Stamp Duty Tax on Residential Home with Mortgage - Inheritance from Husband to Wife

[Cindyyyy]

Hi all,
I’m Cindy, I have lot of things going on after demise of my husband recently. Its quite tough to handle the current circumstances in managing the estates. My husband has inherited our main residential home, together with other assets (like company shares which I have discussed in previous discussions, savings and insurance) to me under the will as the sole beneficiary.

However, our main home (the one we as a family staying) still has mortgage to be paid off. He purchased this house 5 years ago and sold our previous house for a bigger one (the current house). The mortgage amount left for this house is almost around £400,000. I’m thinking to keep this house as we have lot of memories in past few years here and decided to use the amount received from Insurance payout as well as savings to pay all the remaining amount of mortgage, if its enough to cover. However, If its not enough, then I would try to remortgage the house and continue paying the monthly installment.

My first question is,
If in case I have to remortgage the house, do i need to pay Stamp Duty tax or any other form of tax payable?
My second question is,
If its a yes for the first question, do I just need to pay the Stamp Duty tax for the value of remaining mortgage (remaining amount left to pay) or I have to pay Stamp Duty tax for total house value overall?
My third question is,
Is it mandatory to remove my deceased husband name on title deeds & adding my name there ? Currently, his name is on title deeds as the sole owner as he bought it by his own.

I would highly appreciate your kind responses ?

 

[Newchodge]

Hi all,
I’m Cindy, I have lot of things going on after demise of my husband recently. Its quite tough to handle the current circumstances in managing the estates. My husband has inherited our main residential home, together with other assets (like company shares which I have discussed in previous discussions, savings and insurance) to me under the will as the sole beneficiary.

However, our main home (the one we as a family staying) still has mortgage to be paid off. He purchased this house 5 years ago and sold our previous house for a bigger one (the current house). The mortgage amount left for this house is almost around £400,000. I’m thinking to keep this house as we have lot of memories in past few years here and decided to use the amount received from Insurance payout as well as savings to pay all the remaining amount of mortgage, if its enough to cover. However, If its not enough, then I would try to remortgage the house and continue paying the monthly installment.

My first question is,
If in case I have to remortgage the house, do i need to pay Stamp Duty tax or any other form of tax payable?
My second question is,
If its a yes for the first question, do I just need to pay the Stamp Duty tax for the value of remaining mortgage (remaining amount left to pay) or I have to pay Stamp Duty tax for total house value overall?
My third question is,
Is it mandatory to remove my deceased husband name on title deeds & adding my name there ? Currently, his name is on title deeds as the sole owner as he bought it by his own.

I would highly appreciate your kind responses ?

Did your husband leave a will? Do you know the total value of the properties and insurances you have inherited? I very strongly recommend that you see a solicitor, at least for advice, if not to assist you for probate. Getting this kind of thing wrong can be very costly.

This is a foum for business owners and, while everyone is willing to help, you will only get opinions, not certainty, on here.

 

[Ozzy]

Hi @Cindyyyy , as mentioned this site is solely for business owners support and advice. As much as some may be able to give you their opinions, as your query is a personal finance matter it may be better suited to MoneySavingExpert forums.

 

[Cindyyyy]

Did your husband leave a will? Do you know the total value of the properties and insurances you have inherited? I very strongly recommend that you see a solicitor, at least for advice, if not to assist you for probate. Getting this kind of thing wrong can be very costly.

This is a foum for business owners and, while everyone is willing to help, you will only get opinions, not certainty, on here.

Thank you for your responses.
Yes, he did leave a will.
The value of property is around £750,000 & the insurance is £200,000.

 

[Newchodge]

Thank you for your responses.
Yes, he did leave a will.
The value of property is around £750,000 & the insurance is £200,000.

Then, definitely seek paid for legal advice, please.

 

[MikeJ]

But to answer your questions...

1) no, there's no stamp duty. There may be a small fee to arrange the mortgage, but it's not significant in this case.
3) It's in your best interests to get your name on the deeds. It'll make life much simpler in the long run. A good solicitor will sort this for you.

 

[Cindyyyy]

But to answer your questions...

1) no, there's no stamp duty. There may be a small fee to arrange the mortgage, but it's not significant in this case.
3) It's in your best interests to get your name on the deeds. It'll make life much simpler in the long run. A good solicitor will sort this for you.

Thank you..
Referring to the first question’s answer,
What I understood here is, even though our main home still has mortgage to pay (and I willing to continue paying it every month as I’m the beneficiary), I don’t have to pay any Stamp Duty tax?

Appreciate your kind responses ?

 

[Newchodge]

Thank you..
Referring to the first question’s answer,
What I understood here is, even though our main home still has mortgage to pay (and I willing to continue paying it every month as I’m the beneficiary), I don’t have to pay any Stamp Duty tax?

Appreciate your kind responses ?

Why are you so hung up on stamp duty?

 

[ethical PR]

Hi all,
I’m Cindy, I have lot of things going on after demise of my husband recently. Its quite tough to handle the current circumstances in managing the estates. My husband has inherited our main residential home, together with other assets (like company shares which I have discussed in previous discussions, savings and insurance) to me under the will as the sole beneficiary.

However, our main home (the one we as a family staying) still has mortgage to be paid off. He purchased this house 5 years ago and sold our previous house for a bigger one (the current house). The mortgage amount left for this house is almost around £400,000. I’m thinking to keep this house as we have lot of memories in past few years here and decided to use the amount received from Insurance payout as well as savings to pay all the remaining amount of mortgage, if its enough to cover. However, If its not enough, then I would try to remortgage the house and continue paying the monthly installment.

My first question is,
If in case I have to remortgage the house, do i need to pay Stamp Duty tax or any other form of tax payable?
My second question is,
If its a yes for the first question, do I just need to pay the Stamp Duty tax for the value of remaining mortgage (remaining amount left to pay) or I have to pay Stamp Duty tax for total house value overall?
My third question is,
Is it mandatory to remove my deceased husband name on title deeds & adding my name there ? Currently, his name is on title deeds as the sole owner as he bought it by his own.

I would highly appreciate your kind responses ?

Please speak to your solicitor they are best placed to advise you based on your personal circumstances.

 

[MikeJ]

Thank you..
Referring to the first question’s answer,
What I understood here is, even though our main home still has mortgage to pay (and I willing to continue paying it every month as I’m the beneficiary), I don’t have to pay any Stamp Duty tax?

Appreciate your kind responses ?

Stamp duty is payable when the property is transferred from one person (or entity, if it's owned by a company) to another. It's not payable when transferred between spouses.

 

[Cindyyyy]

Stamp duty is payable when the property is transferred from one person (or entity, if it's owned by a company) to another. It's not payable when transferred between spouses.

Thank you ?

 

[WaveJumper]

I am sorry to hear of your loss, things must seem pretty daunting at present. As already mentioned above I would also strongly recommend speaking to your solicitor. The one good thing here is, you say a will is in place a lot can depend on how this is structured so please seek that proper legal advice. Wishing you all the very best.