Shared Ownership Stamp Duty Calculation

Little_Bunny

Hello all,

After 4 long arduous years lol I am finally able to staircase. I’m toying with the idea of paying off my mortgage before I do so but if just want to know all the costs applicable before I go ahead with the staircasing process.

So the big one is probably the stamp duty. The relevant details are as follows:

Property bought in August 2015 valued at £380k nearly. I paid £1,511 stamp duty but full value at the time was meant to be £8,862. I know the current valuation is the bit that’s missing and whilst I may try and dispute this if I can, my neighbour is trying to sell a 2 bed and on the Share to Buy website went for £10k more than the value they originally bought at. I’m hoping the maximum my flat would be valued at is £385k seeing as there are more 1 beds around here I think.

So please can someone help me with the calculation that I will need to pay if I were to go ahead and staircase to the full 100% from the current 50% I have. I’m praying it’s not £7,351 gaaaahhhhh because I also know I’m not eligible for the stamp duty relief ... :mad:

Anyway if someone can please help with a calculation and why (to help others in the same boat!) that would be much appreciated!

P.s. telling me to go to the Government website is not helpful as I just don’t understand what they say and their examples!! Yes I am a bit of a dunce lol :rotfl:

Many thanks,

LB

SDLT_Geek

I am going to assume that you paid £188,620 for the 50% share in August 2015. I will also assume a payment of £192,500 for the staircasing out now.

That makes total payments of £381,120.

SDLT on a transaction for that amount would be £9,056.

But you pay a fraction of that. The fraction is £192,500 / £381,120.

That comes to £4,574. So on these assumptions the SDLT on staircasing out is £4,574.

Little_Bunny

OMG you were so scarily close it was £188,625 for the 50% share!! Wow that’s amazing!!

Sorry to ask one more silly question please, is that £4,574 on TOP of the £1,511 I’ve already paid or I will have to fund that fully now?

You can really see I’m really hoping to minimise what I need to pay in my head lolol

Again thanks you’ve been brilliant!

LB

SDLT_Geek

The £4,574 is on top of the amount you have already paid.
Did the amount you paid before include an element for SDLT on the net present value of the rents?

Little_Bunny

Thanks SDLT Geek again. This is copied exactly from my solicitor:

Stamp Duty on full market value = £8862.00 Stamp Duty on premium plus rent =£1511.00.

I’m not sure if that answers the question?! Sorry!

Many thanks,

LB

SDLT_Geek

Yes, that makes sense, £1,511 would be SDLT on the first 50% and on the rent. So still £4,574 to pay on staircasing out.

Little_Bunny

Thanks SDLT Geek, very helpful and I hope this post others too