Advice please folks.....

diesel24

My fiancee & I are FTB, we've found the right house, made the offer two weeks ago which has been accepted and all is good.
However, we have an issue regarding stamp duty. The vendor for our house is unwilling to move out before xmas (fair enough now, but he had 4 weeks from the date he accepted our offer, no worries though) so we have a date of the 22nd January for completion. I could complete the sale before New Year to avoid the stamp duty, but as I discussed with our solicitor that would mean I'd still have to pay a month's rent, plus a month's mortgage, for a house I can't live in until the end of January.
So our solicitor has come up with an idea which I'd really like some advice on - she proposes that I pay the 10% deposit on December 22nd and the missives etc will be signed, then she'll draw the rest of the funds on January 22nd. That way I complete before the end of the year (avoiding stamp duty) but don't start paying the mortgage until February, only paying a month's rent fro Jan which is fine.

My question is, is this all ok? The vendor is happy to sign everything over in Dec on receipt of the deposit, the remainder of the mortgage funds don't get drawn until Jan, will I still avoid the stamp duty this way?
(Which is £1550, compared to a month's rent of 500.....)

pawpurrs

You cant complete and let the vendor stay in the house for a month without a tennancy agreement, effectively you are only exchanging contracts, in which case the stamp duty is liable, I cant see a way round this either you complete, fully before the 31st or you will be liable for stamp. If it was part of the deal when you offered that completion had to be before the 31st and the vendor has reneged on this deal, then I would ask them to pay it, if it wasnt made clear at the outset, then I am afraid you will just have to pay it.

diesel24

Thanks for your reply - apparently there's some very rarely used "right to remain" or something similar which the vendor (or more likely his solicitor) is using (never heard of it) which gets round the need for a tenancy agreement or similar. This is in Scotland if that makes any difference......
Do you think it would be a good idea to get it in writing from my solicitor that I won't be liable for payment of stamp duty, and if it turns out I am then the vendor reduces the price accordingly?

clearing_out_my_pockets

If your solicitor isn't drawing the funds until 22nd January and you're not paying your mortgage until February, surely that means you're not completing until 22nd January?

diesel24

Well that's it exactly. That's what I'm confused/concerned about. According to my solicitor we'll sign missives etc when the deposit is paid though..........