Stamp duty surcharge

Tom99

Fixil9 wrote: »

Sorry should of added that the flat below has to pay me they same amount in rent for the lease on their property, don’t suppose that makes a difference though.

Confusing. Who occupies this flat that you and your brother own?

davidmcn

Fixil9 wrote: »

Sorry should of added that the flat below has to pay me they same amount in rent for the lease on their property, don!!!8217;t suppose that makes a difference though.

Ok, it sounds like you and the other flat jointly own the freehold of your block. But if you own the leasehold interest then that counts as a dwelling for the purposes of the SDLT surcharge (assuming your share is worth more than £40k).

In short, your solicitor's right.

SDLT_Geek

The wording of Conditions B and C confuses a lot of people. The condition for the surcharge: "the dwelling is not subject to a lease which has more than 21 years" does not give an escape route from the surcharge on the basis that a property happens to be leasehold.


It is intended to give an escape route for a case where the interest bought / held does not carry the right to occupy because it is "subject to" another lease. It is looking to excuse those whose interest is effectively just a reversion with a right to receive a ground rent (rather than an interest that one could buy and then live in the property / receive the full rent).

Fixil9

My brother still live in the property

SDLT_Geek

OP, I wonder if you have owned another property (or a share in one) which you have lived in and since disposed of? Sometimes people's property owning history can save them when they are buying a property to live in, completing the purchase by 26 November 2018.

00ec25

Fixil9 wrote: »

Read condition C

yes, read condition C, it is written in the negative....

Fixil9

I was hoping to complete a transfer of equity before my new purchase completed but it!!!8217;s not looking like it will happen in time, which means In the eyes of my solicitor means I have to pay an extra £6750 stamp duty them claim it back, was just hoping I could find a way of not having to pay & claim.

Tom99

Fixil9 wrote: »

I was hoping to complete a transfer of equity before my new purchase completed but it!!!8217;s not looking like it will happen in time, which means In the eyes of my solicitor means I have to pay an extra £6750 stamp duty them claim it back, was just hoping I could find a way of not having to pay & claim.

[FONT=Verdana, sans-serif]You could probably transfer your 50% beneficial interest in the flat to your brother fairly quickly with a deed of trust.[/FONT]
[FONT=Verdana, sans-serif]Did you previously live in the flat? I think that's required if you want a refund.[/FONT]

Fixil9

Yes I lived there until April 2016 then moved into rented accommodation.

Fixil9

What is a deed of trust ?
How quick is fairly quick?
& does this not need to be done some time before the completion of another property ( eg 1 year 2 years ?)