SDLTM27073 - Reliefs: Right to buy transactions, shared ownership leases etc: Shared ownership trust: general conditions FA03/SCH9/PARA7
A shared ownership trust is a trust of land, within the meaning of section 1 Trusts of Land and Appointment of Trustees Act 1996, which meets the following conditions.
- The trust property must consist of a dwelling in England. For this purpose a dwelling includes
a building which is being constructed or adapted for use as a dwelling
land which is to be used for the purpose of the construction of a dwelling and
land which is, or is to become, the garden or grounds of a dwelling.
- One of the beneficiaries of the trust (known as “the social landlord”) must be a qualifying body - see SDLTM27020.
- The terms of the trust must
provide for one or more individual beneficiaries (“the purchaser”) to have exclusive use of the trust property as his or her only or main residence
require the purchaser to make an initial payment (“the initial capital”) to the social landlord
require the purchaser to make additional payments (“rent-equivalent payments) to the social landlord by way of compensation under section 13(6)(a) Trusts of Land and Appointment of Trustees Act 1996
enable the purchaser to make other additional payments (“equity-acquisition payments”) to the social landlord
determine the initial beneficial interests of the social landlord and the purchaser by reference to the initial capital
specify a sum, equating or relating to the market value of the dwelling, by reference to which the initial capital is calculated and
provide for the purchaser’s beneficial interest in the property to increase, and the social landlord’s to diminish (or be extinguished) as equity-acquisition payments are made.