The Grenfell Assisted Home Ownership Scheme: application guide for solicitors
Published 24 May 2024
Applies to England
© Crown copyright 2024
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Introduction
This guide has been produced to assist solicitors acting for households who wish to purchase a leasehold interest (‘share’) in the home they live in currently using the Grenfell Assisted Home Ownership Scheme (GAHOS).
It provides an overview of how GAHOS works, as well as important information about certain unique aspects of the application process that you must be aware of.
This includes additional things that you will need to do to ensure that households receive all the financial assistance through the scheme to which they are entitled.
For example:
-
if you are representing a household whose landlord is someone other than RBKC, you must work closely with RBKC to ensure that the household receives a discount of £136,400 (i.e. the maximum Right to Buy discount for London at the time GAHOS was launched in May 2024) on the purchase price of their share in their home. This is referred to through this guide as the ‘Right to Buy element’. Please see below for further information; and
-
when representing any household eligible for GAHOS, you must work closely with their landlord’s solicitor to ensure that the household receives any necessary assistance with Stamp Duty Land Tax (SDLT). Please see below for further information.
The Right to Buy element of GAHOS’s discount will remain at £136,400 throughout the lifetime of the scheme and will not be affected by any future changes to wider Right to Buy policy.
If you have further queries about GAHOS, you can contact the Ministry of Housing, Communities and Local Government (MHCLG) via email at: GAHOS@communities.gov.uk.
MHCLG cannot provide legal advice regarding specific cases.
If you have further queries about the process of sale, you are advised to contact the household’s landlord and/or their solicitor.
How GAHOS works
Households’ current homes are typically more expensive than their Grenfell homes. As a result, it is more costly, and therefore less attainable, for households to purchase these homes, than it would have been at Grenfell.
GAHOS has, therefore, been designed to enable a household to purchase a share in their current home in a similar way and at a similar cost to if they had purchased their Grenfell home.
The value of this share must be at least equivalent to the full value of the household’s Grenfell home. This is referred to as the ‘minimum’ share.
If the household would like to, they can explore the possibility of purchasing a larger share. This includes a share worth 100% of the full value of their current home. If the households home is a house, purchasing a share of 100% could involve purchasing the freehold or a share of the freehold.
The value of the different sizes of home at Grenfell are set out in the table below. These are based on what the homes would have been worth on 1 June 2017 and have been established using a valuations report from the District Valuer Services, commissioned by MHCLG.
If, for example, a household lived in a 2-bedroom flat in Grenfell Tower, to use GAHOS, they must purchase a minimum share in their current home worth at least £355,000.
| Location | Number of bedrooms | Market value |
|---|---|---|
| Grenfell Tower | 1 | £275,000 |
| Grenfell Tower | 2 | £355,000 |
| Grenfell Tower | 3 | £400,000 |
| Grenfell Walk | Studio | £275,000 |
| Grenfell Walk | 1 | £315,000 |
| Grenfell Walk | 2 | £460,000 |
| Grenfell Walk | 3 | £495,000 |
| Grenfell Walk | 5 | £580,000 |
The household’s existing landlord will continue to retain a financial interest in the share of the home that has not been purchased.
There is no rent to pay on the share retained by the landlord and the household’s service charge will also be capped at the rate they would have paid as a Grenfell leaseholder, minus any contribution for major repairs.
The financial assistance available to households to support the purchase of their share in their home
To support with the purchase of their share in their home, households are entitled to financial assistance.
This assistance has two distinct elements: the Right to Buy element and the market premium element.
The Right to Buy element:
The Right to Buy element is worth £136,400 (i.e. the maximum Right to Buy discount for London at the time of GAHOS’s launch in May 2024).
The value of the Right to Buy element will remain unchanged throughout the lifetime of the scheme. It will not be impacted by any future changes to wider Right to Buy policy.
Please note: The Right to Buy element will be administered differently, depending on who the household’s landlord is.
If the household’s landlord is RBKC:
If the household’s landlord is RBKC, the Right to Buy element must be deducted from the purchase price of their share.
