The SDLT exemptions for alternative property finance need to be updated to give parity with conventional mortgages. Without change, SDLT will distort the market, warns Sean Randall (Blick Rothenberg).
Two types of alternative property finance reliefs exist for SDLT. Their conditions were framed around the two most common forms of Sharia-compliant mortgages. Their aim is to ensure that no more SDLT is payable on the purchase of property than would be payable if a conventional mortgage were used. Since their introduction various start-ups have explored offering alternative property finance to individuals who cannot access or do not wish to access a conventional mortgage. One of the major hurdles is SDLT. This article contrasts the impact of the SDLT rules on two alternative property finance products in the market. One qualifies as a ‘home purchase plan’ the other does not. As we shall see this makes...
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The SDLT exemptions for alternative property finance need to be updated to give parity with conventional mortgages. Without change, SDLT will distort the market, warns Sean Randall (Blick Rothenberg).
Two types of alternative property finance reliefs exist for SDLT. Their conditions were framed around the two most common forms of Sharia-compliant mortgages. Their aim is to ensure that no more SDLT is payable on the purchase of property than would be payable if a conventional mortgage were used. Since their introduction various start-ups have explored offering alternative property finance to individuals who cannot access or do not wish to access a conventional mortgage. One of the major hurdles is SDLT. This article contrasts the impact of the SDLT rules on two alternative property finance products in the market. One qualifies as a ‘home purchase plan’ the other does not. As we shall see this makes...
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