is sold. It is normally cash - but it can be something in lieu of cash, like taking on the responsibility for half of an outstanding debt - such as a mortgage.
Edited by Casa1862 on Thursday 21st April 18:30
Might be of interest if anyone is in the same position, I finally got hold of someone at the SDLT department and they confirmed that SDLT was only payable on the remaining mortgage NOT the value of the house.
As my wife is linked to me, regardless that she has no existing properties to her name she'll still pay the additional 3% on her half. A bit late now but should have done it before the April deadline, I've got no choice (apart for pay the tax) to reduce the mortgage to £40k (her half) and do it then.
Think this will catch out a lot of people, it's a mess the way this was handled, the final consolation was about two weeks before the new rues where introduced so couldn't really have got a definitive answer.
I'm still going to write the them to ask about the "Gift" which mentions no SDLT and if that applies to us as I'm not expecting anything in return.
From the government website
"If the transfer is a gift and there’s no consideration, SDLT doesn’t normally apply."
As my wife is linked to me, regardless that she has no existing properties to her name she'll still pay the additional 3% on her half. A bit late now but should have done it before the April deadline, I've got no choice (apart for pay the tax) to reduce the mortgage to £40k (her half) and do it then.
Think this will catch out a lot of people, it's a mess the way this was handled, the final consolation was about two weeks before the new rues where introduced so couldn't really have got a definitive answer.
I'm still going to write the them to ask about the "Gift" which mentions no SDLT and if that applies to us as I'm not expecting anything in return.
From the government website
"If the transfer is a gift and there’s no consideration, SDLT doesn’t normally apply."
Edited by Casa1862 on Friday 22 April 12:31
Casa1862 said:
I'm still going to write the them to ask about the "Gift" which mentions no SDLT and if that applies to us as I'm not expecting anything in return.
From the government website
"If the transfer is a gift and there’s no consideration, SDLT doesn’t normally apply."
The whole point is that isn't just a gift: she is 'paying' you the consideration of taking on half the mortgage. SDLT is therefore payable on the value of the consideration.From the government website
"If the transfer is a gift and there’s no consideration, SDLT doesn’t normally apply."
Eric Mc said:
Exactly. "Consideration" is not just "money", but also "money worth".
Fair enough, I assume it could apply when no mortgage exist and you are gifting the property, hence no consideration. Either way I've got my answer and thanks to everyone's help. Wish I started looking before April though. Gassing Station | Finance | Top of Page | What's New | My Stuff