This mirrors the arrangement for a standard Right to Buy transaction, where the value of the discount is always deducted from the full value of the buyer’s leasehold interest.
If the household’s landlord is someone other than RBKC:
If the household’s landlord is someone other than RBKC (e.g. a housing association), the Right to Buy element must be transferred to you (their solicitor) by RBKC’s solicitor to hold on trust prior to completion of the household’s purchase.
RBKC must transfer the Right to Buy element to you at least 15 days ahead of completion.
This sum can then be used by the household to meet the cost of their share. It will not be deducted from the purchase price of the share itself.
Please note: To receive the Right to Buy element, the household must enter into an agreement with RBKC as to the parameters of the discount, and you must provide an undertaking with RBKC’s solicitor.
The agreement will ensure that RBKC transfers the Right to Buy element at the right time, and that the household has recourse if this transfer occurs late, thereby delaying completion.
The undertaking will also require you to transfer the Right to Buy element back to RBKC within a set amount of time if the household fails to complete their purchase.
You are advised to contact RBKC’s solicitor about this undertaking as soon as you have been commissioned by a household to act on their behalf.
If required, RBKC can provide confirmation of their intention to make the Right to Buy element available to the household at an earlier stage in the application process (e.g. to help support a mortgage application).
If necessary, payment of the Right to Buy element can also be made available by RBKC ahead of the 15-day deadline outlined above, subject to the agreement and undertaking being entered into.
The market premium element:
Households will receive an amount equivalent to 20% of the full value of their Grenfell home, as it was on 1 June 2017. This is referred to as a ‘market premium’.
The value of the market premium for the different sizes of home at Grenfell are set out in the table below.
Please note: The market premium must be administered in the same way, regardless of who the household’s landlord is.
In all instances, the market premium must be deducted from the purchase price of the household’s share by their landlord.
| Location | Number of bedrooms | Market value | Value of market premium |
|---|---|---|---|
| Grenfell Tower | 1 | £275,000 | £55,000 |
| Grenfell Tower | 2 | £355,000 | £71,000 |
| Grenfell Tower | 3 | £400,000 | £80,000 |
| Grenfell Walk | Studio | £275,000 | £55,000 |
| Grenfell Walk | 1 | £315,000 | £63,000 |
| Grenfell Walk | 2 | £460,000 | £92,000 |
| Grenfell Walk | 3 | £495,000 | £99,000 |
| Grenfell Walk | 5 | £580,000 | £116,000 |
Examples of how the financial assistance available to households will affect the purchase price of their share in their home
The full value and purchase price of the household’s share must be confirmed by their landlord as part of their formal offer notice. This notice is known as a GAHOS 5 – Offer notice for the purchase of a share in a home using the Grenfell Assisted Home Ownership Scheme.
This Notice will be sent to the household once they have confirmed the final size of share in their home that they would like to purchase with their landlord.
Examples 1 to 4 below show how the purchase price of this share must be calculated in different scenarios.
These examples include scenarios where the RBKC is the landlord and where the landlord is someone other than RBKC. In all examples, the Right to Buy element is set at £136,400. The value of this element of GAHOS’s two-part discount will remain unchanged throughout the scheme’s lifetime. It will not be affected by future changes to wider Right to Buy policy.
When calculating the % value of the household’s share, if the % value is not a whole number, it must be rounded to two decimal places.
Example 1:
The share’s purchase price:
In this example:
- RBKC is the landlord;
- the full value of the household’s current home is £500,000;
- the full value of the household’s Grenfell home was £355,000; and
- the household purchases the minimum share in their current home (i.e. a share worth £355,000).
The share’s full value and its purchase price, minus the relevant discount:
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the Right to Buy element | Value of the share to be purchased | Total amount to be deducted from the share’s purchase price (B + C) | Purchase price of the share (D – E) |
| £355,000 | £71,000 | £136,400 | £355,000 | £207,400 | £147,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by RBKC |
| £500,000 | £355,000 | 71% | 29% |
For the purposes of a completion statement, the value of the household’s share must be listed as £355,000 (71% of the home’s full value). The value of RBKC’s share must be presented as £145,000 (29% of the home’s full value).
