Part exchange help pls

ethansmum

We are interested in a house costing £350k, our house is on the market for £210k. Ideally we would like the difference to be around £130k rather than £140k.

The seller wants to part-ex down the chain so to speak. He had a house for £560k and part ex'ed that one for this one we want (he was desperate to sell his big house). It seems to us crazy to have 'lost' out by paying the stamp duty for the £350k house- hes had the house up for sale since he bought it. So what I want to know is this- is there some sort of loop hole he is using not to pay the stamp duty if he part exchanges again? Will I be able to use that against him as a bargaining tool? He's a mortgage advisor so probably is very clued up on this sort of thing.

Any ideas?? Many thanks!
Tracy

Doozergirl

I knew I'd seen this before

http://forums.moneysavingexpert.com/showthread.html?t=134735

see distilled's last comment

ethansmum

Thanks Doozergirl!

One last question, both of the houses (ours and his) are with the same estate agents. Usually I would get the estate agent to do all the negotiating, but feel that on this occasion the EA would not be 'on our side' so to speak. Is it okay to negotiate with each other without the EA being involved?
many thanks!

silvercar

The exemption of stamp duty is generally only for builders, not for private individuals:

"Part exchanges
Parties who exchange land are each liable to SDLT on the full consideration for the land they acquire.
Under stamp duty there was a general relief for part exchanges. Under SDLT this is restricted to house builders who acquire a home as part of the consideration for the sale of a newly constructed home.

The house builder is not liable to SDLT, subject to some conditions. The purchaser of the new house then has to pay SDLT on the value of the old house plus the additional consideration.

The government has announced that there will be a similar relief for companies that specialise in buying residential properties from the personal representatives of deceased individuals and selling them on.

Chain-breaking companies
Some companies buy residential property to prevent a chain of residential transactions from failing. A short time later, the chain-breaking company sells the property on.

Subject to certain conditions, the chain-breaking company is not liable to SDLT. "

ethansmum

MMMmmm thanks Silvercar, what a pity! I was hoping to use that against him