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  • FIRST POST
    • henrygregory
    • By henrygregory 2nd Apr 18, 5:54 PM
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    henrygregory
    Fist Time Shared Ownership Buyer: Calculating Stamp Duty
    • #1
    • 2nd Apr 18, 5:54 PM
    Fist Time Shared Ownership Buyer: Calculating Stamp Duty 2nd Apr 18 at 5:54 PM
    Hi there,
    I have been offered a two bed shared ownership property in my local area. According to the Housing Association, over two hundred local people applied for it, so I am lucky to have been offered it.

    The cost of the house is 310k, and I will be purchasing a 75% share which is 232,500.

    The Housing Association asked me to get a quote from a Mortgage Advisory company they work with. The company have gone ahead and got me some mortgage quotes, however one thing that confused me a little was the amount the mortgage adviser has said I would have to pay in stamp duty.

    He seems to think it will be around 2,500 for stamp duty. This doesn't seem right to me as the threshold for a first time buyer like is currently set at 300k. So I would be 10k over the limit.

    Can anyone help me work out how he has got to this figure?
Page 1
    • SDLT Geek
    • By SDLT Geek 2nd Apr 18, 6:14 PM
    • 307 Posts
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    SDLT Geek
    • #2
    • 2nd Apr 18, 6:14 PM
    • #2
    • 2nd Apr 18, 6:14 PM
    500, being 5% of the excess over 300,000.

    But only if you count as a first timer buyer for SDLT. Even small shares in properties count against you, even if acquired by gift or inheritance.
    • henrygregory
    • By henrygregory 2nd Apr 18, 6:16 PM
    • 471 Posts
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    henrygregory
    • #3
    • 2nd Apr 18, 6:16 PM
    • #3
    • 2nd Apr 18, 6:16 PM
    500, being 5% of the excess over 300,000.

    But only if you count as a first timer buyer for SDLT. Even small shares in properties count against you, even if acquired by gift or inheritance.
    Originally posted by SDLT Geek
    500 is what I got when I used the proper calculator...
    • G_M
    • By G_M 2nd Apr 18, 7:47 PM
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    G_M
    • #4
    • 2nd Apr 18, 7:47 PM
    • #4
    • 2nd Apr 18, 7:47 PM
    Bear in mind mortgage bokers are experts in... errr.... mortgages. Not tax.

    Assuming you use a solicitor (I imagine you'll have to on a share ownership), he'll work out the correct SDLT and pay it on your behalf.
    • henrygregory
    • By henrygregory 2nd Apr 18, 9:58 PM
    • 471 Posts
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    henrygregory
    • #5
    • 2nd Apr 18, 9:58 PM
    • #5
    • 2nd Apr 18, 9:58 PM
    Bear in mind mortgage bokers are experts in... errr.... mortgages. Not tax.

    Assuming you use a solicitor (I imagine you'll have to on a share ownership), he'll work out the correct SDLT and pay it on your behalf.
    Originally posted by G_M
    Thank you, yes that is right, I will have to appoint a solicitor. Thought I would verify with advisor first before I commit and then find out I have a huge SDLT bill.
    • henrygregory
    • By henrygregory 13th Apr 18, 12:20 PM
    • 471 Posts
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    henrygregory
    • #6
    • 13th Apr 18, 12:20 PM
    • #6
    • 13th Apr 18, 12:20 PM
    I seem to be getting nowhere with this.

    Contacted some solicitors to get some quotes for purchasing the property and the first one came back to me with a 2150 charge for Stamp Duty.

    When I questioned this and explained that the property is 310k so 10k over the threshold for stamp duty payments for a first time buyer, she said:

    Good Morning,



    Thank you for your email. I am afraid shared ownership properties are not exempt from stamp duty and is not included under the same.
    This makes no sense to me as all of the government websites say that you don't pay anything under 300k in the UK if you are a first time buyer. This scheme is designed with people such as myself in mind who are struggling to purchase a property.
    • SDLT Geek
    • By SDLT Geek 13th Apr 18, 12:30 PM
    • 307 Posts
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    SDLT Geek
    • #7
    • 13th Apr 18, 12:30 PM
    • #7
    • 13th Apr 18, 12:30 PM
    Yes, of course shared ownership properties can be covered by first time buyers' relief. There is a requirement that one elects to pay SDLT based on the overall market value (not just on the share you now buy with a "pay as you go" when you go over 80%). That is what you have in mind.


    It is all set out clearly in the guidance. Perhaps you need to find some conveyancers who understand it better.
    • henrygregory
    • By henrygregory 13th Apr 18, 12:36 PM
    • 471 Posts
    • 51 Thanks
    henrygregory
    • #8
    • 13th Apr 18, 12:36 PM
    • #8
    • 13th Apr 18, 12:36 PM
    Yes, of course shared ownership properties can be covered by first time buyers' relief. There is a requirement that one elects to pay SDLT based on the overall market value (not just on the share you now buy with a "pay as you go" when you go over 80%). That is what you have in mind.


    It is all set out clearly in the guidance. Perhaps you need to find some conveyancers who understand it better.
    Originally posted by SDLT Geek
    That is what I have done. Have just contacted another solicitor who has come back to me with the correct info. 500 SDLT charge. That was what I was looking for! I don't think I will be using the first one I approached.
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