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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10776
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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My partner and I are unmarried and are about to purchase a

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Hi, my partner and I are unmarried and are about to purchase a house which will be our joint main residence. Until recently, we both owned properties. His was sold one month ago and we are now living together in the property that I own. My question is would we incur second home stamp duty if he buys the new property in his name only and if not, could I buy into the property at a later date without incurring it at this point?

Hi Marianne, provided you are not in a civil partnership, each of you are classed as being independent, and therefore if the purchase proceeds in your partner's sole name, he will just have to pay the standard rate of Stamp Duty as it will be his main and only residence. If the property were transferred into joint names at a later date, Stamp Duty may become payable IF you were paying any consideration to him or if the property is subject to a Mortgage (for Stamp Duty purposes, the consideration will be half of the Mortgage amount, as you will be treated as taking on half the mortgage liability and which amount is classed as consideration. If Stamp Duty is payable, it would be at the enhanced rate. However, if the property is Mortgage free at the date of the transfer and he transfers the property into joint names by way of a gift, no Stamp Duty will be payable. I hope this assists and sets out the legal position. If I have answered your question, I would be grateful if you could rate my answer. Kind Regards Al

Customer: replied 1 year ago.
can I check I understand this correctly... If I buy a share in the property, for instance, half, at a later date, this is paying a consideration and the higher rate stamp duty would then be payable? Would this be on the purchase price of the property or the market value of the property at that point in time and would it be on the whole of whichever of these or only on the proportion of my share?

Hi, SDLT is payable on the consideration- so, if you were to pay say £150,000 for a half share, you would have SDLT at the enhanced rate to pay on this amount. Hope this clarifies the position. Kind Regards Al

Customer: replied 1 year ago.
Hi, let's assume the property value would be £200k and it has a £100k mortgage on it at some point in the future. If I then buy half of the property for £50k and take on responsibility for half of the mortgage, how much would the consideration then be? £50k or £100k?

Hi, in this scenario, you would pay SDLT on £50,000 (for half the Mortgage amount) and £50,000 for the cash consideration, meaning you would pay it on the total of £100K. Kind Regards Al

Customer: replied 1 year ago.
Just one more clarification. What does it mean "May become payable" in your first response? In what cases would it not become payable even if a consideration is paid? Also, if I would marry my partner after he bought the house, how would that change the situation?

Hi, re-reading my first rely, it should really have said "Stamp Duty would become payable" and not "may become payable" if you paid cash consideration/assumed half of any Mortgage. If you do get married, a married couple are treated as 1 person for SDLT purposes, so you would be in the same position as you are now, and the enhanced rate would be payable provided you still owned your current property. Kind Regards Al

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Customer: replied 1 year ago.
Thanks Al!