How much should we offer?

Steve_Andrea · 30 March 2010 at 12:07PM

Hi,

Me and my partner are looking to by our 1st house together.

I am a first time buyer but my partner has previously owned a property which was sold a few years ago at a loss.

With the new Stamp duty rules we where hoping to qualify as FTB’s.

My 1st question is, if we get a joint mortgage but only put my name on the deeds will we have to pay Stamp duty?

My 2nd question is, we’ve been looking to buy for 3-4months now but the local estate agents aren’t very good and keep trying to get us to spend more money….

Originally we where looking at houses around the 200k mark but within weeks of looking estate agents started asking us to up our budget to 220k+

So we spoke to the mortgage broker at he pre-approved us for 220k with a 20% deposit.

However after this the estate agents started trying to show us stuff at 240K saying we could put offers in and probably get them for a little more than we had….

This has happened 3 times now and we are now at £260k with the view to offering below £250k to avoid paying the higher rate of stamp duty.

The thing is, when we looked at a property for £255k the estate agent said it was priced really well and the owners wouldn’t be open to offers much below £250k which doesn’t make a great deal of sense?

We are a little confused….

What’s the average you can expect to get knocked off? I read 5% is a good starting point?

We found a house on at £235k…. how much should we offer?

Thanks for any advice you can give.

We’d love to know if anyone else is experiencing these issues with estate agents.

Steve & Andrea

Cannon_Fodder · 30 March 2010 at 12:19PM

1. A joint mortgage requires joint names on the deeds.
2. Nothing new in that.

To have one name on the deeds, will need 1 name on the mortgage = less borrowing power.

Revisit what you can really afford. Not what you can be offered to borrow.

Offers start upto, sometimes over, 10% under asking price. Sold prices around -7% under asking prices.

Read this excellent thread for the whole "what to offer" subject; http://forums.moneysavingexpert.com/showthread.html?t=1907059

edited to add; Go to a non-estate agent mortgage broker for a second opinion.

Steve_Andrea · 30 March 2010 at 1:38PM

Thanks for the advice.

Im sure im not the only person who is losing out on the stamp duty excemption due to partners not being a first time buyer.

Does anyone know how the new rules will be policed or if there is anything I can do?

As for houses, the link above was really useful.

Can anybody advise on the 3 houses below regarding offers etc