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Stamp Duty Allowance Refused by lenders
monty1981_2
Posts: 7 Forumite
Hi,
My partner & I are purchasing a property for the 1st time and agreed the purchase in December on the basis that we could complete before the stamp duty holiday ended.
To cut a long story short, the sellers have delayed matters their end and we will not now complete before the stamp duty holiday for first time buyers ends.
They've now agreed to an allowance of £750 on completion which will pay half of our stamp duty but our mortgage lender (Abbey) have refused it saying that no allowances / incentives are permitted.
Does anybody have any constructive advice or ideas as to how we can accept their offer of the allowance?
Thanks
My partner & I are purchasing a property for the 1st time and agreed the purchase in December on the basis that we could complete before the stamp duty holiday ended.
To cut a long story short, the sellers have delayed matters their end and we will not now complete before the stamp duty holiday for first time buyers ends.
They've now agreed to an allowance of £750 on completion which will pay half of our stamp duty but our mortgage lender (Abbey) have refused it saying that no allowances / incentives are permitted.
Does anybody have any constructive advice or ideas as to how we can accept their offer of the allowance?
Thanks
0
Comments
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Could you renegotiate the price so that your total costs (house + stamp duty) decrease by £750 overall?You were only killing time and it'll kill you right back0
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The vendor reduces the price by the equivalent amount.
You'll have to find the cash to pay the stamp duty though. No way round that.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »The vendor reduces the price by the equivalent amount.
You'll have to find the cash to pay the stamp duty though. No way round that.
Or this! And, as a bonus you'd actually end up saving £757.50 instead of £750You were only killing time and it'll kill you right back0 -
I think the point is that because the price is being reduced - however it is dressed up by way of allowance etc - Abbey are saying they will reduce the mortgage offer pro rata so OP ends up very little better off.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Then I'm confused about what the OP is asking... I assumed that the stamp duty wouldn't really have anything to do with the mortgage lender in the first place (don't you need to pay this upfront in cash, rather than borrowing it?)You were only killing time and it'll kill you right back0
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girl_withno_name wrote: »Then I'm confused about what the OP is asking... I assumed that the stamp duty wouldn't really have anything to do with the mortgage lender in the first place (don't you need to pay this upfront in cash, rather than borrowing it?)
They were hoping to pay 0 in cash for the stamp duty.
Now they need to find and pay £1500 in cash for the stamp duty.
If the purchase price is reduced by £750, and they are borrowing say 80% mortgage then the amount of the mortgage will reduce by £600. So they'll only be better off by £150 in terms of their the amount they can reduce the deposit by, not £750 better off.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
If u can reduce the sale price by £1 to £149,999 and the property falls into a disadvantaged area, stamp duty becomes exempt..
http://www.hmrc.gov.uk/sdlt/reliefs-exemptions/disadvantaged-areas.htm0 -
If u can reduce the sale price by £1 to £149,999 and the property falls into a disadvantaged area, stamp duty becomes exempt..
Don't need to do that - in disadvantaged areas, exempt at £150,000, its at £150,001 that you pay SDLT!RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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