Example 2:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £500,000;
- the full value of the household’s Grenfell home was £355,000; and
- the household purchases the minimum share in their current home (i.e. a share worth £355,000).
The share’s full value and its purchase price, minus the relevant discount:
| A | B | C | D |
|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the share to be purchased | Purchase price of the share (C - B) |
| £355,000 | £71,000 | £355,000 | £284,000 |
Please note: As the household will receive the Right to Buy element from RBKC directly (rather than as a deduction from the share’s purchase price), the amount they will have to fund from their own resources to purchase the share is the same as in Example 1.
| A | B | C |
|---|---|---|
| Purchase price of share | Value of the Right to Buy element | Amount to be funded from the household’s own resources to purchase the share (A – B) |
| £284,000 | £136,400 | £147,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by the housing association |
| £500,000 | £355,000 | 71% | 29% |
For the purposes of a completion statement, the value of the household’s share must be listed as £355,000 (71% of the home’s full value). The value of housing association’s share must be presented as £145,000 (29% of the home’s full value).
Example 3:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £700,000;
- the full value of the household’s Grenfell home was £460,000; and
- the household purchases a share in their current home worth £550,000 (i.e. more than the minimum share).
The share’s full value and its purchase price, minus the relevant discount
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the Right to Buy element | Value of the share to be purchased | Total amount to be deducted from the share’s purchase price (B + C) | Purchase price of the share (D – E) |
| £460,000 | £92,000 | £136,400 | £550,000 | £228,400 | £321,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by RBKC |
| £700,000 | £550,000 | 78.57% | 21.43% |
For the purposes of a completion statement, the value of the household’s share must be listed as £550,000 (78.57% of the home’s full value). The value of RBKC’s share must be presented as £150,000 (21.43% of the home’s full value).
Example 4:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £700,000;
- the full value of the household’s Grenfell home was £460,000; and
- the household purchases a share in their current home worth £550,000 (i.e. more than the minimum share).
The share’s full value and its purchase price, minus the relevant discount:
| A | B | C | D |
|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the share to be purchased | Purchase price of the share (C – B) |
| £460,000 | £92,000 | £550,000 | £458,000 |
Please note: As the household will receive the Right to Buy element from RBKC directly (rather than as a deduction from the share’s purchase price), the amount they will have to fund from their own resources to purchase the share is the same as in Example 3.
| A | B | C |
|---|---|---|
| Purchase price of share | Value of the Right to Buy element | Amount to be funded from the household’s own resources to purchase the share (A – B) |
| £458,000 | £136,400 | £321,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by the housing association |
| £700,000 | £550,000 | 78.57% | 21.43% |
For the purposes of a completion statement, the value of the household’s share must be listed as £550,000 (78.57% of the home’s full value). The value of the housing association’s share must be presented as £150,000 (21.43% of the home’s full value).
Stamp Duty Land Tax (SDLT)
The household must pay the full SDLT due on the purchase of their share in their current home to HMRC.
If, however, the household must pay more SDLT than would have been due had they purchased their Grenfell home, they are entitled to financial assistance through GAHOS.
In practice, the value of this assistance is equivalent to the difference between the SDLT due on the purchase of their share in their current home and the SDLT that would have been due had they purchased their Grenfell home on Right to Buy terms with a discount of £136,400.
Please note: Any assistance due to the household must be transferred to you (their solicitor) by their landlord’s solicitor to hold on trust prior to completion of the household’s purchase.
The landlord must transfer this assistance to you at least 10 days ahead of the completion.
To ensure that you receive this assistance, you must contact the landlord’s solicitor to provide them with the following information confirming:
- that you are acting on the household’s behalf;
- your professional credentials;
- the total amount of SDLT due on the purchase of the household’s share in their current home; and
- if any, the amount of SDLT assistance the household is entitled to (i.e. the difference between the SDLT due on the purchase of their share in their current home and the SDLT that would have been due had they purchased their Grenfell home on Right to Buy terms).
It is advised that you contact the landlord’s solicitor to provide them with this information during the conveyancing period, and well in advance of the 10-day deadline for payment outlined above.
