Vendor wants 'help with moving' costs

JenM_2

Hi,

We are not first time buyers - our sale has nearly completed.

We have put an offer in at the stamp duty threshold £250k. Property is on at £270k.

Vendor have said they were hoping for offers above £250k but now that it has been a couple of weeks and none are forthcoming they are willing to accept at £250k but wondered if we'd be willing to offer 'help with moving costs'.

This would not be written into the contract as part of the purchase price so I assume wouldn't flag to the mortgage company but is this legal?

The vendor's EA has said the money would be transferred to them and not transfered to the vendor until completion so we shouldn't lose the funds.

Thoughts please? I can appreciate the vendors needing every penny towards their costs - certainly we could only accept £3k under our asking price in order to have enough to cover deposit etc...

Mojisola

I wouldn't do it. Either they sell at the price you've offered or they don't. If the amount they want in cash is dependent on the house sale, then it's part of the cost of the house which isn't being declared.

hazyjo

Just say no. They're trying their luck to get a bit more cash. Your mortgage provider probably won't allow it, and your solicitor will probably advise against it. It will have to be declared.

You might as well take out a bloomin' loan for them! No different.

Could understand it maybe if people were fighting over it, but you're effectively bidding against yourself. They're lucky really to be getting £250k.

I would most definitely dig my heels in. Don't listen to the EA.

Jx

Dan-Dan

OP , they are just trying their luck , dont play ball

JenM_2

Thanks guys!

We keep getting our offers turned down because we are part of a chain and are competing against First Time buyers or cash buyers.

There are several other offers on the table but ours is the highest.

We cannot afford the extra Stamp duty to go over the threshold so cannot increase our offer (though the bank would happily lend us more money at 90% ltv).

So is this another incentive wrapped up at something else and therefore not permitted by mortgage companies?

shortchanged_2

Yes it's just another con trick to get over the stamp duty threshold.

The vendor should have considered moving costs before they decided to sell.

As others have stated it will probably get picked up and rejected by your solicitor (if they are any good!)

Put it this way, any other potential buyers are going to be in the same boat and anybody sensible would completely reject this proposal.

martinsurrey

shortchanged wrote: »

Yes it's just another con trick to get over the stamp duty threshold.

The vendor should have considered moving costs before they decided to sell.

As others have stated it will probably get picked up and rejected by your solicitor (if they are any good!)

Put it this way, any other potential buyers are going to be in the same boat and anybody sensible would completely reject this proposal.

I'll be stronger than that.

If you pay £250,000 for the house, and give them even just £5 through the estate agent, you are liable for 3% stamp duty.

If you don’t tell your solicitor and submit a SDLT return at 1% of £250,000 you are committing fraud.

If you tell your solicitor he will either 1) make you pay 3% 2) refuse to act for you.

If you do submit a fraudulent SDLT form, and are caught, you will be liable for the tax, for interest, and a penalty, and it would be a stiff one as it is intentional and deliberate fraud.

DONT DO IT.

WD1234

I don't think this is that unusual, surely it's the same as agreeing on paying for some fixtures and fittings. I have a friend who paid for some curtains and carpet separate to the sale of the house. I don't think that's illegal or should affect the house purchase price.

Maybe you should agree something similar if you really want the house.

DRP

WD1234 wrote: »

I don't think this is that unusual, surely it's the same as agreeing on paying for some fixtures and fittings. I have a friend who paid for some curtains and carpet separate to the sale of the house. I don't think that's illegal or should affect the house purchase price.

Maybe you should agree something similar if you really want the house.

For obvious reasons, it is totally different to paying for fix&fit. It is a totally transparent ruse.

All the risk lies with the buyer, and none with the seller - I would stay well away from that kind of deal.

Thrugelmir

WD1234 wrote: »

I don't think this is that unusual, surely it's the same as agreeing on paying for some fixtures and fittings. I have a friend who paid for some curtains and carpet separate to the sale of the house. I don't think that's illegal or should affect the house purchase price.

Most likely overpaid in terms of items real value. Which is where the issue arises.

Fitted carpets or curtains are rarely any use to the vendor due to differing size requirements in the new property.

JenM_2

So if we agreed to pay for fixtures and fittings it's legal but what has been proposed is illegal?

I had already theorized that this was defrauding HMRC with regards to stamp duty so thank you for the confirmation