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Hi looking to swap houses with my Dad. Would it just be stamp duty and solicitors fees for expense?
And how far can we lower the price (market price) of both houses to pay less stamp duty.
By the way the houses are of similar value (zooplar website) cheers
and any other advice please
And how far can we lower the price (market price) of both houses to pay less stamp duty.
By the way the houses are of similar value (zooplar website) cheers
and any other advice please
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My uncle did something like this and I am sure he did not pay anything except the legal fee, (and that was small). If I can find out at the weekend I will.
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ok cheers Jim although im sure the government wont let me swap the houses for a £1 they will expect 1% of the market value. Although the market value is open to interpretation!
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You can gift each other your properties and no stamp duty is levied. The complications come if either estate breaches the IHT limit (currently £325k).
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You could consider the option of swapping the houses you live in, but retaining ownership of your own houses and not charging each other rent.
Unless you or your father plan to do major works on one of the houses, it would make sense. |
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could you escape Inh tax by saying you lost the house at a game of poker?
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You can not swap houses without stamp duty being paid. Stamp duty is paid on the value of a property when a sale /transfer of equity takes place.There is no getting around it.
You will also need a solicitor to register the properties. A few year ago if you swapped a house stamp duty would only be paid on the more expensive transaction. Is theree a monetary trade being made?. I.e Are you paying your dad /or is your dad paying you if one property is more expensive than the other. |
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No it will be a straight swap. Thanks for the responses.
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The Investor 10 Dec 17:14
You could consider the option of swapping the houses you live in, but retaining ownership of your own houses and not charging each other rent. Unless you or your father plan to do major works on one of the houses, it would make sense. does this not fall four of our mortgage contracts? |
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"fall foul"
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does this not fall four of our mortgage contracts?
If one, or both of the properties are mortgaged, then Stamp Duty is unavoidable. If both properties are owned outright they can be gifted and would be exempt from Stamp Duty. |
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who would decide on the market price for both properties? We are looking for a straight swap ie identical selling prices.
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Does any one know if I will need to make a deposit on the house swap. The mortgage I'll be taking with me will not change ie Will owe the same as I did before the swap. Both houses will have equity in them after swap.
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Need to apply to the lender in same way as any other house purchasen . Providing your income still supports the mortgage should be no problem. Survey will have to be done, and mortgage offer issued. Who is the mortgage lender?
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C&G
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