How to get stamp duty paid on a new build

zicok

Hey, we have agreed a deal on a new showhome, the mortgage offer and projected completion date is in place, but we want to try and get the stamp duty paid by the builders, but this obviously sounds a little cheeky when we ant to buy the contents of the showhome too!! any ideas on how to play this?

thanks

anselld

zicok wrote: »

we have agreed a deal on a new showhome

If you have agreed a deal already I don't see how you have any negotiating position. Why should they throw in anything else?

G_M

How to get stamp duty paid on a new build

The way to get it paid is to write a cheque payable to 'HMRC' for the required amount.

That should get it paid (unless it bounces of course).

JQ.

If you succeed, you'll need to inform your mortgage provider, as it will affect your mortgage offer - not doing so would be mortgage fraud.

The developer will know this, and is therefore unlikely to change the deal now. No harm in asking, but you're now in a poor negotiating position. I imagine the only way in succeeding is to play hardball and be prepared to walk away. It will slow the sale down as your mortgage provider will need to give you a new offer.

BadgerFace_2

Did you forget you needed to pay this or something?

If you cannot afford the stamp duty and therefore the deal will fall through otherwise, they MAY pay it; but as has already been said, you'll need to tell your mortgage company, who may well insist on a new valuation, as the surveyor will take this into account on his report and adjust the value of the property accordingly.

The only bonus is that if it's the show home, it's probably the last plot and they'll want to be out of there asap, so may take the hit.

Very late in the day to be doing this...would you be happy if they came and asked you for a higher price after the deal was done?

zicok

so it may be better to angle for the free contents, as these would be purchased seperatly?

zicok

also why is the stam duty included in the mortgage offer? as this is paid seperatly by ourselves?

Doozergirl

zicok wrote: »

also why is the stam duty included in the mortgage offer? as this is paid seperatly by ourselves?

It's an incentive. Much like a gifted deposit. They are giving you money towards the purchase.

G_M

zicok wrote: »

also why is the stam duty included in the mortgage offer? as this is paid seperatly by ourselves?

But if you don't pay it you are changing (reducing) the purchase price.

BadgerFace_2

Stamp duty is a benefit (read discount, as it is physical cash they have to give to HMRC) and some mortgage companies will just take it directly off the value. The same applies for free contents or anything else, it ALL has to be disclosed to the lender or as has been pointed out it will be fraud.

It looks like one of a few things to me-

1. You've underestimated quite how much buying a house costs and need some 'extras' to make the deal work. In which case, talk to the builder, they may help.

2. You're pushing your luck...and it may work, just remember 'what goes around, comes around'


To be honest, if you were buying my house and started asking for more after we'd agreed a deal, without GOOD reason, I would tell you where to go.

JQ.

zicok wrote: »

so it may be better to angle for the free contents, as these would be purchased seperatly?

. . again, you would need to inform your mortgage provider - not doing so would be mortgage fraud, which these days they are taking alot more seriously.

The time to negotiate these things was before you got your mortgage offer. The developer will know this.