Problems with stamp duty thresholds.

kc1952

House is on the market at 549K. Been rented to a footballer for last two years and is in a mess inside. Needs all new laminate & carpets and full redecoration new kitchen and new garage doors. Vendor has told agent he will drop price by £25k as it is or next week it's being refurbed. I've offered £500k. I'm renting and can complete in four weeks. He's said he definitely wants £525k but will refund £6k on completion being the difference between the duty on £500k @ 3% and his price of £525k @ 4%.

Hence at £525k he nets £519k less agents fees of 0.75%. Cost to me £540K

I want to go back with £500k plus £10k for carpets and some odd bits of furniture remaining, plus I pay his agents fees. He still nets the same (approx)but it only costs me £514,400 plus 3% stamp duty which totals £529,400, saving £10,600.
QUESTION - DOES ANYONE THINK THE LEGAL TEAMS WILL ALLOW THIS assumimg the vendor accepts it. All thoughts and considerations gladly received.

Doozergirl

I think they would. You need to jusity the £10k cost for F&F, which outside London, you might manage.

I suggest you find out for sure how much he's paying the EA before you offer to pay! I'd be very surprised if it were .75%

In rented and able to complete in four weeks is an absolute Godsend in that price bracket.

kc1952

Thanks doozergirl. I'm going to send my conveyancer an e-mail and see what she has to say. The agents fee of 0.75% is correct. It's a newish agent with two offices called grapevine.(outside portsmouth & fareham). They are on all the important internet sites like rightmove etc, but the offer of 0.75% + vat did end on 31/3/07.

Frankly I'm surprised my offer was turned down and so was the agent- I thought I had it in the bag!! with such a strong position. Trouble is I'm also in a weak position because I really like that house and its better than many in this price range. It's a really odd price range with a lot of overpriced cr*p. This IS a proper house, albeit very untidy.

Doozergirl

Just keep persisting and don't go up too far; grind him down and you'll get it!

kc1952

Has anyone else out there actually tried this manouvre whether it be above £125k, 250k or the £500k. Please tell your outcome if you suceeded (or failed).