How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11436
Experience:  30 years as a practising solicitor.
31090051
Type Your Scots Law Question Here...
JGM is online now

Mortgage Question. Property Law I want to purchase a house

Resolved Question:

Mortgage Question. Property Law

I want to purchase a house from my sister and husband. At present they have a mortgage on the house. My question is....is it possible to Remove her husband and add myself to the mortgage. And then in a few years remove her from the mortgage so it is just in my name?

Can you tell me the steps I would have to take and the fees involved?
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

This is possible as long as the existing lender consents to the transactions. To start with the first element the three of you have to apply to the lender for a transfer of equity. Most lenders have an application form for this.

Assuming they consent, the lender will issue instructions to the solicitor to proceed. The fees and outlays will be in the region of £750 but you can shop around or the lender may ask you to use their own solicitors.

I hope this helps. Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.

Would stamp duty need to be paid?


 


Previous owner: Sister and her Husband


New owner: Me

Expert:  JGM replied 3 years ago.
As I understand it you are doing the transfer in two stages. Stamps duty would be paid only if the consideration for the share being purchased by you exceeded the threshhold, the lowest of which is currently £125,000.
Customer: replied 3 years ago.


the value of the mortgage is £150,000. would any of the transfer of equity exceed the threshold stamp duty?

Expert:  JGM replied 3 years ago.
What are you paying for the initial share in the property? If it's less than £125000 there's no stamp duty.
Customer: replied 3 years ago.


So if I buy into half the mortgage for half, say £75,000. then in a few years time I buy in the other half say another £75,000. No Stamp duty would be payable?

Expert:  JGM replied 3 years ago.
That is correct.
JGM and other Scots Law Specialists are ready to help you