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TonyTax
TonyTax, Tax Consultant
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Hello, I would like to enquire about the stamp duty and Tax

Customer Question

Hello,
I would like to enquire about the stamp duty and Tax implication.
Both my husband and i own a property in London. He is over 70 and I am 67 year old. the property worth(NNN) NNN-NNNNsterling pounds with no present mortgage on it for the time being.
My duaghter is a young dentist who lives with us but her name is XXXXX XXXXX the deed. we would like to borrow about 200000 for home improvement reason and my daughter is willing to do it in her name or her name and my name if possible.
My question is: does my daughter's name have to be on the deed, and does she have to pay a stamp duty. Taking into consideration that we bought this property and we paid for the stamp duty less than 11 moths ago.
Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Will the loan be secured on the £1,000,000 property?
Customer: replied 3 years ago.

hello Tony,


 


yes the mortgage will be secured on the property.


Also i would like you to know that i have already paid the amount of 33.00 sterling pound through Paypal

Expert:  TonyTax replied 3 years ago.
Thanks.

I can see on your question that you have paid a deposit to just answer/pearl. You need do nothing else until you are happy with my answer.

Leave this with me while I draft my answer to the stamp duty question.
Expert:  TonyTax replied 3 years ago.

Hi again.

 

We cannot send answers as emails I'm afraid.

The lender may insist that your daughter's name is XXXXX XXXXX deeds so you would need to ask them about that.

Take a look here for information on stamp duty. There would only be stamp duty to pay if your daughter was taking a part-ownership interest in the property and it would only be based on the cash involved (there is none) or the value of the mortgage she is taking responsibility for so long as it was more than £125,000, the point at which stamp duty starts. So, if your daughter was actually buying an interest in the property for £200,000, then stamp duty would apply in my view. If the mortgage was in joint names, stamp duty would not apply as your daughter would only be responsible for £100,000.

As there is no suggestion of the intention being to give your daughter an ownership interest in the property, stamp duty will not apply.

I hope this helps but let me know if you have any further questions.

Customer: replied 3 years ago.

Tony thank you . you are right, the reason for the question is not to put her name on the deed to own a part of the property. I do i understand that if the mamount we would like to borrow is less than 125000 then the stamp duty will not apply anyway. Also, if she is going to borrow 100000, then she does not have to be on the deed and she does not have to pay any stamp duty as long as the mortgage is in joint names. in both cases, I understand, if she borrows 125000 or 100000 she does not have to pay any stamp duty. Is that right ?
Now can i ask if you know where to go to apply for a mortgage?


 


 


thank you


 


 

Expert:  TonyTax replied 3 years ago.
Your understanding of the stamp duty situation is correct.

I'm not an independent financial adviser so I cannot recommend any particular mortgage provider. However, if you google "home mortgages" or just "mortgages" you will find many potential lenders. You could go to see an independent financial adviser who will have access to numerous lenders or direct to one of the high street banks or building societies if you don't wish to use an IFA.
Customer: replied 3 years ago.

Thank you Tony. You have been most helpful. I would discuss the result of your answer with my family when they are back from work. If I have a related question, can I forward it to you tomorrow?


 


Dr Sbano

Expert:  TonyTax replied 3 years ago.
Yes, you can.
Expert:  TonyTax replied 3 years ago.
Hi again.

I can see that you have read my last post. If you still have questions please let me know. If not, would you kindly rate my answers so that I get paid for my work.

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