Frustrated. What would you do?

Clairy

We have had two sales fall through because both sets of buyers couldn't seem to get their finances in order.

This week we received a good offer, from a family who accepted the Stamp Duty laws (sale price £258,000) and were happy to pay. Things have moved quickly since: solicitors appointed, searches underway, mortgage finance agreed, surveyor booked.

Today they came to see us after visiting their mortgage company (The Nationwide) who have advised them they would be better paying £250k for the house, and £8k 'under the table'. They now, obviously, want to do this.

I'm really cross, actually. We're not very comfortable with this at all, and it looks as though our sale might fall through. Our Estate Agent thinks we're being uptight.

Can I do anything about this? Any constructive way forward / person to complain to? Or do we just have to take a big bite of the poop sandwich again? :mad:

Hereward

This is probably going to sound evil, but couldn't you continue with this sale, and one you have completed report your new buyers, and possibly Nationwide, for tax evasion? This way, you would still achieve the offer price, but get some satisfaction from knowing that the buyer's didn't avoid the stamp duty?

Clairy

:rotfl: that is a little cruel. But I am hopping mad! We are paying our stamp duty, I don't want to be put in this position.

If we did go through with the deal, as you suggest, would we not be implicated too? What would our punishment be?

Alan_M_2

It's tax evasion, (which I think is encompased under the umbrellas of Fraud) not looked on particularly well.

Particularly unsavoury to actually have a mortgage company suggest it, it goes to show how socially acceptable white collar crime is.

I get similar instances on a daily basis with VAT, I'm offered cash on close to 75% of non business sales. I run a legitimate business so don't go that route even though it costs me sales.

I do find all this mildly amusing.

hostie

Just drop your price by 8k. It isn´t that much money and it would save you a lot of grief.

jellyang

I have had this problem too.
My EA basically said he couldn't suggest it but what us & the buyers agreed was nothing to do with him.
I asked around & people said they had done that & if the Taxman asks then you sold your buyers some furniture but I am not sure if that will be accepted. The thing that I thought of was what if the buyer then denys all knowledge of your 'agreement'. Then you lose & they gain.
Luckily for me another buyer came along & didn't bat an eyelid at the stamp duty.
As I repeated to many people 'its not my fault, I don't get to keep the money, it is a tax'
I can't beleive a Building Soc actually suggested it.

silvercar

look marginally less dodgy if you sold for 250k plus a sensible amount for fixtures and fittings ( 1 or 2k) an your buyers agreed to pay your estate agents fees.

lynzpower

hostie wrote:

Just drop your price by 8k. It isn´t that much money and it would save you a lot of grief.

this is moneySAVINGexpert mate. would you just give away eight thousand pounds for no reason?

leftieM

I think the Nationwide should be ashamed of themselves suggesting tax evasion to someone. I would hold tight initially - tell your buyers that the taxman will suss them out and they were initially happy to pay the stamp duty.
Silvercar's idea is good. Get them to pay all of your costs if you want.
Hold off on that poop sandwich for a bit. It doesn't sound too good!

jyonda

Perhaps you are actually being unrealistic. Your house is worth what someone is prepared to pay and given that people don't want to pay 258k because of the SDLT implications would suggest you are asking too much. Unfortunately for you your house is currently in a difficult price bracket and if you can wait a bit for it's value to rise then I would advise you to sit tight. If you have other pressures then perhaps decide on a cutoff date to drop to 250k and ou should have a sale in no time.
BTW, SDLT is on the amount of the whole transaction not the separate articles such as 250k for the house then a further 2k for the appliances etc. Anthing else is fraud and you don't really need that kind of stress.

Debt_Free_Chick

I think you should tell them that what Nationwide suggest is probably tax evasion and that they should ask their solicitor what they advise.