Decision details

Cabinet Member Report (CMR) seeking approval to provide additional equity/disbursement to all leaseholders to cover all Stamp Duty liabilities to improve the reservations and the sale terms to Returning Leaseholders in Phase 1 of Ebury Bridge.  

Summary of decision

The Cabinet Member for Regeneration and Renters has approved the additional sum of £616,775.00 up to a maximum of £650,000.00 (to allow for changes in property values and SDLT rates) being made available to the 14 Returning Leaseholders to cover the SDLT Liability Gap; and that the Additional SDLT Disturbance Payment will be secured by a charge on each relevant property and will be fully recoverable by the Council upon the sale of the Returning Leaseholder’s property or earlier at the discretion of the Returning Leaseholder.

Reasons for decision

The Council considers that immediately requiring Returning Leaseholders to pay the balance of the full stamp duty liability when they purchase their new property would be detrimental to the Returning Leaseholders, affect the Returning Leaseholder’s affordability and potentially prohibit them from returning to Ebury Phase 1.

Through this decision the Council will provide an Additional Stamp Duty Land Tax (SDLT) Disturbance Payment to all 14 Returning Leaseholders to cover the SDLT Liability Gap for the properties being purchased in Phase 1 of the Ebury Bridge Estate.