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Statutory notice/stamp duty query (Scotland)
pokey128
Posts: 482 Forumite
Hi all
We have viewed a flat at offers around £280k and want to offer £250 for it to avoid the increase in stamp duty if possible. If they turn down the offer I was thinking of suggesting that we take over responsibility for paying the stat notice (roof repair est £8k) but before I do I need to find out if stat notice attaches to the building or if it's the owner ( in which case there is no point as it would be seen as a transfer of debt and ve included for stamp duty purposes) but if it's the building that is due the payment then surely it will just be a repair and thus free from stamp duty. I should state that the owner has confirmed that they will pay it but as the workhasnt yet been done can't pay for some time.
Thanks
We have viewed a flat at offers around £280k and want to offer £250 for it to avoid the increase in stamp duty if possible. If they turn down the offer I was thinking of suggesting that we take over responsibility for paying the stat notice (roof repair est £8k) but before I do I need to find out if stat notice attaches to the building or if it's the owner ( in which case there is no point as it would be seen as a transfer of debt and ve included for stamp duty purposes) but if it's the building that is due the payment then surely it will just be a repair and thus free from stamp duty. I should state that the owner has confirmed that they will pay it but as the workhasnt yet been done can't pay for some time.
Thanks
0
Comments
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I haven't read it, but try this for a kickoff - Chapter 7 - What happens when ownership changes.....
You could also refer to the local council's website; for instance https://www.edinburgh.gov.uk - substitute your town or city for Edinburgh, and you could also speak to any advice line at the local building control dept at the council.0 -
The guidance PDF from the Edinburgh website says .....
"When recovering the cost of works, the Council will hold the owner in possession of the property at the date the bill is issued as liable
including owners under the right to buy scheme. This principle has been
established by the courts because it can take a considerable time after the service of the original Notice to complete the work. Individual properties may have new owners by the time the Statutory Notice
work has been completed and charged out.
NB: Your solicitor, when dealing with the purchase of your property, should have checked and made you aware of any outstanding
Statutory Notices. If you are selling property it is usual to reach an agreement to pay, or for a retention to be held against future bills, if a
Notice is outstanding. If you are at all concerned you should contact your solicitor for advice."0 -
Thanks Googler - I searched for that info on the edinburgh page but couldn't find it. Where would I be without you?!
Looks like it might be a way of getting the house below stamp treshold but allowing the sellers to keep more money.
Wish me luck!! xx0 -
Personally, I would avoid anything with a statutory notice underway like the plague given what has been happening recently.
Are the repairs still going ahead? As far as I am aware, all statutory notices have been put on hold (except for emergency repairs) while they investigate the corruption.0 -
I hadn't realised the OP was actually in Edinburgh, but yes - amid allegations of corruption, something like 40% of the statutory repair dept at the council are currently under suspension.0
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Do not take responsibility for the stat noice, it can change from 8k to 28k overnight, mine did.
I sold a flat in Newton st around 4 years ago, at the time of sale the stat notice was estimated at 5k per flat, for roof work, this was held in retension from the sale. We got the bill through just last year and were liable for 21k instead of the 5. The roof work turned into replacing the stone work too. Edinburgh city council invented work and the costs just spiralled out of control.
There are criminal investigations on going just now with all these stat notices, the council get 17.5% fees for the cost of the work so the bigger the bill the bigger the commision.
The investigations centre around a couple of companies who happened to win all the tenders.0
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