In addition, it may be necessary for the household to enter an agreement with their landlord regarding the payment of this assistance, and for you to provide an undertaking with the landlord’s solicitor.
This will help to ensure that payment occurs at the right time, and that you can transfer the assistance with SDLT back to the landlord if the household fails to complete their purchase.
Examples of how the financial assistance with SDLT must be calculated
The amount of SDLT due on the household’s share in their current home must be calculated using SDLT policy at the time of their purchase.
The amount of SDLT that would have been due on their Grenfell home must also be calculated using SDLT policy at the time of their purchase of their share in their current home.
For up-to-date information on SDLT policy, please visit: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates.
Assistance with SDLT is available regardless of the size of share purchased by the household.
If the household purchases a share of less than 100% of the value of their current home, assistance is only available if they opt to pay SDLT on the value of the share itself. In this scenario, assistance is not available, if the household opts to pay SDLT on the full value of their home (i.e. if they opt to make the market election).
The inclusion of the market election option within the lease mirrors the options that are available to people purchasing a home on shared ownership terms. For further information, please visit: https://www.gov.uk/stamp-duty-land-tax/shared-ownership-property.
Examples 1 to 6 below show how the assistance with SDLT must be calculated in different scenarios. All examples assume that the household is a first-time buyer and are based on SDLT policy at the time of writing (May 2024). All figures used are to the nearest £.
Example 1:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £600,000 and the full value of their Grenfell home was £355,000;
- the household purchases a share in their current home worth £355,000 (i.e. the minimum share);
- the Right to Buy element is £136,400 and the market premium is £71,000;
- first-time buyers’ relief would have applied to the purchase of the household’s Grenfell home because its full value was below £625,000;
- first-time buyers’ relief applies to the purchase of the household’s share in their current home because the home’s full value is below £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £355,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £218,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the household’s share in their current home | £355,000 |
| Purchase price of the household’s share, once the Right to Buy element and the market premium are applied | £147,600 |
| SDLT due | £0 |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £0 |
Example 2:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £600,000 and full the value of their Grenfell home was £355,000;
- the household purchases a share in their current home worth £355,000 (i.e. the minimum share);
- the market premium is £71,000;
- first-time buyers’ relief would have applied to the purchase of the household’s Grenfell home because its full value was below £625,000;
- first-time buyers’ relief applies to the purchase of the household’s share in their current home because the home’s full value is below £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £355,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £218,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the client’s share in their current home | £355,000 |
| Purchase price of the client’s share, once the market premium is applied | £284,000 |
| SDLT due | £0 |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £0 |
Example 3:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £700,000 and the full value of their Grenfell home was £460,000;
- the household purchases a share in their current home worth £500,000 (i.e. more than the minimum share);
- the Right to Buy element is £136,400 and the market premium is £92,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value was below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £460,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £323,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £500,000 |
| Purchase price of the household’s share, once the Right to Buy element and the market premium are applied | £271,600 |
| SDLT due | £1,080 – (5% on the portion between £250,001 and £271,600) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £1,080 – (£1,080 - £0) |
Example 4:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £700,000 and the full value of their Grenfell home was £460,000;
- the household purchases a share in their current home worth £500,000 (i.e. more than the minimum share);
- the market premium is £92,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value was below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £460,000 |
| Purchase price of the client’s Grenfell home, once the Right to Buy element is applied | £323,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the client is purchasing in their current home | £500,000 |
| Purchase price of the client’s share, once the market premium is applied | £408,000 |
| SDLT due | £7,900 – (5% on the portion between £250,001 and £408,000) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £7,900 – (£7,900 - £0) |
Example 5:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £800,000 and the full value of their Grenfell home was £580,000;
- the household purchases a share in their current home worth £600,000 (i.e. more than the minimum share);
- the Right to Buy element is £136,400 and the market premium is £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £580,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £443,600 |
| SDLT due | £930 – (5% on the portion between £425,001 and £443,600) |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £600,000 |
| Purchase price of the client’s share, once the Right to Buy element and market premium are applied | £347,600 |
| SDLT due | £4,880 – (5% on the portion between £250,001 and £347,600) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £3,950 – (£4,880 - £930) |
Example 6:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £800,000 and the full value of their Grenfell home was £580,000;
- the household purchases a share in their current home worth £600,000 (i.e. more than the minimum share);
- the market premium is worth £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the client’s Grenfell home | £580,000 |
| Purchase price of the client’s Grenfell home, once the Right to Buy element is applied | £443,600 |
| SDLT due | £930 – (5% on the portion between £425,001 and £443,600) |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the client is purchasing in their current home | £600,000 |
| Purchase price of the client’s share, once the market premium is applied | £484,000 |
| SDLT due | £11,700 – (5% on the portion between £250,001 and £484,000) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £10,770 – (£11,700 - £930) |
The GAHOS lease
Any lease that is granted to a household after a purchasing a share in their home through GAHOS must contain certain fundamental clauses. These clauses are to ensure that the scheme’s policy aspects relating to the ongoing rights and responsibilities of the landlord and the leaseholder are enforced (e.g. the rent and service charge caps).
