Stamp duty on house transfer between spouses

Stamp duty on house transfer between spouses

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Wonder is someone can help with this situation?

Husband owns house worth 480,000 with a repayment mortgage in his sole name of 230,000.

He wants to put the house in joint names with his spouse and convert the mortgage into an interest only joint mortgage of 260,000.

Not sure how this pans out for stamp duty and whether timing could make a difference?

As I understand it if she takes on half the new mortgage then she has given consideration of 130,000; would there be any stamp duty to pay on that?

If there is stamp duty to pay could they get round this by firstly putting the house in joint names; then after that clearing the old mortgage with a new joint mortgage?

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By LyneT
02nd Apr 2015 11:17

If you put the property in joint names you will create a SDLT liability in exactly the way you have described.

To avoid this, the mortgage should be cleared before putting it in joint names, then remortgaged after the transfer.

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