Calculating SDLT after separation (unmarried)
Discussion
I've looked online at the Gov website however the examples aren't clear nor relate to my situation. I'll explain my predicament in simplest terms (using indicative figures), as I'm trying to understand the actual calculation needed so I can work it out for my own circumstances...
An unmarried couple jointly own (deeds and mortgage) a house - they separate.
It's agreed that person A takes over the house ownership from person B (in exchange for equity surplus + cash from savings).
Old situation:
House Value (joint ownership) - c£475000
Outstanding Mortgage (joint mortgage) - £225,000
Process:
- Person A gets a new mortgage in their sole name
- Deeds of the house to be transferred into Person A's sole name
- Person A to pay person B the equity surplus (new mortgage amount minus the old outstanding mortgage amount) + cash from savings
New Situation:
House Value - c£475,000
New mortgage (in person A's sole name) - £275,000
Mortgage surplus to be paid to Person B direct from the solicitor - £50k
How much SDLT does person A have to pay, and how is it calculated?!?
An unmarried couple jointly own (deeds and mortgage) a house - they separate.
It's agreed that person A takes over the house ownership from person B (in exchange for equity surplus + cash from savings).
Old situation:
House Value (joint ownership) - c£475000
Outstanding Mortgage (joint mortgage) - £225,000
Process:
- Person A gets a new mortgage in their sole name
- Deeds of the house to be transferred into Person A's sole name
- Person A to pay person B the equity surplus (new mortgage amount minus the old outstanding mortgage amount) + cash from savings
New Situation:
House Value - c£475,000
New mortgage (in person A's sole name) - £275,000
Mortgage surplus to be paid to Person B direct from the solicitor - £50k
How much SDLT does person A have to pay, and how is it calculated?!?
Edited by kmpowell on Saturday 14th December 10:43
JPJPJP said:
Yup, and it’s example 4 which seems to relate to my situation.I read it as I (person A) will only have to pay SDLT on the total amount she (person 2) receives (surplus+cash) if the total she receives exceeds £125k?
kmpowell said:
Yup, and it’s example 4 which seems to relate to my situation.
I read it as I (person A) will only have to pay SDLT on the total amount she (person 2) receives (surplus+cash) if the total she receives exceeds £125k?
It looks clear to me your situation matches example 3 not 4.I read it as I (person A) will only have to pay SDLT on the total amount she (person 2) receives (surplus+cash) if the total she receives exceeds £125k?
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