Lease premium? Shared ownership stamp duty

weston800

I am trying to work out what the potential stamp duty cost will be on a shared ownership property post April 2025 (I am NOT a first time buyer). I have tried to do a calculation on the Government website but there is a question I am stuck on:

• Total lease premium payable? (Find this in your lease) - How I can work out what the lease premium would be?

I know it will depend on which option I am eligible for but I am currently looking at a new build 35% shared ownership for £87,500 of which I am required to put a 5% deposit down.

The leasehold is 990 years and monthly rent on the remaining 65% is £375 plus £42 per month service charge. 

The rest of the questions in the calculation make sense but the lease premium I just have no idea. 

Thanks 

SDLT_Geek

weston800 said:

I am trying to work out what the potential stamp duty cost will be on a shared ownership property post April 2025 (I am NOT a first time buyer). I have tried to do a calculation on the Government website but there is a question I am stuck on:

• Total lease premium payable? (Find this in your lease) - How I can work out what the lease premium would be?

I know it will depend on which option I am eligible for but I am currently looking at a new build 35% shared ownership for £87,500 of which I am required to put a 5% deposit down.

The leasehold is 990 years and monthly rent on the remaining 65% is £375 plus £42 per month service charge. 

The rest of the questions in the calculation make sense but the lease premium I just have no idea. 

Thanks 

Are you looking at a property with a market value of £250,000, so that, when buying a 35% share, you are paying £87,500?

If so, your "premium" for the calculator is £87,500.

Brucie bonus:

Assuming you are buying in England:

If you do not elect to pay SDLT on market value then the SDLT will be:
£0 on the £87,500 premium
£35 on the rent of £4,500 pa
But you would likely have SDLT to pay on staircasing over 80%.

If you elect to pay SDLT on market value, then the SDLT (completing after 31 March 2025) on £250,000 would be £2,500.

weston800

SDLT_Geek said:

weston800 said:

I am trying to work out what the potential stamp duty cost will be on a shared ownership property post April 2025 (I am NOT a first time buyer). I have tried to do a calculation on the Government website but there is a question I am stuck on:

• Total lease premium payable? (Find this in your lease) - How I can work out what the lease premium would be?

I know it will depend on which option I am eligible for but I am currently looking at a new build 35% shared ownership for £87,500 of which I am required to put a 5% deposit down.

The leasehold is 990 years and monthly rent on the remaining 65% is £375 plus £42 per month service charge. 

The rest of the questions in the calculation make sense but the lease premium I just have no idea. 

Thanks 

Are you looking at a property with a market value of £250,000, so that, when buying a 35% share, you are paying £87,500?

If so, your "premium" for the calculator is £87,500.

Brucie bonus:

Assuming you are buying in England:

If you do not elect to pay SDLT on market value then the SDLT will be:
£0 on the £87,500 premium
£35 on the rent of £4,500 pa
But you would likely have SDLT to pay on staircasing over 80%.

If you elect to pay SDLT on market value, then the SDLT (completing after 31 March 2025) on £250,000 would be £2,500.

Thank you, I'm grateful for your reply; however, slightly more confused now. 

I'm not sure what is meant by staircasing?

And when you say if I do or do not elect to pay SDLT? As though it's an option to me? I don't think I have a choice do I? 

I have done my calculation based on 01/04/2025 as per the screenshot and it shows £0 SDLT for the premium.

Thanks again 😊

SDLT_Geek

weston800 said:

SDLT_Geek said:

weston800 said:

I am trying to work out what the potential stamp duty cost will be on a shared ownership property post April 2025 (I am NOT a first time buyer). I have tried to do a calculation on the Government website but there is a question I am stuck on:

• Total lease premium payable? (Find this in your lease) - How I can work out what the lease premium would be?

I know it will depend on which option I am eligible for but I am currently looking at a new build 35% shared ownership for £87,500 of which I am required to put a 5% deposit down.

The leasehold is 990 years and monthly rent on the remaining 65% is £375 plus £42 per month service charge. 

The rest of the questions in the calculation make sense but the lease premium I just have no idea. 

Thanks 

Are you looking at a property with a market value of £250,000, so that, when buying a 35% share, you are paying £87,500?

If so, your "premium" for the calculator is £87,500.

Brucie bonus:

Assuming you are buying in England:

If you do not elect to pay SDLT on market value then the SDLT will be:
£0 on the £87,500 premium
£35 on the rent of £4,500 pa
But you would likely have SDLT to pay on staircasing over 80%.

If you elect to pay SDLT on market value, then the SDLT (completing after 31 March 2025) on £250,000 would be £2,500.

Great, that is exactly the same output as I had on the calculation for SDLT not electing on market value:
£0 on the premium
£35 on the rent.

 Thank you, I'm grateful for your reply; however, slightly more confused now. 

I'm not sure what is meant by staircasing?
Staircasing is buying further shares in a shared ownership property.

And when you say if I do or do not elect to pay SDLT? As though it's an option to me? I don't think I have a choice do I? 
Yes, you could elect to pay SDLT now on the whole £250,000 value.  That would mean there would be no more SDLT to pay if you staircased to over 80%

I have done my calculation based on 01/04/2025 as per the screenshot and it shows £0 SDLT for the premium.
Yes, this is identical to the calculation I did for a purchase without the election to pay on market value.

Thanks again 😊

See comments in bold above.

weston800

SDLT_Geek said:

weston800 said:

SDLT_Geek said:

weston800 said:

I am trying to work out what the potential stamp duty cost will be on a shared ownership property post April 2025 (I am NOT a first time buyer). I have tried to do a calculation on the Government website but there is a question I am stuck on:

• Total lease premium payable? (Find this in your lease) - How I can work out what the lease premium would be?

I know it will depend on which option I am eligible for but I am currently looking at a new build 35% shared ownership for £87,500 of which I am required to put a 5% deposit down.

The leasehold is 990 years and monthly rent on the remaining 65% is £375 plus £42 per month service charge. 

The rest of the questions in the calculation make sense but the lease premium I just have no idea. 

Thanks 

Are you looking at a property with a market value of £250,000, so that, when buying a 35% share, you are paying £87,500?

If so, your "premium" for the calculator is £87,500.

Brucie bonus:

Assuming you are buying in England:

If you do not elect to pay SDLT on market value then the SDLT will be:
£0 on the £87,500 premium
£35 on the rent of £4,500 pa
But you would likely have SDLT to pay on staircasing over 80%.

If you elect to pay SDLT on market value, then the SDLT (completing after 31 March 2025) on £250,000 would be £2,500.

Great, that is exactly the same output as I had on the calculation for SDLT not electing on market value:
£0 on the premium
£35 on the rent.

 Thank you, I'm grateful for your reply; however, slightly more confused now. 

I'm not sure what is meant by staircasing?
Staircasing is buying further shares in a shared ownership property.

And when you say if I do or do not elect to pay SDLT? As though it's an option to me? I don't think I have a choice do I? 
Yes, you could elect to pay SDLT now on the whole £250,000 value.  That would mean there would be no more SDLT to pay if you staircased to over 80%

I have done my calculation based on 01/04/2025 as per the screenshot and it shows £0 SDLT for the premium.
Yes, this is identical to the calculation I did for a purchase without the election to pay on market value.

Thanks again 😊

See comments in bold above.

Ahhh I understand perfectly now, thank you so much! I am truly appreciative to you for taking the time to explain this to me simple terms 😊 thank you again.