Help! Another stupid question from me ... would we pay stamp duty on this transaction?

[Anglepoise]

Quick summary: housemate and I co-own a flat. I paid the deposit, so own the first 10% of the equity, then the rest is split equally between us.

I am in the process of moving out with DH and there is a possibility that housemate's brother will buy my share of the property. If they do this then they will have to get an entirely new mortgage as our current lender isn't prepared to do it for various reasons.

Would this therefore count as a transaction where they have to pay stamp duty if the overall value of the property (not just my share) is over £250,000? Or does it just count as a remortgage with a twist?

Since it is likely to be around a total value of just over £250,000, this makes quite a big difference!

Many thanks

There's an explanation here about it at the bottom Looks like yes since new name being added to deeds.

Cheers - just been Googling transfer of equity (which I think this is) to try to work it out.

I had no idea you paid 1% stamp duty over £125,000 but think we still avoid the 3% over £250,000. My brain is bleeding and it's time for bed!

No I think you do effectively sell it so would be liable. You could see a solciitor(paperwork would need doing regardless) and ask them.

But we're only selling half of it I think. Yeah, we'll need to see a solicitor at some point, but need to agree a price first.

Well, YOU wouldn't pay it, as you are selling. But I imagine he would. He needs to ask a solicitor.

You own 55% so why not sell him the half share 50% and your flatmate half of the 10% deposit (ie 5%) so they end up with equal shares and his bit may then fall under the threshold as she will be buying 5% and she is already on the deeds. Hope this make sense.

Yes. If you think of it like this it doesn't sound so unfair. You only own half of the property. So you personally have only ever paid half the stamp duty. He is selling. You are now buying the other half of the house and clearly will need to pay for the other half plus the stamp duty.

Sorry not you. I meant the buyer of the other half! Misread OP sorry.

I don't quite own 55% though - I own the first 10% and then half the remaining 90%, which I agree looks like 55% but actually works out at something like 67% if you do the sums (which I have, incessantly!), because it's 10% of the total value (because the deposit I paid was 10% of the total purchase price) plus half the equity after mortgage etc has been paid off.

Bring back communism!

Right I see (I think), would your housemate be interested in increasing her share though.

I'm not sure tbh, though I think that stamp duty would be payable on the whole transaction rather than just bits of it anyway. I think we probably do need a solicitor, I was just wondering if there was one wandering around here!

For anyone else searching on this, this is quite a useful article (though our situation is a bit more complicated).

Thanks for the replies