Shared Ownership - Staircasing

ironman1

Reading back over previous posts and going onto the mentioned link, am I right in thinking if we only staircase to 80% we will avoid, for now, the 2k odd Stamp Duty fee? Also would this be advisable considering we are looking to move in the next two years anyway, rather than 100%?!

kellyt86

ironman1 wrote: »

Reading back over previous posts and going onto the mentioned link, am I right in thinking if we only staircase to 80% we will avoid, for now, the 2k odd Stamp Duty fee? Also would this be advisable considering we are looking to move in the next two years anyway, rather than 100%?!

If you are looking to move in two years and the whole point is it will be easier to sell as 100% rather than shared ownership, then don't see the point in staircasing to only 80%.

My HA only lets staircasing be done in 25% blocks (so you could go to 75% and then to 100%) but with all the cost associated with it eg remortgaging fees and legal fees it seems pointless if you could go all the way to 100% but its just 2k of stamp duty holding you back.

Could you maybe borrow the stamp duty from a family member? Or maybe if possible wait a few months and save like mad, until you've got the stamp duty?

ironman1

Yeah I see your point, but even if it was to only 75% and we move in the next year or so wouldn't that be a better option? We can still sell at 75%, a neighbour who owns 50% of their identical property has just sold, the whole point of buying more shares is to put more into the mortgage and cut down the rent side really. Not so much about selling the place.