House swap??

Bobbykins

Hi, first time posting on this board so if I'm in the wrong place I'm sorry!

We've had our house on the market a while and been approached by someone with the suggestion of a house-swap. Not a part exchange but a straight swap. Their house, on the face of it, seems to be just what we are looking for and the values are genuinely about equal.

Would appreciate advice from any legal eagles or anyone with any experience of doing this? Is it as straightforward as it sounds?

Also, what would be the situation re stamp duty? Both properties are worth around £220k. Would we both have to pay stamp duty as if it were a normal sale on both houses?

Would really appreciate any input. Thanks.

baileysbattlebus

Yes you can do a straight swap, yes it is as straightforward as it sounds. It generally just follows the normal conveyancing rules.

You and the owner of the other house will be both pay SDLT on the full value of the property aquired.

Are you with an EA, if so was the person introduced to you by them?

If so, you will need to pay EA fees - if not, check your contract with the EA and see what it says - I don't understand all the ins and outs of EA's contracts but other people on here do.

We did it BTW, the houses were different values, but it was the most stressless house sale and purchase we have had since we lived in Scotland.

Bobbykins

Thanks for the info bbs - we are with an EA and yes, they did introduce them, so I guess we will have to pay up, fair enough.
It's early days yet so we will have to see what happens but, fingers crossed it works out OK.
thanks again
Bobby

PasturesNew

There was an instance on these forums some months ago where somebody had seriously underpriced their house on a swap to get round stamp duty.

Some might say it's only illegal if you get caught and I'd be the first to say "Oh, but you must pay your stamp duty, it's only fair/legal". However, in your case, I'd be tempted to offer each other £170k for each other's houses, thereby paying none.

For paying EAs and stamp duty, it would work exactly the same as if the two sales were not related. EAs will want paying, stamp duty will want paying, the amounts are the same as if you were each just simply buying/selling a house, forget it's a swap as that's a red herring.

Bobbykins

Well now, Pasturesnew, I can't say that it hadn't crossed my mind that some uscrupulous people might consider that route ! Me, I'm with you on the thought that I must, of course, pay my full dues in stamp duty
thanks
Bobby

baileysbattlebus

Bobbykins wrote: »

Well now, Pasturesnew, I can't say that it hadn't crossed my mind that some uscrupulous people might consider that route ! Me, I'm with you on the thought that I must, of course, pay my full dues in stamp duty
thanks
Bobby

Both properties should be properly valued at the outset, if you are mortgaging your swap you will need to do this anyway - in case the Revenue and Customs come to you later and try and say you sold the house under value, you will have the evidence of your valuation to back you up -

In todays market the valuation may be less than you think anyway. There seem to have been a few threads lately where valuations were coming in at a good bit less than buyers were expecting.