Shared Ownership staircasing to 100%, stamp duty, rent, remortgaging & "First Refusal"

annetheman

SDLT_Geek said:

annetheman said: 

I have had the idea of staircasing to 99% (you will be able to increase by 1%s from 2021) to avoid paying ground rent and staying there until I decide to sell. Interested in opinions on this!

It is likely that the shared ownership lease will require the last increase to be at least 10%.  Here is a clause from the model form of lease which can be found on line here: https://www.gov.uk/guidance/capital-funding-guide/1-help-to-buy-shared-ownership
“Portioned Percentage” means at any relevant time (including for the avoidance of doubt on the Final Staircasing) the percentage interest in the Premises which the Leaseholder proposes to acquire (or has already acquired) under the provisions of ‎Schedule 6 (Staircasing Provisions ), being a portion of the then Market Value of the Premises up to a maximum of 100%, each Portioned Percentage being at least 10%, and so that the Portioned Percentage which accomplishes Final Staircasing shall be at least 10%.

Thanks for that! Do you know if this has been updated since the announcement last week? Very few details have been released apart from that so hard to find out what's been confirmed!

Starting from 50%, I could still technically do something like 29% then 20% or similar. But good to know ahead!

SDLT_Geek

annetheman said:
Thanks for that! Do you know if this has been updated since the announcement last week? Very few details have been released apart from that so hard to find out what's been confirmed!

Starting from 50%, I could still technically do something like 29% then 20% or similar. But good to know ahead!

The model form of flat lease has not been updated since the wording set out above.

rachlikeswinter

annetheman said:

 (you will be able to increase by 1%s from 2021) 

As far as I am aware, the proposed ability to staircase in 1% increments is only going to be available if the property is bought after April 2021.. so if you currently own already, you won't be able to take advantage. 

Following this thread with interest as I am hopefully going to also be a S.O buyer so gathering all the facts I can!