Examples of GAHOS leases (one for houses and one for flats) containing all the fundamental clauses are available on Gov.uk. You are advised to review these leases to familiarise yourself with their fundamental clauses.
You must check that these clauses are included in any lease sent to you by the household’s landlord during conveyancing.
The only exception to this is if the household purchases a 100% share in a house and, in doing so, acquires the freehold. In this instance, the landlord can prepare the relevant deed of transfer as necessary, and without the fundamental clauses.
This is because the fundamental clauses are designed for the purchase of a leasehold interest in a home. They are not necessary for a freehold purchase because the household will own the house outright, meaning that the features of a leasehold arrangement that the fundamental clauses apply to are not required. There will, for example, never be a need to pay rent on any unacquired equity if the household purchases the freehold.
Annex A: Examples of how the financial assistance available to households and the assistance available with Stamp Duty Land Tax should be calculated on a single purchase
Example 1:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £750,000 and the full value of their Grenfell home was £355,000;
- the household purchases a share in their current home worth £355,000 (i.e. the minimum share);
- the Right to Buy element is £136,400 and the market premium is £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
The share’s full value and its purchase price, minus the relevant discount
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the Right to Buy element | Value of the share to be purchased | Total amount to be deducted from the share’s purchase price (B + C) | Purchase price of the share (D – E) |
| £355,000 | £71,000 | £136,400 | £355,000 | £207,400 | £147,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by RBKC |
| £750,000 | £355,000 | 47.33% | 52.67% |
For the purposes of a completion statement, the value of the household’s share must be listed as £355,000 (47.33% of the home’s full value). The value of RBKC’s share must be presented as £395,000 (52.67% of the home’s full value).
SDLT:
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £355,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £218,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £355,000 |
| Purchase price of the client’s share, once the Right to Buy element and market premium are applied | £147,600 |
| SDLT due | £0 |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £0 |
Example 2:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £750,000 and the full value of their Grenfell home was £355,000;
- the household purchases a share in their current home worth £355,000 (i.e. the minimum share);
- the Right to Buy element is £136,400 and the market premium is £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
The share’s full value and its purchase price, minus the relevant discount
| A | B | C | D |
|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the share to be purchased | Purchase price of the share (C - B) |
| £355,000 | £71,000 | £355,000 | £284,000 |
Please note: As the household will receive the Right to Buy element from RBKC directly (rather than as a deduction from the share’s purchase price), the amount they will have to fund from their own resources to purchase the share is the same as in Example 1.
| A | B | C |
|---|---|---|
| Purchase price of share | Value of the Right to Buy element | Amount to be funded from the household’s own resources to purchase the share (A – B) |
| £284,000 | £136,400 | £147,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by the housing association |
| £750,000 | £355,000 | 47.33% | 52.67% |
For the purposes of a completion statement, the value of the household’s share must be listed as £355,000 (47.33% of the home’s full value). The value of housing association’s share must be presented as £395,000 (52.67% of the home’s full value).
