LBTT

[user1487194234]

Does anyone know about this.
If somone is buying c owner out of a property that has a mortgage,which is being paid off and a new mortgage taken out,is LBTT paid on the value of the mortgage that is being redeemed
Have looked at the website but it is tortourous

I don't think so. I'm sure you can add/ remove parties from the mortgage without paying LBTT.

I would agree with @titsintiers, you aren't really selling and buying the property, just adjusting the titles and releasing equity by remortaging?

Would this apply?:

LBTT3006 - Transactions in connection with a divorce
LBTT guidance on the exemption of a land transaction which is the result of a court order or agreement between parties in connection with a divorce.

This exemption applies when a couple gets divorced, there is a nullity of marriage or a judicial separation and their property including any land is split between them. The exemption applies to transactions under court orders and agreements between the parties.

They are not married
But thanks very much
I think if the party taking on the whole title takes on the existing mortgage then half of the existing mortgage is consideration for LBTt
But am not sure what happens if original mortgage is paid off and a new mortgage taken out

Either their family law solicitor (or conveyancing solicitor within the practice) would be able to confirm for definite.

I think that is the problem
2 solicitors saying 2 different things

It might be cheaper for them to get married and divorce!

It's not good when you get conflicting advice from those who are meant to be experts.

To be fair the LBTT website is terrible