Stamp Duty when buying one party out

B

batty

Registered User
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Hi all, I've done a search on this but I can't seem to get a definitive answer. Maybe all you experts can help so here goes;

person A & B hold a joint motgage on a property valued at approx 300k with a mortgage of 210K
person A wants to buy person B out of property with a mortage of 250k

Is person A liable for stamp duty?

Ta
 
Probably need some more info
1) Was person A and person B first time buyers ?
2) Was there stamp duty paid initially ?

There is a similar discussion going on at the moment here which should give some insight
 
elcato said:
Probably need some more info
1) Was person A and person B first time buyers ?
2) Was there stamp duty paid initially ?

There is a similar discussion going on at the moment here which should give some insight
Click to expand...

Thanks for this, The house was a new house so there was no stamp duty paid initially, A & B were both first time buyers.

The situation is that my brother wants to buy his partner out of their house. My own opinion is he is that the EA has overvalued the house so thereforeif he buy's the Ex out based on the valuation then he is giving his Ex too much money. Think he'd be much better to sell. If he has to pay full stamp duty then the monies really wouldn't add up.
 
Hi Batty,

I have just been in this situation in that I have just been bought out by someone I owned an apartment with. We were both first time buyers and we bought off the plans. She bought me out and was not liable for stamp duty as she was effectively buying my share of the same property which was her PPR so it was looked on that she was still a first time buyer. This was all checked with solicitors etc.

Sweet Pea
 
And if your were not FTB's ??

Would the same still apply as it would be your PPR??
Thanks!
 
No, the only reason my friend was not liable is that her first time buyer status was retained as she was effectively buying a share in the same property and not buying an entirely different property.
 
Thanks for the responses.

As I said before I was hoping that he would have to pay stamp duty as i think he's much better to sell & start again.
 
batty said:
Thanks for the responses.

As I said before I was hoping that he would have to pay stamp duty as i think he's much better to sell & start again.
Click to expand...

Why do you think estate agent has valued it too high? In a situation like this I would advise getting a paid for valuation from 2 maybe three estate agents( no freebies) after telling agents exact purpose ..i.e we want a valuation so that we can agree a sale between the two of us... then the average of the two or three valuations can be the sale price.

In a falling market your brothers ex may be very happy to sell to him rather than wait for an independent buyer...equally your brother gets to keep his house without paing full estate agents fees for sale legal fees for a sale and purchase stamp duty ...

If managed correctly this could be a win win situation for both brother and ex.
 
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