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Aston Lawyer
Aston Lawyer, Solicitor
Category: Property Law
Satisfied Customers: 10798
Experience:  LLB(HONS) 23 years of experience in dealing with Conveyancing and Property Law
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I am about to purchase a house via joint mortgage with my

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Hi,
I am about to purchase a house via joint mortgage with my wife that will be our home. I also have a tenants in common share of a property with my ex-wife and am being advised that my wife and I will have to pay the higher rate of stamp duty because I have a second home, I have not lived in the property for 8 years and have no interest in it, is there any way of avoiding this as it seems very unfair to pay additional tax for a 'second home' that is not mine.
Regards,
Lee Stoyles

Hi Lee, I am afraid that if your name is ***** ***** Deeds to your other property, which you share with your ex-wife, on the day that you complete your new purchase, you will have to pay the enhanced rate of Stamp Duty. This is because you will own (or have an interest in more than 1 property on the date you complete your purchase and you are not replacing your main place of residence.

There are no ways around this, unless your name is ***** ***** the Deeds to your other property before you complete your purchase. Sorry, but this is the law, however daft it sounds.

If I have answered your question, I would be grateful if you could rate my answer in the top right hand corner of your screen, so I may get credited for my time.

Kind Regards Al

Customer: replied 4 months ago.
Thanks for the reply Al,
I have some questions:
1. Do I have to be named on the deed of the property my wife and I are purchasing via a joint mortgage?
2. Can I give my share of the deed of the previous property I am named on to my daughter thus removing myself, she is 17?
3. Can I reduce my share of the deed of the previous property I am named on to discount it as my place of residence?
4. If we do end up having to pay the higher rate of stamp duty will it be on the whole purchase price or just my share as my wife is not named on any other deeds?
5. If we do pay the higher rate can I get a refund if I remove my name from the deed on the previous property in the future?Sorry to be a nuisance but but the additional stamp duty at full purchase price is over £10k and I find it a bitter pill to swallow, I don’t care about having any property in my name I just want to move forward with my life.Lee

Hi, 1. You can't but even if the new purchase was in your wife's sole name, this would not change matters s married couples are seen as one person, for Stamp Duty purposes, so she would still have to pay the enhanced rate.

2.You can transfer your share to a third party, but I am afraid all owners of a property have to be aged 18 or over.

3. even if you owned only 1% share, you still own an "interest" in the property, so you would be liable for the enhanced rate of Stamp Duty.

4. it will be on the whole purchase price, I'm afraid.

5. You won't be able to claim the extra enhanced element back if you dispose of your interest in the other property at a later date. The only scenario whereby you can claim a refund is if it was your main residence and it is sold within 3 years of buying your new property.

Sorry, it's not better news. Please don't forget to rate my answer if I have assisted.

Thanks Al

Customer: replied 4 months ago.
Thanks Al,
Last question:
Point 5, so if my ex wife moves within the next 3 years and my name comes off the deed at that time can I claim a refund of the additional stamp duty?

Hi Lee,

I am afraid that as your other property is not you main place of residence, you won't be entitled to claim back the additional Stamp Duty you are going to have to pay on your purchase, even if your ex wife disposes of the property within 3 years.

Sorry.

Please don't forget to rate my answer, if I have assisted, so I may get credited for my time.

Kind Regards

Al

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