I have a client how owns a large house who is looking to convert the property into 2 flats. He needs to bring his wife in as joint owner of both to satisfy the mortgage company who will be raising 2 mortgages, one on each flat.Has anyone had any experience of this? I was wondering if there could be any potential stamp duty issues if HMRC deem the 2 flats to be linked?
Each flat will be valued in the region of £110k so under the limit singly but jointly they will go into the 1% bracket.
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There's no consideration
If the wife acquires a 50% interest before the mortgages are raised, there's no consideration (and no market value substitution in these circumstances), so there's nothing for stamp duty land tax to be charged on.