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Help to Buy - stamp duty
Grandad99
Posts: 141 Forumite
Found this information
"You may also need to pay stamp duty on your annual rent. This calculation is based on Net Present Value, which can get quite complicated.!
In simple terms, if the rent you'll be paying over the term of the lease exceeds £125,000, you'll need to pay 1% for the amount you exceed the threshold by.
For example:
A 30-year lease at £500 rent per month totals!£180,000 (360 payments of £500)
The stamp duty threshold is £125,000, so £180,000-£125,000 = £55,000
1% of £55,000 equals £550, so this is the sum you'll need to pay"
Is the £550 paid at inception or spread by adding to rent payments?
"You may also need to pay stamp duty on your annual rent. This calculation is based on Net Present Value, which can get quite complicated.!
In simple terms, if the rent you'll be paying over the term of the lease exceeds £125,000, you'll need to pay 1% for the amount you exceed the threshold by.
For example:
A 30-year lease at £500 rent per month totals!£180,000 (360 payments of £500)
The stamp duty threshold is £125,000, so £180,000-£125,000 = £55,000
1% of £55,000 equals £550, so this is the sum you'll need to pay"
Is the £550 paid at inception or spread by adding to rent payments?
0
Comments
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This is applicable to Shared Ownership, not particularly to 'Help To Buy' which the Government thoughtlessly tagged everything - Equity Loan, Shared Ownership, ISA etc.
The Government likes its money upfront at the point of purchasing the property, or staircasing to a greater share of ownership.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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