Shared ownership sale! Help!

Kylie_R

Hello, 

sorry this has probably been asked 100000% times.

I bought my house in 2019 as a first time buyer. The full value was £290000. I bought a 50% share for £145000. As a first time buyer I did not pay any stamp duty.

I now want to sell my house and they people who want to buy it are full Ownership buyers. The RICS surveyor valued it at £350000 and they offered and I accepted £360000 (this is what the estate agent said to put it on for).

From them to buy the property I need to simultaneously staircase and sell at the same time. However, I didn’t even consider stamp duty until today and I have no idea how much I’ll have to pay if anything. I have read conflicting information about a sub-relief payment which means I don’t pay any stamp duty when I staircase and sell but at the same time I also have read that I will have to pay stamp duty when I staircase and then the buyers from me will have to pay another lot of stamp duty? 

Will I have to pay stamp duty? If so how much is it likely to be? Will it be on the full £360,000 or half of the £350,000? 

Sorry I’m so confused about this whole selling thing! 

Any help greatly received!

thank you 🙏🏼🙏🏼

Kylie_R

@SDLT_Geek are you able to help? Sorry I’ve seen you reply on a few posts and I believe you may hold the knowledge! 

Thank you! 

Leggitte

Kylie_R said:

From them to buy the property I need to simultaneously staircase and sell at the same time. 

Are you sure you will have to staircase to 100% for them to buy 100%? Can't they buy the 50% of you and the other half from the HA?

Kylie_R

 Leggitte said:

Kylie_R said:

From them to buy the property I need to simultaneously staircase and sell at the same time. 

Are you sure you will have to staircase to 100% for them to buy 100%? Can't they buy the 50% of you and the other half from the HA?

Hello, thanks for the reply.

No I have to simultaneously staircase and sell at the same time. I thought what you have written would happen but apparently not 😬 

MINNIEMOMO

That's odd, our buyers are buying the 30% share of our property and an extra 20%, but the extra 20% is nothing to do with us 

the82message

Kylie_R said:

Hello, 

sorry this has probably been asked 100000% times.

I bought my house in 2019 as a first time buyer. The full value was £290000. I bought a 50% share for £145000. As a first time buyer I did not pay any stamp duty.

I now want to sell my house and they people who want to buy it are full Ownership buyers. The RICS surveyor valued it at £350000 and they offered and I accepted £360000 (this is what the estate agent said to put it on for).

From them to buy the property I need to simultaneously staircase and sell at the same time. However, I didn’t even consider stamp duty until today and I have no idea how much I’ll have to pay if anything. I have read conflicting information about a sub-relief payment which means I don’t pay any stamp duty when I staircase and sell but at the same time I also have read that I will have to pay stamp duty when I staircase and then the buyers from me will have to pay another lot of stamp duty? 

Will I have to pay stamp duty? If so how much is it likely to be? Will it be on the full £360,000 or half of the £350,000? 

Sorry I’m so confused about this whole selling thing! 

Any help greatly received!

thank you 🙏🏼🙏🏼

I just sold my Shared Ownership flat a few weeks ago (where I owned 40%); technically, because you have to staircase to 100% ownership to then sell that to the buyer, you do have to pay SDLT. It is supremely frustrating, so please do factor this in to your budget. Also FWIW, my solicitor wasn't aware of this initially (as she hadn't had that type of transaction before), only because I brought it up with her, as my old neighbour had got this surprise when they sold theirs!

Kylie_R

MINNIEMOMO said:

That's odd, our buyers are buying the 30% share of our property and an extra 20%, but the extra 20% is nothing to do with us 

I currently own 50%. The buyers are buying my 50% and the other 50% so are full ownership buyers.

The letter from my housing association says…

Most shared ownership leases provide Hightown with the right to nominate a purchaser for a property when it becomes available for resale. If Hightown is unable to find a buyer within the specified nomination period, the shared owner may sell their home privately via an estate agent.

If the shared owner sells their home through an estate agent they have two options;

1. they can either sell their existing share;

or

2. they can sell 100% of the property.

(The second option is carried out by completing a simultaneous staircasing and resale. In this event we will need to instruct solicitor’s to act on Hightown’s behalf. Please see the advice section regarding completing these simultaneous transactions.)

Simultaneous re-sales and staircasing transactions

If the estate agent sells 100% of the property (as opposed to only the share currently owned), there are strict rules which relate to the staircasing which must be adhered to.

Essentially, at the time the sale completes there must be a valid valuation in place. A valid valuation is defined as a valuation carried out by a RICS valuer, which is no older than 3 months, at the date of completion.

This can potentially cause the sale price of a property to change after the purchase price has been agreed between the vendor and purchaser, should the sale take longer than 3 months. All parties to the transaction should be aware of this important point so that purchasers are not lost.

Your estate agent should send us a memorandum of sale confirming the purchaser and all parties’ solicitors as soon as an offer is accepted, so that we can instruct our solicitor to deal with the staircasing element of the sale.

 

Please note if you sell for more than the valuation amount, we will expect the staircasing at the sale value.

Kylie_R

the82message said:

Kylie_R said:

Hello, 

sorry this has probably been asked 100000% times.

I bought my house in 2019 as a first time buyer. The full value was £290000. I bought a 50% share for £145000. As a first time buyer I did not pay any stamp duty.

I now want to sell my house and they people who want to buy it are full Ownership buyers. The RICS surveyor valued it at £350000 and they offered and I accepted £360000 (this is what the estate agent said to put it on for).

From them to buy the property I need to simultaneously staircase and sell at the same time. However, I didn’t even consider stamp duty until today and I have no idea how much I’ll have to pay if anything. I have read conflicting information about a sub-relief payment which means I don’t pay any stamp duty when I staircase and sell but at the same time I also have read that I will have to pay stamp duty when I staircase and then the buyers from me will have to pay another lot of stamp duty? 

Will I have to pay stamp duty? If so how much is it likely to be? Will it be on the full £360,000 or half of the £350,000? 

Sorry I’m so confused about this whole selling thing! 

Any help greatly received!

thank you 🙏🏼🙏🏼

I just sold my Shared Ownership flat a few weeks ago (where I owned 40%); technically, because you have to staircase to 100% ownership to then sell that to the buyer, you do have to pay SDLT. It is supremely frustrating, so please do factor this in to your budget. Also FWIW, my solicitor wasn't aware of this initially (as she hadn't had that type of transaction before), only because I brought it up with her, as my old neighbour had got this surprise when they sold theirs!

Thank you! Did you pay SDLY on the 60% you had to buy or the full value? 

Very frustrating as it feels like it’s two bites of the cherry for SDLT!

the82message

Yeah, paid on the 60%, as I had paid SDLT on the 40% back in 2015 when I purchased (still annoyed by it as wasnt made aware back then)!!

Kylie_R

the82message said:

Yeah, paid on the 60%, as I had paid SDLT on the 40% back in 2015 when I purchased (still annoyed by it as wasnt made aware back then)!!

That’s what’s worrying me, as I was a FTB and it was under the threshold I didn’t pay any SDLT so would it still be only on the 50% I don’t own already? 

ResourcesShared

HMRC publish guidance on shared ownership and stamp duty land tax. Apparently I haven't been on here for long enough to post a link, but you should be able to find it by Googling.... Hope it's helpful.