Reliefs: Right to buy transactions, shared ownership leases etc: Conditions the shared ownership lease must fulfil FA03/SCH9/PARA2 & PARA 4
The term “shared ownership lease” is not defined in SDLT legislation. However, in order to benefit from the special treatment for shared ownership leases under FA03/SCH9 the lease must meet all of the following general conditions.
The lease must be granted either by a qualifying body or in pursuance of a preserved right to buy.
Qualifying bodies are
- a local housing authority
- a housing association
- a housing action trust
- the Northern Ireland Housing Executive
- the Commission for the New Towns or
- a development corporation.
A lease is granted in pursuance of a preserved right to buy where
- the lessor is a person against whom the right to buy (under Part 5 of the Housing Act 1985) is exercisable by virtue of section 171A of that Act
- the lessee is (or lessees are) the qualifying person(s) for the purposes of the preserved right to buy and
- the lease is of a dwelling that is the qualifying dwelling-house in relation to the lessee.
The lease must be of a dwelling and must give the lessee (or lessees) exclusive use of the dwelling.
Further conditions apply to shared ownership leases, depending on the detailed terms of the lease: see SDLTM27030