We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING:
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour.

Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Buyer asking for price reduction after exchange

2

Comments

  • Gwhiz
    Gwhiz Posts: 2,322
    Part of the Furniture Combo Breaker
    Forumite
    silvercar wrote: »
    The stamp duty on that will be loads more than 20k; remind him that he has 28 days from completion to pay the stamp duty, so he can pay you in full and then scramble around to raise the rest of the stamp duty.

    Actually the stamp will be exactly £20K. Funny that :)
  • cazuk11
    cazuk11 Posts: 129 Forumite
    Gwhiz wrote: »
    Actually the stamp will be exactly £20K. Funny that :)

    I'm looking to buy a house thats around the £400,000 mark. I worked out stamp duty to be £12,000. Is that right? I'd have thought a £1,000,000 hours would have more than a £20,000 stamp duty on it or do I have my maths all wrong (which I probably have).
  • maninthestreet
    maninthestreet Posts: 16,127
    Part of the Furniture
    Forumite
    For a residential property, with a purchase price of £1M, the stamp duty would be £40,000. It's possible the £1M property the OP refers to is not the OP's property, but their buyer's current property they are selling.
    "You were only supposed to blow the bl**dy doors off!!"
  • GDB2222
    GDB2222 Posts: 27,302
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    Over £1m, stamp duty is 5% now.
    No reliance should be placed on the above! Absolutely none, do you hear?
  • Gwhiz
    Gwhiz Posts: 2,322
    Part of the Furniture Combo Breaker
    Forumite
    DOH is me. Worked out that 4% of £1M was £20K..

    Of course it is £40K
  • Gwhiz
    Gwhiz Posts: 2,322
    Part of the Furniture Combo Breaker
    Forumite
    cazuk11 wrote: »
    I'm looking to buy a house thats around the £400,000 mark. I worked out stamp duty to be £12,000. Is that right? I'd have thought a £1,000,000 hours would have more than a £20,000 stamp duty on it or do I have my maths all wrong (which I probably have).

    £12K - correct.
  • GDB2222
    GDB2222 Posts: 27,302
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    Gwhiz wrote: »
    DOH is me. Worked out that 4% of £1M was £20K..

    Of course it is £40K

    Maybe you should apply for the next series of The Apprentice?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • DizzyDasher
    DizzyDasher Posts: 119 Forumite
    Did your estate agent not ask him for evidence of sufficient funds? When we bought ours the seller's estate agent did - and we included stamp duty and other costs in that (hmmm... maybe if we hadn't they wouldn't have asked, but surely if you are going to get evidence of funds then you would want evidence that all relevant costs can be met to avoid this kind of situation?) Our seller's agents were fine with internet print-offs etc. so it was in theory forgable, but more effort than most people would put in (particularly if they were only 2% short).

    If they didn't ask for this I'd be giving your agent a hard time too!!! My understanding* is that your buyer is responsible for any costs you incur (including any costs imposed on you by your seller due to his losses if completion can't happen on time) - but still a massive pain in the proverbial.

    If he HAS shown proof of funds to your agent then there is even less excuse ... what, did he lose £20k down the back of the sofa?!? :wall:

    Good luck ... sorry you are going through all this stress. I'm sure it will all work out in the end. Contracts should protect you financially - just hope it's not too painful!!

    DD

    *IANAL
  • jimjames
    jimjames Posts: 19,475
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Forumite
    DizzyDasher wrote: »
    If he HAS shown proof of funds to your agent then there is even less excuse ... what, did he lose £20k down the back of the sofa?!? :wall:
    I guess it is possible that the funds were shown and were there but could have been in shares, the subsequent drop in prices has left them short. Would be a completely daft thing for them to rely on the price of shares being static but certainly not beyond possibility.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • cazuk11
    cazuk11 Posts: 129 Forumite
    Gwhiz wrote: »
    £12K - correct.

    That's a shame on the £12k... I hoped I'd got my maths all wrong and it would be less ;)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 355.8K Banking & Borrowing
  • 254.9K Reduce Debt & Boost Income
  • 456.2K Spending & Discounts
  • 248.3K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 179K Life & Family
  • 263.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture