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Stupid Stamp duty... there goes another 5k...
https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#ex3
If you transfer or divide up jointly-owned property or land: unmarried couples and other joint owners
You don’t pay SDLT if 2 or more people jointly own property (as joint tenants or tenants in common) and you divide it physically and equally and own each part separately. But, if one person takes a bigger share, or all of the other’s share, and pays cash or some other consideration in exchange, you must tell HMRC. If the amount you pay is more than the current threshold, you’ll pay SDLT on it, see example 4.
Transfer the outstanding mortgage
Joint owners (this may include unmarried couples who are splitting up) may agree that just one of them will take over ownership of a property they bought together, including any outstanding mortgage.
In this case the person taking ownership will pay SDLT on the total chargeable consideration of the following (either or both), if it exceeds the SDLT threshold:
•any cash payment that one of the couple makes to the other for their share
•the proportion of the outstanding mortgage that belongs to the share of the property being transferredExample 3
A couple own a house equally together and:
•it’s valued at £400,000
•they’ve equity in the property of £300,000
•they’ve an outstanding mortgage of £100,000They transfer ownership so that one of them will have sole ownership of the property. The new sole owner:
•pays cash for half of the equity - £150,000
•becomes responsible for the other person’s half of the outstanding mortgage - £50,000The consideration for SDLT is £200,000, made up of the:
•cash payment
•50% share of the outstanding mortgageThe new sole owner pays £1,500 SDLT (0% of £125,000 + 2% of £75,000) and must tell HMRC by filling in an SDLT return.
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NotThamesWater
hoefla
Cheers @TW and @Greenbank useful stuff. Don't worry we will definitely be getting Proper Advice when the time comes and not just winging it on what someone on the internet said. 3 valuations is a good shout. We are keen to keep it as fair as possible. Stupid Stamp duty... there goes another 5k...