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Aston Lawyer
Aston Lawyer, Solicitor
Category: Law
Satisfied Customers: 10490
Experience:  Solicitor LLB (Hons) 23 years of experience in Conveyancing and Property Law
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my daughter has a flat in her name which i have helped to pay

Resolved Question:

my daughter has a flat in her name which i have helped to pay for by being a guarantor of her mortgage and paying down lump sums.the mortgage outstanding is 200'ooo can she gift the flat to me and i take over the debt therefore selling the flat to me for 200000 what stamp duty would be due.
Submitted: 3 years ago.
Category: Law
Expert:  Aston Lawyer replied 3 years ago.

Hi there,

Thanks for your enquiry.

The property could be transferred to you, provided the existing Mortgage Lender consented.

Upon completion of the Transfer, although you would not be paying any cash as such for the property, for Stamp Duty purposes, you are treated as taking on the Mortgage debt. Therefore, if there was £200,000 outstanding on the Mortgage, you would be liable for Stamp Duty on this amount, at a rate of 1%, equating to £2,000.

I hope this assists and answers your question.

Kind Regards
AL


Customer: replied 3 years ago.

:For Aston Lawyer: thanks your answer however if i obtain a mortgage for 200000 on a value of 411000 from an alternative provider can my daughter gift or transfer the flat to me with the stamp duty being calculated on 200000.thanks

Expert:  Aston Lawyer replied 3 years ago.

Hi again,

If you were to take out a new Mortgage with an alternative Lender for £200,000 and intended paying your Daughter £200,000, Stamp Duty would be payable on this figure- ie £2,000.

As the property is valued at £411,000 you would have to disclose to the new Lender that this reduced price of £200,000 was because it is a "family arrangement". Most Lenders would still be happy to lend on this basis.

I hope this helps.

Kind Regards
AL
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