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Mortgages, lbtt and marriage

1 reply

Firstposter · 11/06/2019 10:00

Hello folks, having had another thread on here in the relationship forum im looking for some Scottish advice!

My fiance and I have been together for 5 years. We both had property when we met. About two years ago my other half sold his flat and bought a house a month after we got engaged with the view that house would be our family home. At the time he was living in my flat.

We are getting married next year and we have move into the family home. I've now realised that my name isn't on the deeds to the house and at the time we were advised to do it this way by our solicitor to save on tax/stamp duty.

The same solicitor is now saying we will have to pay an additional 4% on both properties for me to be added to his deeds and him to mine?does this sound right? I'm a bit worried I'm in a vulnerable situation by not being on the deeds but my solicitor seems very laid back about it... Any advice?

OP posts:
Outnumb3red · 12/06/2019 00:21

LBTT is payable in relation to transfers of title and therefore so is ADS which is the 4% your solicitor is referring to.

When transfers are carried out for 'no monetary consideration' then the consideration is based on the value of debt that the new party to the title is taking on. So if there are mortgages on the property then the 4% is based on half of the existing mortgage debt. If half of the debt is no more than £40k then there is no LBTT/ADS liability.

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