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    • ABBF08291
    • By ABBF08291 11th Oct 16, 3:09 PM
    • 20Posts
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    ABBF08291
    Stamp duty on concessionary purchases
    • #1
    • 11th Oct 16, 3:09 PM
    Stamp duty on concessionary purchases 11th Oct 16 at 3:09 PM
    Hi,

    What are the rules regarding SDLT due on concessionary sales / inter-family sales, where the sale price is below market value? Do LTVs still have to be "properly" maintained, or does it differ from lender to lender?

    E.g. a property owned by parents with valuation of £1million, parents wish to sell to their child the house for £500k thereby gifting the remaining £500k to the child during the sale. Is the LTV 50% or 100% ?

    Based on a sale price of £500k, can the child raise £500k via a mortgage and still be viewed of having an LTV of 50%, or would the sale need to satisfy lenders "deposit" requirements e.g. minimum LTV of 90% so sale price has to be minimum of £555k (on which the SDLT is then calculated).

    Thanks v much.
Page 1
    • kingstreet
    • By kingstreet 11th Oct 16, 3:15 PM
    • 30,009 Posts
    • 15,954 Thanks
    kingstreet
    • #2
    • 11th Oct 16, 3:15 PM
    • #2
    • 11th Oct 16, 3:15 PM
    SDLT always based on actual consideration, amount paid not true value.

    LTV can be based on concessionary purchase price divided by market value by many lenders as long as surveyor agrees.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Thrugelmir
    • By Thrugelmir 11th Oct 16, 3:22 PM
    • 51,207 Posts
    • 42,984 Thanks
    Thrugelmir
    • #3
    • 11th Oct 16, 3:22 PM
    • #3
    • 11th Oct 16, 3:22 PM
    E.g. a property owned by parents with valuation of £1million, parents wish to sell to their child the house for £500k thereby gifting the remaining £500k to the child during the sale.
    Originally posted by ABBF08291
    Is this a second property?
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • ABBF08291
    • By ABBF08291 11th Oct 16, 3:50 PM
    • 20 Posts
    • 0 Thanks
    ABBF08291
    • #4
    • 11th Oct 16, 3:50 PM
    • #4
    • 11th Oct 16, 3:50 PM
    Is this a second property?
    Originally posted by Thrugelmir
    This is parents primary residence and their only UK property, selling to child (who is a first time buyer). Parents relocating to one of their properties owned abroad.
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