I am purchasing a residential property from a vendor who has used the now infamous A-B-C sub sale SDLT avoidance scheme. My questions are 1) are there any issues i should look out for as a prudent purchaser and in particular 2) does the use of the scheme adversely affect the vendor’s title to the property? The vendor bought the property in May 2012 and received a disclosure letter from HMRC confirming disclosure of the scheme had been made in November 2012.
Yes there are several important issues to watch and the question of what title you will get also needs consideration. However one would need to know the nature of the scheme used by your vendor (there were various schemes in use) and see the actual scheme documents in order to give meaningful advice. If you are using a mortgage then the mortgagee’s solicitor will have to go over this carefully as well.