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Concessionary purchase and stamp duty not family!
Annasty
Posts: 5 Forumite
Hi, could anyone please help?
We are buying our house from our private landlord. As we can’t actually afford it at the moment they have agreed to let us buy it for £900k with a further £250k to be paid within 24 months.
They will take a 2nd charge on the house until this debt is paid. My question is how we deal with stamp duty? Any help gratefully received!!
We are buying our house from our private landlord. As we can’t actually afford it at the moment they have agreed to let us buy it for £900k with a further £250k to be paid within 24 months.
They will take a 2nd charge on the house until this debt is paid. My question is how we deal with stamp duty? Any help gratefully received!!
0
Comments
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This isn't a concessionary purchase - you are buying the property for £1.15M. It's just that the current owner is lending you £250k of the price.
Stamp duty will be based on the price paid: £1.15M.
Just think of the landlord as a kind of mortgage/ secured loan company.0 -
the completion date for the purchase will be the date you become the owners of the property, that will be the date you make the initial 900k payment and the chargeable consideration is £1.15M so you will pay £58,750 in SDLT on that date (assuming the property is NOT subject to the higher rate)Hi, could anyone please help?
We are buying our house from our private landlord. As we can!!!8217;t actually afford it at the moment they have agreed to let us buy it for £900k with a further £250k to be paid within 24 months.
They will take a 2nd charge on the house until this debt is paid. My question is how we deal with stamp duty? Any help gratefully received!!
what you are doing is what is called "staged payments"
read the example here:
https://www.gov.uk/guidance/stamp-duty-land-tax-the-amount-used-to-calculate-whats-payable
the total purchase price 1.15M has been agreed at the outset, the fact the payment is split is irrelevant for SDLT purposes. There is no uncertainty about how much will be paid (so it is not a "deferred payment") and it certainly is not a "concessionary" purchase0
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