Stamp Duty and bust

Catbells

geoffky wrote: »

do what i done and get the sellers to pay stamp duty...

How did you do that?

mynameisdave

Well using your figures for example I would guess it works something like this;

The house is on at 530K and will cost you £21,200 in stamp duty so £550k in total
If you can agree a price of £500K you pay £15k in stamp duty and a total o £515k

You could however, make an offer of £530k on the proviso that the seller pays stamp duty. That way they get ~£510K. Its unlikely that they will sell for £530 without due to it being so close to the threshold and they still get more than they would selling for £500K

Unlike the avoidance schemes that are about you won't find HMRC knocking at your door because they havent lost out any money. SDLT has still been paid but by the other party.

Catbells

mynameisdave wrote: »

Well using your figures for example I would guess it works something like this;

The house is on at 530K and will cost you £21,200 in stamp duty so £550k in total
If you can agree a price of £500K you pay £15k in stamp duty and a total o £515k

You could however, make an offer of £530k on the proviso that the seller pays stamp duty. That way they get ~£510K. Its unlikely that they will sell for £530 without due to it being so close to the threshold and they still get more than they would selling for £500K

Unlike the avoidance schemes that are about you won't find HMRC knocking at your door because they havent lost out any money. SDLT has still been paid but by the other party.

Thanks Dave. Can I let the EA in on this proposal too?

Catbells

This property has reduced to £499k today and I want to make an offer. What should I offer anyone?

Doozergirl

Catbells wrote: »

This property has reduced to £499k today and I want to make an offer. What should I offer anyone?

£480,000. Try and get it for £490,000 if you think it's worth the £500k

Never make another offer in the same conversation that you've had a previous offer rejected.

And if and when your first offer is rejected, ask immediately what they will accept. And then when you offer again, offer less than that price

Good luck!

mrstinchcombe

Quote:
Originally Posted by geoffky
do what i done and get the sellers to pay stamp duty...

Catbells wrote: »

How did you do that?

I assume the property was just above a stamp duty threshold and the sellers stated they would pay the stamp duty to avoid an offer on the threshold (if a property is on for £135k it is unlikely to sell for anything other than £125k to avoid SD, if the seller offers to pay the SD then any offer above £125k + £1,250 would make it worthwhile for the seller).

One way of looking at it is that the seller paid the SD not the buyer, the other way of looking at it is the buyer paid over the odds as its now just over a SD threshold.

In fact the whole situation could apply to my own circumstances, I should imagine my property would be put on the market for £135k-£140k. Should I offer to pay the SD to discourage offers of £125k?

Catbells

Doozergirl wrote: »

£480,000. Try and get it for £490,000 if you think it's worth the £500k

Never make another offer in the same conversation that you've had a previous offer rejected.

And if and when your first offer is rejected, ask immediately what they will accept. And then when you offer again, offer less than that price

Good luck!

Thanks for suggestion Doozergirl.

Its not the house of my dreams but its a 'nice' house in a safe local area where I've lived for a long time. The price reduction means I can afford to enhance it too. I've seen other houses which are much cheaper because of their poor condition and are potentially dream houses but I don't think I'm up to running a building site over the next year somehow so will prob go for middle route.