Purchasing a flat/ extending the lease. Is this a linked transaction?

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    Purchasing a flat/ extending the lease. Is this a linked transaction?

    Hey guys,

    I am currently buying a flat for £250,000 and the vendor has agreed with the freeholder (landlord) that the lease will cost £9700. Now of course if this is classed as a linked transaction, I will have to pay 3% rather as the overall value would be £259,700 rather £250,000 which would make the stamp duty 1%. However as I will be purchasing from the vendor and extending the lease with the freeholder, these 2 transactions are not with both the same buyer and seller so from what I understand, this would not be classed as a linked transaction.

    I was wondering if anyone can help on this and if anyone has come across this type of situation.

    I'm on the verge of exchanging so would really appreciate if anyone can get back to me ASAP.

    Many thanks.

    Adam

    #2
    Not an expert on this, but in my opinion this should be counted as two seperate transactions.

    If this wasn't the case then every lease extension on properties around the £250k threshold would have to pay 3% SDLT.

    I might be wrong, but think this would have come up as a problem before now.

    There is a phone helpline on the HMRC website for SDLT queries.

    What does your conveyancer/solicitor say?

    Comment


      #3
      Hi,

      Thank you for your response. I agree with what you are saying but my solicitor said it was a linked transaction although I think she may be incorrect as I spoke to several other solicitors and they think it is not linked. I guess I will have to call HMRC on Monday morning.

      Comment


        #4
        Has anyone else come accross this before? Thanks

        Comment

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