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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 30007
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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Can you assist me in finding out few details for a property

Customer Question

hello
JA: Hi. How can I help?
Customer: Can you assist me in finding out few details for a property that I would like to purchase such as if the properties are considered commerical or residential and how much is the payable stamp duty
JA: What are you located? It matters because laws vary by location.
Customer: Lonodn
JA: Has anything been filed or reported?
Customer: No for me to proceed would like the assistance on the questions above
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: nothing else thank you
Submitted: 9 days ago.
Category: Property Law
Customer: replied 9 days ago.
If i give you the full address and postcode can you source the information requested?
Expert:  Joshua replied 9 days ago.

Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.

I will be able to assist with some of the above, though in particular, planning use status is not maintained as a searchable online database by most councils in this may necessitate you contacting the local authorities planning department to confirm the position depending upon the council involved.

  1. May I confirm if you would be purchasing as an individual or a company please?
  2. in the case of the former, would any of these properties be your principal main home?
Customer: replied 9 days ago.
Thank you for your reply. We will be purchasing the properties as a company. Currently what we know that the properties are 2 Freehold building with license to be used as service apartments. I just proof documents that the porperties are listed as commerical not residential and I want to know exactly whats the stamp duty is it 5% or 15%? The offer that we would place is 35,750,000£.Would appreciate if you can assist.
Expert:  Joshua replied 9 days ago.

Thank you. I can certainly assist with the stamp duty element. In relation to the use categorisation, it will depend upon the location of the properties as regards ***** ***** relevant local authority maintains its records online or not.

  1. Would you like to give me the addresses in question so I can check?
  2. in addition, would you confirm the purchase will be in one transaction for all buildings involved or separate transactions?
Customer: replied 9 days ago.
The buildings will be purchased in one transaction (they are 2 buildings)
17 and***** Mayfair, London, W1J 7RS17 will be purchased for 13,750,00020 will be purchased for 22,000,000Also, on the coouncil records it shows that they are serviced appartments. Is that a proof that they are commercial? What I am looking for is a legal docuemnt that states that the two porperties are commerical and the value of the stamp duty and the ground bases for the legal document. Is that something that you can do? Also, I need it ASAP thus when can you provide me with the details and how much will this cost to have it in writing sent to my emial?
Expert:  Joshua replied 9 days ago.

Thank you. The planning use for No. 17 according to council records is Basement use as a housekeepers/caretakers flat (sui generis), part basement (rear) and ground floor as a restaurant (Class A3) and 1st, 2nd and 3rd floors as 9 serviced apartments for short term letting purposes (sui generis).

Unfortunately, there are no published records as regards ***** ***** for N0. 20. I'm not certain if it is considered part of No.17 for the above purposes or entirely separate. It is likely with your knowledge of the accommodation, you will know whether the above relates to both buildings or just one. If just one, you will need to consider contacting Westminster Council's planning department to ascertain the use class for No. 20. -(###) ###-####6500

In terms of SDLT an SDLT rate of 15% applies to corporate purchases of residential properties over £500,000 unless you can show that the buildings are to be used for any rental business so this will be key. the 50% charge does not apply to commercial properties. accordingly, providing the surcharge does not apply the effective SDLT rate should be 5% being £1,877,000.

Customer: replied 9 days ago.
Thank you. Thus, for the building to have the sevriced license it means its commerical unit? Also, 17 and 20 are seperate buildings on the same road and they are functioned in the same way as serviced appartments
Customer: replied 9 days ago.
Also, can i have this in a proper format?
Expert:  Joshua replied 9 days ago.

May I confirm precisely what you mean by a commercial unit? i.e. what exactly are your requirements in this respect?

Customer: replied 8 days ago.
I need the legal requirements that states that I need to pay 5% Stamp duty not 15%
Expert:  Joshua replied 8 days ago.

you can find the HMRC tax manual on the point at the following link:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09535

Customer: replied 8 days ago.
If i want you to find out if the property is commercial and you confirm that the stamp duty is 5%. I can pay extra for this service.
Expert:  Joshua replied 8 days ago.

I regret that I am limited to providing legal information through the service. It seems to me, particularly in view of the size of the transaction, you should consider retaining an accountant or lawyer formally in this respect to advising in connection with the same. Generally I would comment however that do consider that another exemption is for residential properties which are intended to be let out as a business:

https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09555

Customer: replied 8 days ago.
Thank you very much for your assistance
Expert:  Joshua replied 8 days ago.

I'm glad the above answers all your questions for now. If you have any follow up questions please revert to me.

Expert:  Joshua replied 7 days ago.

Thank you again for visiting JustAnswer and see you again in the future I hope.