Stamp Duty Calculator and Q&A discussion 31 March 2010 at 10:12AM edited 31 March 2010 at 12:06PM in House buying, renting & selling 139 replies 110K views

sirmosh

flyingflea wrote: »

I'm a first time buyer in the middle of buying a house. Would I have to complete before 24 March 2012 to save the stamp duty or do I just have to exchange contracts before then?

You will need to complete.

Collection

Hi

My parents added my name to their property's title deed.
Does this disqualify me from being a "first time buyer" ?

thanks

sirmosh

Collection wrote: »

Hi

My parents added my name to their property's title deed.
Does this disqualify me from being a "first time buyer" ?

thanks

For the purposes of being exempt from stamp duty on a property purchase under £250,000 yes. Mind you, it's pretty much too late to make use of that if you haven't already started the process anyway.

Mobeer

If I click on the ? next to first time buyer in Internet Explorer 9, or Firefox 3.6, I get a popup box that is completely blank except for an X buton. Click on the X button and the popup box is filled with text, then closes before the text can be read.

edit:
plus the text at the end about "Is it the same all across the UK?" could do with mentioning disadvantaged areas for which the answer given is wrong

Chopgate007

Just let me run this past you and see what you think.... It is to do with the Stamp Duty and the Fees associated with the forms etc.

Threshold is £125,000 as you know.

From what I understand the "consideration" is worked out on the EXISTING mortgage, which today stands at around £210,500
My Ex wants £45,000 out of the place.

So from what I see there are 2 options...

Option 1.
Leave the mortgage as it is, so the consideration is £210,500/2 plus the £45,000 that I will provide to my ex. making the considertion £150,250.
I have to pay stamp duty at 1% of that, namely £1,503, plus the £90 fee for forms, so I pay £1,593
The approved mortgage from the new lender is £213,000, plus £750 buffer, so thats £213,750
The new lender pays the old lender £210,500 leaving a surplus of £3250 payable to me. (to help towards the fees!)


Option 2.
Use the £45,000 I have, (plus a bit more) to pay off say £51,000 from the old mortgage so the outstanding on the mortgage would be £210,500 - £51,000 leaving £159,500 outstanding.
So the consideration is then £159,500/2 plus the £45,000 that I will provide to my ex. making the considertion £124,750, i.e. below the threshold, saving me the Stamp Duty and fee of £1,593.
The approved new mortgage is £213,000, plus £750 buffer, so thats £213,750, as before
New lender pays old lender £159,500 leaving a surplus of £54,250 payable, £45,000 to my ex and £9,250 to me.
The net result is it saves me £1,593, and believe me I need it!

The old mortgage allows for lump sums to be paid off so no penalties there. Can it be as easy as that? I'm not breaking any rules, regulations or laws here am I?

Thats if I can raise the £51,000 of course!

chestertonb

Hi there

I'm buying 40% (70k) of a new part buy property worth £175k. As per the rules I am a FTB. I understand I've missed the stamp duty window as we couldnt complete in time but I hope to complete in the next 2 weeks.

Can anyone advise what my liability is likely to be? I've read so much confusing and contradictory information.

It's a leasehold property and the lease is 99 years.

Jane_twohig

I have today received a letter from a claims company telling me that My property is in a area which is entitled to disadvantage area relief for stamp duty land tax. Also saying that the stamp duty land tax should not have been payable when I purchased the property if the sale took place after 1st December 2003. I purchased the house in 2010? Is this true as I've never heard of anything like this before?

Bazofts_Revenge

Jane_twohig wrote: »

I have today received a letter from a claims company telling me that My property is in a area which is entitled to disadvantage area relief for stamp duty land tax. Also saying that the stamp duty land tax should not have been payable when I purchased the property if the sale took place after 1st December 2003. I purchased the house in 2010? Is this true as I've never heard of anything like this before?

I too got one of those letters. As I had successfully got my previous home Council Tax Band lowered and got over a £1200 back I figured if I was entitled to my Stamp duty back I would give it a go.

First port of call was HMRC's web site, a quick search for disadvantaged area relief brought up the relevant page. All I had to do was enter my Postcode and it confirmed I lived in such an area.

My next task was to write a letter to the solicitor that carried out the house purchase pointing out the errors they had made and that they should have known about such schemes.

I received a letter back a week or so later and they handled everything else. Approximately 1 month later HMRC have written to me saying I will be receiving a cheque for £1360 + interest.

Note there is a 2 year period in which you can submit the claim to HMRC. I scraped in with 1 month to go but even if I had been too late to claim from them I would have taken it up with the Solicitor as it was there fault.

Bazofts_Revenge

I am pleased to say I have now received a cheque from HMRC for the Stampduty I paid plus interest.

Richard_Webster

ust let me run this past you and see what you think.... It is to do with the Stamp Duty and the Fees associated with the forms etc.

Threshold is £125,000 as you know.

From what I understand the "consideration" is worked out on the EXISTING mortgage, which today stands at around £210,500
My Ex wants £45,000 out of the place.

So from what I see there are 2 options...

Option 1.
Leave the mortgage as it is, so the consideration is £210,500/2 plus the £45,000 that I will provide to my ex. making the considertion £150,250.
I have to pay stamp duty at 1% of that, namely £1,503, plus the £90 fee for forms, so I pay £1,593
The approved mortgage from the new lender is £213,000, plus £750 buffer, so thats £213,750
The new lender pays the old lender £210,500 leaving a surplus of £3250 payable to me. (to help towards the fees!)


Option 2.
Use the £45,000 I have, (plus a bit more) to pay off say £51,000 from the old mortgage so the outstanding on the mortgage would be £210,500 - £51,000 leaving £159,500 outstanding.
So the consideration is then £159,500/2 plus the £45,000 that I will provide to my ex. making the considertion £124,750, i.e. below the threshold, saving me the Stamp Duty and fee of £1,593.
The approved new mortgage is £213,000, plus £750 buffer, so thats £213,750, as before
New lender pays old lender £159,500 leaving a surplus of £54,250 payable, £45,000 to my ex and £9,250 to me.
The net result is it saves me £1,593, and believe me I need it!

The old mortgage allows for lump sums to be paid off so no penalties there. Can it be as easy as that? I'm not breaking any rules, regulations or laws here am I?

Thats if I can raise the £51,000 of course!

I think you can do that legitimately. Just make sure your ex doesn't want a bigger lump sum once the equity in the property is larger!