CeMAP MRT2 Transfers, Porting, Overpayments & Redemption question: Using SDLT residential rates

CeMAP MRT2Transfers, Porting, Overpayments & Redemption

Jade owns a house in England worth £300,000 with a £230,000 mortgage. She adds her partner Sam (they are not married) to the title as an equal owner, and he becomes jointly liable for the mortgage. Sam pays no cash and owns no other property. Using SDLT residential rates from 1 April 2025, what is Sam's SDLT position?

A None: transfers between partners who live together are always exempt
B £2,300: 2% of the £115,000 share of the mortgage he takes on
C None: the £115,000 of mortgage he takes on is below the £125,000 threshold
D £500: SDLT on half the £300,000 value of the house

Show the answer and explanation

Answer: C. None: the £115,000 of mortgage he takes on is below the £125,000 threshold

Taking on a share of an existing mortgage is chargeable consideration (gov.uk, SDLT: transfer ownership of land or property). For a half share, consideration = 50% × £230,000 = £115,000, below the £125,000 nil-rate band in force from 1 Apr 2025, so no SDLT is due. The exemption for partners applies only to spouses or civil partners on divorce or dissolution, 2% applies only above £125,000, and SDLT is based on consideration given, not on market value.

Common mistake

Basing SDLT on the value of the share rather than the mortgage taken over.

Practise more MRT2 Transfers, Porting, Overpayments & Redemption questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Transfers, Porting, Overpayments & Redemption CeMAP MRT2practice questions & mock exams

Related CeMAP MRT2 questions

Raj is downsizing. He owes £220,000 on a fixed rate with a 3% ERC and a 10% a year ERC-free overpayment allowance, none of it used this year. He ports but needs only £160,000 on the new home, so repays £60,000. What ERC applies?Stella takes a £280,000 bridging loan to buy her next home before selling her mortgage-free current home. Interest is 0.75% a month (simple) on the £280,000 advance, rolled up for 6 months, and a 2% arrangement fee is added to the amount owed. Her current home then sells for £310,000 after costs. How much is left after the bridge is repaid?Ruby, 68, needs £60,000 over the next 10 years. Plan 1: take £60,000 now as a lump sum. Plan 2: a drawdown lifetime mortgage taking £30,000 now and £30,000 in 5 years. Both roll up at 6% a year, compounded annually, with no payments. Roughly how much lower is the debt after 10 years under Plan 2?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original practice material mapped to the published CeMAP MRT2 learning outcomes. Independent, not endorsed by Walbrook (formerly LIBF). Verify figures and rules against current guidance before relying on them.