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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5143
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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My sister and I bought a property 11 years ago. I left the

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My sister and I bought a property 11 years ago. I left the country for a while then moved to London after 6 months of living in the property with her. I have not paid a penny since and she is happy in the home with a family. I am now starting my own family and have a offer accepted on a house. I have been told that I will have to pay an additional 3% SDLT even though I have never really lived there. My sister is not in a position to remortgage.
Will I have to still pay if I take my name of the Deeds? Should I pay and try claim a refund within 3 years if my name comes off the mortgage? Do I have to pay the duty in the first place?
Please help as the stamp duty is 24000 and we dont have that money.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.

Thank you for your question..

You say you and your sister jointly bought a property 11 years ago. As you are a registered owner of that property at present, any additional property that is registered in your name would attract the extra 3% stamp duty. It is ownership of the property and not whether you lived in it or not that determines whether you pay the extra 3%.

You are suggesting what if you were to take your name of the deeds .. what is your plan .. sell your share to your sister?

By removing your name as a owner from the land registry records before you embark on your purchase of another property, you would avoid paying the extra 3% SDLT. If you are short of funds then it would be wise to remove your name by transferring your share to your sister before your next purchase. You will have to pay the extra stamp duty in the first place.

More information on this can be found here .. look at the flow chart in 1.1

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 1 year ago.
Thank you for your swift reply.To confirm - If I call the mortgage company and transfer all my share to my sister then, I dont need to pay the 3% extra?
Does it make a difference if the mortgage was interest only?
Once my name is ***** ***** I declare this to the mortgage company?Thank you again

Thank you for your reply.

You need to document transfer of your share in the property to your sister. You should not only contact the mortgage company but also make sure the transfer is registered on the title deed of the property. You may need help of your solicitor to do that. Please communicate in writing for future reference.

It makes no diffference whether the mortgage is interest only or repayment.

Once you have carried out the above then you would not have ownership to another property and you can declare this to the lender and your conveyancing solicitor.

Your new purchase in this case will not be subject to the higher rates of SDLT as you would own one property only after the transaction.

I hope this is helpful and answers your question.

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