Meaby & Co Property Lawyers London

Transfers of Equity – Considered Stamp Duty?

You may have bought a property jointly with another co-owner and when circumstances change, you may want to sell your interest in the property or buy out the co-owners share. This type of transaction is known as a Transfer of Equity. A common scenario may be where a property is originally purchased with a family member. For instance, brother A and brother B may own a property which they purchased with a mortgage and which they hold as tenants in common in equal shares.

Meaby & Co Property Lawyers London

SDLT and Residential Development

Further to our previous blog posts on Stamp Duty Land Tax (“SDLT”), it is worth bearing in mind that SDLT falls due on the date that the purchase contract is substantially performed. Deemed substantial performance of the contract will differ in each transaction and will turn on the facts. Persuasive factors include whether any part of the purchase price (generally 90% of more) or any rent has been paid or if the buyer has gone in to possession.

Meaby & Co Property Lawyers London

SDLT and Commercial Leases

Commercial tenants taking a lease of premises should not forget that Stamp Duty Land Tax (”SDLT”) may be payable. The SDLT is calculated on, what is known as, the Net Present Value (“NPV”) of the rent payable over the term of the lease. The minimum threshold for commercial leases is £150,000. For leases of commercial or mixed property, the SDLT rate is 1% for excess NPV up to £5 million and 2% when the NPV exceeds £5 million.

legal advice quiet enjoyment

Quiet enjoyment a tenants rights.

A tenant’s quiet enjoyment vs a landlord’s right to develop. A comment upon Timothy Taylor Ltd v. Mayfair House Corporation and another [2016] EWHC 1075 (ch).
The phrase quiet enjoyment does not only refer to the right of a tenant to enjoy peace and quiet. The implied right (often replicated expressly in leases) also means that a landlord cannot interfere with a tenant’s enjoyment of its leasehold premises and covers a variety of circumstances including unlawful threat of forfeiture.

Meaby & Co solicitors SDLT experts

Is Stamp Duty as taxing as it seems?

Stamp Duty Land Tax (“SDLT”), the tax paid on all manner of property purchases, has changed considerably in recent years.

It doesn’t just apply to house and flat purchases but also includes the grant or variation of a lease.

The following will also be considered residential property for SDLT purposes:

residential accommodation for school pupils;
residential accommodation for students (other than a hall of residence);
residential accommodation for members of the armed forces, or
an institution which is the sole or main residence of at least 90% of its residents.