My ex-partner & I own two properties, one is our main home and the other is a buy-to-let. We own both properties jointly and have a joint mortgage on both.
The plan is for me to take on ownership of and the mortgage for the buy-to-let property and to move into it as my main home. My ex-partner will take on ownership of and the mortgage for our former main home.
Our main home is worth more than our buy-to-let property and will make a lump sum payment to compensate me for the difference.
James, you are not married so the SDLT exemption for separating couples is not available to you. The SDLT position depends on the scope of the partition exemption in para 6 Sch 4 FA 2003 which is a matter of some uncertainty at the moment where joint interests in more than one property are concerned.I would hope that the SDLT was restricted to the value of the mortgage liabilities assumed plus the cash equality payment but this is a matter on which you should take detailed advice from your solicitor dealing with the conveyancing and SDLT return.
“Where two or more people are jointly entitled to land (whether a single chargeable interest or more than one chargeable interest) and there is a partition or division of the land this is not treated as an exchange.”