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Stamp duty on staircasing
OliviaNB
Posts: 2 Newbie
Hi,
We bought a shared ownership property in 2016, a 25% share of a £572,500 2 bedroom flat in London. We had the flat valued last year as we were considering staircasing and it was valued at £650,000. We decided to defer as we felt that stamp duty was prohibitive to buy a 100% share as we do not intend to remain in the property beyond 2-3 years.
We are now considering buying an 80% share as it will not be eligible for stamp duty. Is this correct?
Our housing association will purchase the property off us if we fail to sell it at an 80% share after ~8 weeks, in order to market it at a more affordable lower share. Does anyone have experience with similar schemes and whether we would be eligible for any stamp duty at this stage? What would the total stamp duty be if we did purchase 100% at £650k?
Basically, there is no way we would consider staircasing if we have to pay the full stamp duty as we plan to move in 2-3 years so the cost of stamp duty would not be offset by savings from rent.
Thanks!
Olivia
We bought a shared ownership property in 2016, a 25% share of a £572,500 2 bedroom flat in London. We had the flat valued last year as we were considering staircasing and it was valued at £650,000. We decided to defer as we felt that stamp duty was prohibitive to buy a 100% share as we do not intend to remain in the property beyond 2-3 years.
We are now considering buying an 80% share as it will not be eligible for stamp duty. Is this correct?
Our housing association will purchase the property off us if we fail to sell it at an 80% share after ~8 weeks, in order to market it at a more affordable lower share. Does anyone have experience with similar schemes and whether we would be eligible for any stamp duty at this stage? What would the total stamp duty be if we did purchase 100% at £650k?
Basically, there is no way we would consider staircasing if we have to pay the full stamp duty as we plan to move in 2-3 years so the cost of stamp duty would not be offset by savings from rent.
Thanks!
Olivia
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