Stamp Duty - Dodgy Advice from agent??

averagepunter

I am considering purchasing a property that is on the market for just over £260k. The estate agent has suggested that it may be possible to do a deal on the stamp duty. When I asked for clarification he quoted the following example:

Say you agree a sale price of £257k - both parties complete the deal based on £250k, but a separate payment of the 7k is made directly to the vendor without solicitor involvement.

Now maybe I'm being naive, but to my mind this is fraud and the only one that would be in the dock is me. I'm not sure I'm prepared to go down this route.

That said, I would be prepared to offer £250k plus £1.5k for carpets, £250 for light fittings etc. Does anyone have any experience of the valuations required for these items?

Cheers

John_M_Business

You have to be able to back up any offers for items with reasonable prices. It may be good to itemise things in the way that you've done it.

Reasonably new carpet in 4-5 good sized rooms could go for £1.5k, but rotting stuff in a single room would be 'valued' at less than that. Fixtures and fittings are a way forward - and legal - and it can also give you a chance to negotiate extra items (especially white goods). Even if you actually ended up selling some of the items - even back to the vendor, you would still have to prove the accuracy of your estimate.

What the Estate Agent has offered is totally irresponsible and illegal and, were you to be picked up on it, I'm sure he'd be the first denying any knowledge of it whatsoever.

averagepunter

You have to be able to back up any offers for items with reasonable prices. .

I understand I must be able to justify the prices paid for 'extras' if the Revenue challenges, but do I need to have any supporting documentation to support the transaction as part of the normal process (i.e In the absence of a Revenue query?)

Robert_Sterling_3

Offer £249.995

averagepunter

Offer £249.995

I probably will - however, this in in an area where properties are still acheiving an average of 98% of asking price. We have already had an offer rejected on another property at 96% of asking price.

LD

ask your solicitors how to do it legally, the amount is relatively small and (within reason) the chattels are worth what your willing to pay for them and its not you that has to declare that income to the IR

John_M_Business

I understand I must be able to justify the prices paid for 'extras' if the Revenue challenges, but do I need to have any supporting documentation to support the transaction as part of the normal process (i.e In the absence of a Revenue query?)

No. However you must be confident in your ability to demonstrate, if challenged, why you valued certain things at a particular level - therefore I would recommend putting a list together of the Fixtures and Fittings, and putting values against them as a part of the process (so you can also demonstrate that you were working out reasonably costings for the F&F, not just plucking numbers out of the air).

Also, quick tip: it's generally better to itemise... i.e. "10 curtain rails at £30 each = £300" sounds more plausible than "curtain rails: £300".

WelshConsumer

Why would you ever hand over the remaining sums. You agree a price of £250 through the estate agent - on what basis would you agree the other sum. If you had no agreement then you would not have to pay it - I presume.

Personally speaking I would get everythin in writing and checked out by your solicitor the costs of getting it wrong are too big.

GDB2222

The asking price for this house is in a difficult area. If you pay the full stamp duty, you pay £5k more duty than for a property worth a few thousand less. You cannot be the only buyer who will baulk at this.

Offer £249,999 + a reasonably supportable figure for the furnishings, white goods, etc. Ask your solicitor, but IMHO fixtures and fittings are part of the house and need to be included in the sale price. Carpets, unless stuck down, are just outside that category of being a fixture.

If that won't secure the property, then walk away. It may well be on the market for £200k next year.

averagepunter

Well, we made the offer at £250k plus approx £1.75k for carpets, curtains etc. It was rejected. Seems there is a bit of a domestic going on - she wants to sell asap, he will only sell if he gets top dollar.

So we have walked away. Who knows they might change their mind when no-one else has made an offer by mid-Jan.

Thanks all.

deemy2004

When its cold and snowing, and no ones viewing, they wil give your a call