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Joshua, Lawyer
Category: Property Law
Satisfied Customers: 28925
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I have a property I am selling which is my main residence.

Customer Question

I have a property I am selling which is my main residence. I'm buying a new main residence. I am also on the mortgage for my brothers flat. Please can you advise if this makes me liable for increased SDLT?
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: no
JA: Where is the residence located?
Customer: UK
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: no
Submitted: 11 days ago.
Category: Property Law
Customer: replied 11 days ago.
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Customer: replied 11 days ago.
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Expert:  Joshua replied 11 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

  1. May I confirm under what circumstances you are "on the mortgage" of your brothers flats please? are you a guarantor on the mortgage or are you a party to the mortgage?
  2. do you have any financial interest in your brothers flat? are you a joint legal owner of the flat?
Customer: replied 11 days ago.
Hello, yes, sorry it probably wasn't very clear. I took a mortgage out with him many years ago as he count afford it alone at the time. For many years however has paid the mortgage alone. We have a joint mortgage so we are joint and severally liable for payments. He has used it as his main residence but he is now moving to Spain so plan is to let it out.
2. I guess when/if he comes to sell it I would have a proportion of the proceeds to reflect what I paid in many moons ago. We have no document saying so though, certainly nothing legal.
Expert:  Joshua replied 11 days ago.

thank you. So from what you say, you will also presumably be joint legal owners of the property. do you believe your financial interest in that property would amount to more than £40,000 please?

Expert:  Joshua replied 11 days ago.

I'm following up on the above. Without some further information from you as above, I am limited in what I can say on the matter but in the hope it is helpful nonetheless, I will provide you with the following broad answer. If you are able to kindly provide me with the above further information or if you have any further questions generally, I will be delighted to expand on the following - please just reply back to me in this case:

Notwithstanding the above, in general terms the requirements in respect of avoiding the second home charge for SDLT is that at the time you purchase a new property, you must not own another interest in a residential property worth more than £40,000. however, if you do own such ann interest, you will still not be liable for the 3% surcharge if in buying a new property, you are replacing your main residence. Accordingly, on the basis that you are selling your main residence and buying a new one in replacement, you would not be liable for the 3% surcharge despite potentially owning another interest in a property which is not your main residence which may be worth more than £40,000

I hope the above is of some assistance but if you have any further questions, please revert to me

Customer: replied 11 days ago.
Hello Joshua, my apologies I didn't reply to you on your question. My interest would over £40,000 on the other residential property. As I read your answer though you're saying if I'm swapping my main home for another main home then I wouldn't be liable for the extra SDLT. Best wishes, Sally