Stamp duty on a help to buy property

queenie81

Hi,

I am looking at purchasing a house, through the help to buy scheme, which is £270,000 full price and £216,000 with the help to buy scheme.

Would stamp duty be calculated on the full price or the help to buy price? Ami I right in thinking it will be 7% if it is on the full price?

Thanks

chanz4

the full price, you still pay the full amount

somethingcorporate

Stamp duty is 3% on the full amount between £250k and £500k.

So 3% * £270k = £8.1k.

ethank

Ask the developer if they will pay it for you! They can only say no!

dimbo61

The developer is having a laugh if they think asking £270K is a good idea !!!
Offer no more than £250K and even then you have 1% stamp duty to pay so £2500

darkvader

dimbo61 wrote: »

The developer is having a laugh if they think asking £270K is a good idea !!!
Offer no more than £250K and even then you have 1% stamp duty to pay so £2500

We have been hunting and looking for a while now and trust me, any one using the HTB are just treated unfairly....developers and bankers dont see the scheme as a help to the first time buyer but instead free money to FTBs so why should they reduce prices or give anything.....

Most builders will not budge from asking price for HTB users....they dont care that much and wont move a lot from listed price (of course, varying from where you purchase as well as what time of the year or phase of build you purchase)...usually they offer flooring, upgrades, appliances, tiles etc etc and some will go as far as paying part or all of stamp duty but then you also have to see which mortgage lender is accepting of what incentives....just the other day, my friend was told by the ban themselves that they will not provide mortgages if the builder is paying stamp duty!!!!

DV

Thrugelmir

darkvader wrote: »

Most builders will not budge from asking price for HTB users....they dont care that much and wont move a lot from listed price

That's because the developers have to contribute to the scheme with a % of the selling price.

ethank

Thrugelmir wrote: »

That's because the developers have to contribute to the scheme with a % of the selling price.

That is true of the NewBuy scheme but not of Help to Buy. The developer does not contribute to Help to Buy Equity Loan. However, there are really strict rules about incentives.