Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. However, the news I bring will not please you.
our wife owns an interest in a residential property, its location does not matter. Thus the acquisition of a second property will attract the surcharge. One of the principles behind the surcharge was to include foreign investors. The surcharge is based on the price of the new residence purchased, the value of the existing property owned being an irrelevance. I would suggest a way around this would be for you to buy the new property in your sole name then the surcharge would not come into effect.
If at some future date your wife were to dispose of her flat then you could put the new house into both your names. As there is no consideration there would be no SDLT.
I am so sorry to have to rain on your parade.
If disposal takes place within 36 months then the surcharge will be refunded.
However, I have just unearthed this nugget from Zoopla which rather changes my original opinion:
'Even if you already own just a share in another property, it will count so long the share is worth £40,000 or more.'
Thus I don't think you need concern yourself with the surcharge. Phew!
Better than a poke in the eye with then proverbial sharp stick I think! Please be so kind as to rate me before you leave the Just Answer site.
Thank you for your support. So pleased I got it right in the end!