Additional rate SDLT

Ed-1

Does buying a leasehold property for more than £40,000 where the lease has more than 21 years to run attract additional rate SDLT if it's not a replacement for a main residence (current property owned in full worth more than £40k)?

SDLT_Geek

Yes. The leasehold interest acquired is not “subject to a lease” and so Condition B is satisfied. By the sound of it, so are the other conditions.

Ed-1

SDLT_Geek wrote: »

Yes. The leasehold interest acquired is not “subject to a lease” and so Condition B is satisfied. By the sound of it, so are the other conditions.

If you bought the freehold of a property subject to a lease then Condition B is not satisfied?

Ed-1

00ec25 wrote: »

then you would be buying an additional freehold property

Yes - different scenario to OP. Trying to grasp the legislation.

SDLT_Geek

Buying a freehold of a dwelling subject to a long lease is not liable to the higher rates, even if the price is £40k or more. Of course the freehold only gives you a right to receive the rent, which for a long lease is often not a large sum, perhaps £100 a year.