Stamp Duty: 2 friends buying out a 3rd

[Janice]

Hi There,
I bought a house with 2 friends (all first time buyers) in Sept 03 before they got rid of stamp duty for first time buyers.

One friend wants out and 2 of us are going to buy her out of the property but we are unsure of our stamp duty liabilities.
2 of us will still be owner occupiers as we have been for the last 2 years.

I read something posted about changing mortgage but Im not sure if it applies to us as we may stay with the same vendor:
"There is also stamp duty of €1 per thousand on the mortgage deed if the mortgage is in excess of €254 000, subject to a maximum of €630. For example, the cost of transferring a €300,000 mortgage would include €300 stamp duty on the mortgage".

Any advice welcome;

Thanks
J

 

[mf1]

It may be that the figures are such that no stamp duty would be payable anyway i.e. under E127K. Or if neither of you have purchased any other property Revenue may treat you both as ftb's anyway.

" A person who obtained ftb relief on the purchase of an interest in a house would not be precluded from obtaining ftb relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period. "

On the mortgage, whether stamp duty is payable depends on a few issues. If you are sticking with same lender then the Transfer Deed will absolve third party from mortgage with other two becoming entirely responsible so there is no new Mortgage Deed. But if remortgaging with another lender, then if mortgage is over 254K stamp duty will be payable on the new mortgage at 0.1%.

mf

 

[Janice]

Hi,
It is above the 127 but it looks like the below would apply to us,
if we are able to claim current ftb relief, unlike the reduced rate we paid at the time.

" A person who obtained ftb relief on the purchase of an interest in a house would not be precluded from obtaining ftb relief on a subsequent purchase of another interest in the same house provided that person has not purchased another house or part of another house in the intervening period. "

On the mortgage, whether stamp duty is payable depends on a few issues. If you are sticking with same lender then the Transfer Deed will absolve third party from mortgage with other two becoming entirely responsible so there is no new Mortgage Deed.

We will most likely stick with current lender,

But if remortgaging with another lender, then if mortgage is over 254K stamp duty will be payable on the new mortgage at 0.1%.

It would be so thanks for that warning,

Thanks a million,
J

mf[/QUOTE]