UK Property Law
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Could you please clarify if the property will be put in your son's sole name? (I am guessing that this will be the case, as only his name will be able to go on the Deeds if he is having a Mortgage in his sole name).
Could you also confirm the exact amount of cash he would be paying for the property?
There is no SDLT on any transfer pursuant to a court order and hence, it doesn’t matter what the value of the property is, if it’s being transferred into your sole name as part of the divorce proceedings.
however, if you transfer part of the property into your son’s name, he would be liable for SDLT on the price he pays if he is paying an amount of money which is over the threshold. The current zero threshold is £125,000 provided this is going to be his primary residence otherwise he pays 3% if it is a second home.
Purchase price of property
Rate of Stamp Duty
Buy to Let/ Additional Home Rate (from April 2016) *
£0 - £125,000
£125,001 - £250,000
£250,001 - £925,000
£925,001 - £1.5 million
Hence, if he was paying £600,000, and he is not living in the property, he would pay 8% of the amount of money he is paying for that share. The fact that he may be your son is not relevant.
There is no legal reason why you cannot have as many people on the mortgage as you wish. That is up to the lender. However the lender will not normally allow anyone to be on the title deeds unless they are also a party to the mortgage.
Unfortunately, the rates have not posted properly. In each band, the lower rate is the rate for a first home in the higher rate in each band is the rate if it is a second
If your son and daughter-in-law by a share of your house, they pay stamp duty at the buy to let rate and the purchase price of the share they are buying.
On £600,000, the stamp duty would be 8%.
The same would apply if he was buying his sole name. How to mitigate or pay less stamp duty, get divorced. Stupid, but here is the explanation
In the deeds, would reserve yourself the right to live in the house for life and that would prevent them trying to sell it from underneath you.
She would probably still be entitled to a chunk of the property if they split up as indeed he would be able to get a chunk of her property but if you have the right to live in the property for life noted in the deeds, she would not be able to force a sale.