Transfer of equity during re-mortgage.

[AgentJ]

Three years ago I purchased my first home.  Although I have been married for 12 years, and for no particular reason, the mortgage and deeds are in my name only.

I am now in the process of remortaging and wish both the new mortgage and property to be in joint names.

Are we now libel to pay stamp duty and if so how would this be calculated?

[Maud]

The names have to be changed on the Entry on the Land Register and on the mortgage. You will have to decide whether to hold the property as joint tenants or tenants in common (if you are unsure of the difference please say and I will post a brief description of each). The Revenue have to be notified. The company with whom you are remortgaging will insist upon doing all of your work in this as well as their own, for which they will make a re-registration charge of about �200 + VAT (the Land Registry fee is �40 which is included in this). Some companies seem to be also insisting that the person  who is taking on the mortgage and to whom the gift is being made must appoint there own separate solicitor, so be prepared for this. As no money is changing hands there is no Stamp Duty or other tax of any sort to pay beyond the VAT on the solicitors bills.

[AgentJ]

Is that true even if we are realising equity in the property?

[AgentJ]

*releasing*

[Maud]

If by "releasing equity" you mean that the new mortgage is smaller than the one which you are abandoning, then yes, my answer states the position correctly. If you are doing something else would you kindly describe what it is, please, so that I can have a re-think.

[Maud]

.............new mortgage is larger or smaller than............

[daz944uk]

I am in a similar position where I purchased a property 3 years ago and am now trying to remortgage with a new lender and add my fiancee to the mortgage and transfer equity as well. After 3 months down the line with the process, the solicitors that were appointed by Nationwide, the new lender are telling us that we have to pay stamp duty on 50% of the outstanding mortagage amount. Exactly what are the rules on this as I am telling both the Nationwide and the solicitors that they should have made us aware of this at the very beginning....?

[AgentJ]

The new mortgage is larger.

Having taken further advice it would seem that stamp duty is payable on half of the existing debt.

All in all. a lot of money to pay simply for not taking out a joint mortgage in the first place. :-(

This seems very unfair to me, I understand why this situation exists, but think its grossly unfair for these charges to be levied against anyone who was married at the time of the initial purchase.

In summary, if we had simply applied for a joint mortgage when we initially purchased the property we would not now be faced with a �1000 bill for stamp duty.