Ben owns his main residence and lives there with his partner Holly, who already owns a buy-to-let dwelling. Ben wants to add Holly to the title and mortgage of their main residence.
The chargeable consideration will be based on the value of the existing mortgage plus any cash sums paid. The existing mortgage on the dwelling is £300,000. As no cash is being paid, the chargeable consideration will therefore be a half share of the existing mortgage, £150,000.
LBTT will apply on the value of the half share of £150,000. ADS will also apply on the amount of £150,000 as Holly will now own more than one dwelling and she is not selling or disposing of her previous main residence.
Information on debt as consideration can be found in LBTT2003.