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Shared Ownership Staircasing - Stamp Duty + Positive Restriction Question?!
kimbyanne
Posts: 303 Forumite
Hi,
Some people on here helped us recently to work out the stamp duty we would be paying once we staircase to 100%.
It was explained as;
Work out the payments in linked transactions: £89,650 + £87,750 = £177,400.
Work out SDLT at today's rates on £177,400: it comes to £1,048.
The SDLT you pay is a fraction of the £1,048. The fraction is £87,750 / £177,400.
That works out as £518.
However, our solicitors have come back saying the stamp duty cost is £1,048? I have gone back to challenge this but not sure if they will agree?
My other question is currently, as a shared ownership property we pay a small amount per month for upkeep of the communal areas. The new TP1 we have been sent to sign makes reference to “positive covenants” or making a fair and proper proportion of the proper and reasonable costs incurred in complying with its covenants (including reasonable provision for reserve funds and sinking funds) together with a management fee of 15% per annum of the aggregated of all such sums plus VAT.
Pay a fair share and proportion of the cost of repairing maintaining and renewing all service media used in common by the property with the owners or occupiers from time to time if adjoining or neighbouring property.
What does this mean? As far as we knew, once we own the freehold - we do not pay towards any upkeep - never really understood why we did as we do not have any communal areas aside from a communal parking area which is not used by us as we have our own driveway?!
Can anyone shed some light? I have gone back to the solicitor re the stamp duty but not sure if the rest is just standard stuff?
Any help appreciated?!?
Some people on here helped us recently to work out the stamp duty we would be paying once we staircase to 100%.
It was explained as;
Work out the payments in linked transactions: £89,650 + £87,750 = £177,400.
Work out SDLT at today's rates on £177,400: it comes to £1,048.
The SDLT you pay is a fraction of the £1,048. The fraction is £87,750 / £177,400.
That works out as £518.
However, our solicitors have come back saying the stamp duty cost is £1,048? I have gone back to challenge this but not sure if they will agree?
My other question is currently, as a shared ownership property we pay a small amount per month for upkeep of the communal areas. The new TP1 we have been sent to sign makes reference to “positive covenants” or making a fair and proper proportion of the proper and reasonable costs incurred in complying with its covenants (including reasonable provision for reserve funds and sinking funds) together with a management fee of 15% per annum of the aggregated of all such sums plus VAT.
Pay a fair share and proportion of the cost of repairing maintaining and renewing all service media used in common by the property with the owners or occupiers from time to time if adjoining or neighbouring property.
What does this mean? As far as we knew, once we own the freehold - we do not pay towards any upkeep - never really understood why we did as we do not have any communal areas aside from a communal parking area which is not used by us as we have our own driveway?!
Can anyone shed some light? I have gone back to the solicitor re the stamp duty but not sure if the rest is just standard stuff?
Any help appreciated?!?
0
Comments
-
bear in mind many solicitors/conveyancers won't have much experience of shared ownership and no idea that the rules are different
there is at least one such person on here who only learned of it via threads about it here
give your solicitor the following link and ask them to explain what they have misunderstood about the workings shown thereon when they did their calculation
https://www.gov.uk/guidance/sdlt-shared-ownership-property0 -
Hi, our house used to be shared ownership but once we staircased to 100% and obtained the freehold we then had to pay our management company direct for upkeep of the communal areas (£10 a month). However I did know that when we purchased and originally it was included with our ‘rent’ portion that went to the housing association and they then paid the management company. Not sure why you’d be paying a management company if there were no communal areas though.0
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