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TaxRobin
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Experience:  International tax
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My brother owns a property worth £560000, his sole name is

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My brother owns a property worth £560000, his sole name is ***** ***** mortgage and the land register. He wants to remortgage and add me onto the property and apply for a mortgage with me as well. Currently he has a mortgage outstanding of £100000, we are going to raise this to £340000.
1. Will I be liable for stamp duty because I am now remortgaging with him and being added onto the property?
2. Will he be liable for any stamp duty?
3. If either of us were to come off the mortgage/property register say in two years- will either of us have to pay any stamp duty?
Thanks,
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello and thank you for allowing me to assist you.
You may have to pay Stamp Duty Land Tax (SDLT) if the ownership of land or property is transferred to you in exchange for any payment or ‘consideration’. By taking liability for the mortgage, the owner’s partner (you) has given ‘consideration’ .
The equity isn’t included in the calculation as you only pay SDLT on the consideration given.
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England, Wales and Northern Ireland.
The current SDLT threshold is £125,000 for residential properties and £150,000 for non-residential land and properties.
You will pay the SDLT on the amount of the mortgage that is your portion, half the £340,000.
Customer: replied 2 years ago.

Hi There... thank you for this information, however my question was actually three fold:

2. Will he (brother) be liable for any stamp duty?
3. If either of us were to come off the mortgage/property register say in two years- will either of us have to pay any stamp duty?

Thanks

Expert:  TaxRobin replied 2 years ago.
2. Will he (brother) be liable for any stamp duty? The buyer pays not your brother the "seller" in this situation.3. If either of us were to come off the mortgage/property register say in two years- will either of us have to pay any stamp duty? If consideration is made for the ownership of the property, SDLT is looked at not just coming off the mortgage.
Customer: replied 2 years ago.

Sorry just to Clarify the answer to question 3. So he will be coming off the mortgage & off the property register but will not want me to pay him anything- not in terms of equity or gift- in this situation would there be any consideration?

Expert:  TaxRobin replied 2 years ago.
If he comes off as an owner, he is transferring his portion to you. If you are assuming the full remaining mortgage, his portion is transferred to you and you would then be looking at SDLT on his portion you are "buying".There is consideration if you take on his portion of the mortgage.
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