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Shared Ownership Stamp Duty

HI,

I have bought a shared ownership bungalow. I own 75% and the local borough own the other 25, and was told that we would never be overed a full 100%, as it is for over 55s. We paid 75% of 297000. I thought we would only pay stamp duty for what we paid. Our solicitor said no, we have to pay the full amount which has worked out to 4875. Is this correct? This is a new bungalow. Thank you

Comments

  • SDLT_Geek
    SDLT_Geek Posts: 3,049 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    You have a choice whether to pay SDLT on the full stated market value or on the amount paid at the outset. SDLT on £222,750 would be £1,955.


    It can be advantageous to elect to pay on the full stated market value when:
    (a) The buyer expects to staircase to over 80% and expects values or rates of SDLT to rise.
    (b) The buyer is a first time buyer.
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    as the geek says, for SO you make a choice at the point you first buy it.
    Either: Market value election
    Or: pay in stages ("staircase method")

    Having made that choice you can't change it later, so are you still in the process of buying or have you completed your purchase (and thus legally "bought")?

    read this:
    https://www.gov.uk/guidance/sdlt-shared-ownership-property
  • Hi,

    No the solicitor knew the details so fool that I am just thought he would do the right thing. I emailed him straight away to tell him that I thought I had paid the wrong amount, he answered back that it was correct. So lesson leant, but leaves a bitter taste in my mouth as we could be 3000 pounds better off, and living off pension it would have helped.
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