SDLT:
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £355,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £218,600 |
| SDLT due | £0 |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £355,000 |
| Purchase price of the client’s share, once the market premium is applied | £284,000 |
| SDLT due | £1,700 – (5% on the portion between £284,000 and £250,001) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £1,700 – (£1,700 - £0) |
Example 3:
In this example:
- the landlord is RBKC;
- the full value of the household’s current home is £900,000 and the full value of their Grenfell home was £580,000;
- the household purchases a share in their current home worth £650,000 (i.e. more than the minimum share);
- the Right to Buy element is £136,400 and the market premium is £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
The share’s full value and its purchase price, minus the relevant discount
| A | B | C | D | E | F |
|---|---|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the Right to Buy element | Value of the share to be purchased | Total amount to be deducted from the share’s purchase price (B + C) | Purchase price of the share (D – E) |
| £580,000 | £116,000 | £136,400 | £650,000 | £252,400 | £397,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by the housing association |
| £900,000 | £650,000 | 72.22% | 27.78% |
For the purposes of a completion statement, the value of the household’s share must be listed as £650,000 (72.22% of the home’s full value). The value of RBKC’s share must be presented as £250,000 (27.78% of the home’s full value).
SDLT:
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £580,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £443,600 |
| SDLT due | £930 –(5% on the portion between £425,001 and £443,600) |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £650,000 |
| Purchase price of the client’s share, once the Right to Buy element and market premium are applied | £397,600 |
| SDLT due | £7,380 (5% on the portion between £250,001 and £397,600 |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £6,450 (£7,380 – £930) |
Example 4:
In this example:
- the landlord is a housing association;
- the full value of the household’s current home is £900,000 and the full value of their Grenfell home was £580,000;
- the household purchases a share in their current home worth £650,000 (i.e. more than the minimum share);
- the Right to Buy element is £136,400 and the market premium is £116,000;
- first-time buyer’s relief would have applied to the purchase of the household’s Grenfell home because its full value is below £625,000;
- first-time buyer’s relief does not apply to the purchase of the household’s share in their current home because the home’s full value is more than £625,000;
- the threshold for first-time buyers’ relief is 0% up to £425,000 and then 5% on the portion from £425,001 and £625,000; and
- the residential property rates for SDLT are 0% up to £250,000 and 5% on the portion between £250,001 and £925,000.
The share’s full value and its purchase price, minus the relevant discount
| A | B | C | D |
|---|---|---|---|
| Value of Grenfell home | Value of the market premium (20% of A) | Value of the share to be purchased | Purchase price of the share (C - B) |
| £580,000 | £116,000 | £650,000 | £534,000 |
Please note: As the household will receive the Right to Buy element from RBKC directly (rather than as a deduction from the share’s purchase price), the amount they will have to fund from their own resources to purchase the share is the same as in Example 3.
| A | B | C |
|---|---|---|
| Purchase price of share | Value of the Right to Buy element | Amount to be funded from the household’s own resources to purchase the share (A – B) |
| £534,000 | £136,400 | £397,600 |
The share’s value in % terms:
| A | B | C | D |
|---|---|---|---|
| Full value of current home | Value of share purchased | % value of shared owned by the household | % value of shared owned by the housing association |
| £900,000 | £650,000 | 72.22% | 27.78% |
For the purposes of a completion statement, the value of the household’s share must be listed as £650,000 (72.22% of the home’s full value). The value of housing association’s share must be presented as £250,000 (27.78% of the home’s full value).
SDLT:
| SDLT that would have been due at Grenfell | |
|---|---|
| Value of the household’s Grenfell home | £580,000 |
| Purchase price of the household’s Grenfell home, once the Right to Buy element is applied | £443,600 |
| SDLT due | £930 –(5% on the portion between £425,001 and £443,600) |
| SDLT due on the purchase of the household’s share in their current home | |
| Value of the share the household is purchasing in their current home | £650,000 |
| Purchase price of the client’s share, once the market premium is applied | £534,000 |
| SDLT due | £14,200 – (5% on the portion between £250,001 and £534,000) |
| Assistance with SDLT available through GAHOS | |
| Assistance with SDLT due under GAHOS | £13,270 (£14,200 – £930) |