New partner buying ex out of property

[iloveholidays]

My new partner is looking to buy my ex out of our house. I currently own my property with my ex and he contributes towards the mortgage.

My partner would like to buy my ex out and I have a couple of questions.

1. Would this be a transfer of equity from my ex to my current partner or a sale and purchase

1. Would the stamp duty be calculated on the full value of the house of my ex partners 50%

It’s so confusing!!! My partner has had an offer on his house today so looking to move forward but just trying to get my head around it before instructing a solicitor.

Thank you

Anyone know please??

1. It would be a transfer of equity

1. Stamp duty would be calculated on 50% of the house value. Providing he has no other properties, the first £125k is at 0%

Thank you so much for responding.. this is what I thought from googling a number of months back but after trying again the other day i was thinking it would be an entire sale and repurchase!
Thanks again - much appreciated!

Wouldn't be a transfer of equity (which is a transfer of ownership with the mortgage staying in place - usually with one being removed from the mortgage).

The lender will not, IME, agree to one borrower being substituted for another. You'll have to take out a new mortgage and repay the old. I don't know how that would affect stamp duty. Any transfer pursuant to a court order made on divorce is exempt from stamp duty, but the court cannot order transfer to the new partner.

I’m trying to remember what we did as my DH replaced my ex on our mortgage. It was a long time ago but it definitely wasn’t the same as purchasing from scratch.
Our house was under the stamp duty threshold so can’t comment on that.
But I’m fairly sure we just applied for a mortgage and then a solicitor just arranged for my ex’s name to be taken off the dress and my DH’s added on.
My ex had to sign something and return it to my solicitor. I can’t remember what exactly but it was all very straightforward.

I’ll see if I can fish out our old paperwork later x

*deeds not dress

Thank you all - it’s so complicated. Need to get a solicitor in place but was keen for my partners house sale to progress!

Anymore information would be appreciated!!

Can't you get your partner to ask the solicitor who is dealing with his house sale?
This would be logical as it's your partners money from his house sale that's potentially going to be used.
Surely his solicitor can provide some appropriate advice.

Thank you. That is the plan - he only accepted an offer on Friday so hasn’t progressed much yet.

I spoke to a mortgage advisor today who thinks we maybe able to just do a transfer of equity and transfer names on mortgage although sounds far too simple to be true! Need to call mortgage company once my partners sale progresses I think. Thanks for your comments.

I've known lenders to agree to remove one of two joint lenders from a mortgage, but never to substitute one lender for another.

Yes the mortgage advisor has it right (I'm also a mortgage advisor - however on maternity leave at the moment).

Its quite a simple process, your mortgage advisor and solicitor should be able to handle everything for you.