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Ask Jeremy Aldermartin Your Own Question
Jeremy Aldermartin
Jeremy Aldermartin, Solicitor
Category: Property Law
Satisfied Customers: 5929
Experience:  Dual qualified Solicitor and Attorney
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I have a single proprietor joint mortgage. The property deed

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I have a single proprietor joint mortgage . The property deed are in my friends name but we have joint mortgage liability. I’m looking to take my friend of the mortgage and move to single borrower and replace her name on the deed with mine. Property is worth £475k we have £370k mortgage. I would be also looking increase the mortgage to £400k under my name to repay her £30k. We have paid stamp duty upon purchase . Will stamp duty apply again due to transfer ?
Assistant: What steps have been taken so far? Has any paperwork been prepared or filed?
Customer: None yet. Looking at options
Assistant: Where is the property located?
Customer: London
Assistant: Anything else you want the Lawyer to know before I connect you?
Customer: no
Customer: replied 7 months ago.
I should mention we have purchased the property ( new build leasehold ) for £448k on 2017 when whe also paid stamp duty.
If her share amounts to only 30 thousand then stamp duty should not be payable as it is below the threshold.
I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.
Customer: replied 7 months ago.
I have £370k mortgage. I would be also looking increase the mortgage to £400k under my name to repay her £30k. We have paid stamp duty upon purchase . Will stamp duty apply again due to transfer ?Not quite. We bought the property for £448k with £358k mortgage and £90k equity ( £45k each). Subsequently we have taken further advance of £30k. All this time I was paying the mortgage as my friend wasn’t leaving in the property. The mortgage remaining is £370k. If we where to sell we would sell assuming value if £475k ( minus the cost of selling) and we should be able to walk away with £95k (=£475k-£370k -£10k cosy of selling ) so we would clear £45.5k each.If I was take on the mortgage , I would have to increase the mortgage to pay her off her share of equity of £52.5k (£475k-£370k current mortgage ) =£105/2 so £52.5k which is effectively her share.To that I would need to borrow max 85% of the property value so c.£400k of which I would pay her off £30k cash (from remortgage to my name ) and the rest (£22.5 )from savings.So effectively her share in property is £52.5k which i would have to pay her off . The change of name on the mortgage and change of name on the deed is considered transfer of equity so my question is would I have a stamp duty liability given I have to pay her of £52.k and transfer the £370k existing mortgage from joint names to just mine
No you would not have to pay stamp duty, the threshold for stamp duty is £125,000 therefore if the equity being transferred is less than that no stamp duty is payable and that is the case here. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.
Apologies I have looked into this further so because of the existing debt being transferred into your name or at least the half that is nominally in the name of the joint owner then the total consideration includes the cash transfer and the mortgage transfer meaning stamp duty is payable of £2,250. I hope this helps, if you can please accept my answer and rate me 5 stars (in the top right of your screen) then Just Answer will credit me for helping you today.
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