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Buying out ex partner, stamp duty implications.

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  • 25-04-2018 7:16pm
    #1
    Tonto67
    Registered Users Posts: 66 ✭✭


    Hi,

    Im looking for anyones experience with buying out an ex partners interest in a house.

    We bought for €220k, mortgaged €170K
    We have split and I am buying my ex out by remortgaging in my own name.
    We have agreed a value of €245k, mortgage balance is ~€165k
    I have mortgage approval for €166k and intend to pay her equity from savings,~€40k

    I'm running the numbers and want to assess the stamp duty implications.
    We were not married or civil partners, no kids, basically 2 people who bought a house in the eyes of the law as far as I can see.
    Im pretty sure there will be stamp duty to pay, Im wondering if it will be calculated on:

    A €40k (the cash sum I pay)
    B €122.5k (the half I don't already own)
    C €245k (full value of the house)
    D something else

    If anyone has any experience I'd appreciate if they'd share it with me.

    Thanks


Comments

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    #2
    godtabh
    Moderators, Science, Health & Environment Moderators Posts: 23,218 Mod ✭✭✭✭godtabh


    Isnt it going to be for the purchase price of the bit you dont own?


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    #3
    Tonto67
    Registered Users Posts: 66 ✭✭Tonto67


    godtabh wrote: »
    Isnt it going to be for the purchase price of the bit you dont own?

    I hope so, thats what I have budgeted for but it has been suggested that it might be for the full price because a new mortgage is being issued. An extra €1200 would sting badly.


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    #4
    Peregrinus
    Registered Users Posts: 26,511 ✭✭✭✭Peregrinus


    Stamp duty will be based on the value of the half-share that you are buying. The fact that you'll be financing this with a mortgage which will be charged on the half-share is ignored, just as it was ignored when the pair of you jointly bought the house, financing it with a mortgage charged on the whole house. Even if there is a mortgage involved, stamp duty is always calculated on the basis of the unmortgaged value of the property.


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    #5
    JimmyMW
    Registered Users Posts: 695 ✭✭✭JimmyMW


    Tonto67 wrote: »
    Hi,
    We have agreed a value of €245k

    I don't think you can just agree a figure, I think you may need to have a valuation done to clarify this, especially when the stamp is directly related to this figure, just something to look into.


  • Options
    #6
    Tonto67
    Registered Users Posts: 66 ✭✭Tonto67


    JimmyMW wrote: »
    I don't think you can just agree a figure, I think you may need to have a valuation done to clarify this, especially when the stamp is directly related to this figure, just something to look into.

    The figure is based on 2 valuations, one high one low, we split the difference.


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