I jointly own a 2nd home as a BTL property with an uncle. We wish to redistribute the ownership so only I own the property. This will be by him gifting me his share. I have never lived in the BTL and cannot do so in future.
The £400k property is mortgaged for £220k - ie the uncle's mortgaged share is £110k which is effectively being gifted to me. Mortgage company are happy with this in principle (and with uncle coming off it).
As I see it, £110k mortgaged share coming to me as a gift = stamp duty at 3% on this "consideration" as this is a second home.
The reason this feels bizarre is because I start off with the same number (and address) of homes as I end up with, albeit a larger share.
Whereas if I only had one home, I'd have no SDLT to pay as it's below £150k.
Is that right? Seems bizarre to pay stamp duty on the mortgage amount when we intially both paid stamp duty together on the whole property amount.
We find it odd to pay tax twice on a property we own when we are just swapping around how much we own of it. Any way (other than paying off mortgage) to reduce this please? Thanks very much.