We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
House Purchase: Stamp duty threshold
Comments
-
ConfusedofYorkshire wrote: »Is that legal?
Don't see why it wouldn't be... I don't think HMRC cares who pays stamp duty as long as it is paid. Neither the Estate Agent nor the solicitor have flagged up any concerns.
Effectively it's the same as if the buyer had made the same offer minus stamp duty, except:- It seems to be psychologically quite effective in getting the buyer to forget about stamp duty thresholds when deciding what to offer
- The recorded sale price will be higher
- The EA's fee will be slightly higher if it is based on the sale price
Let's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0 -
Most lenders will take away the value of the vendor stamp duty being paid away from the mortgage. Lenders do not like cash incentives.0
-
ConfusedofYorkshire wrote: »Is that legal?
I would question the legality of it. Stamp Duty liability rests with the buyer. If the seller doesn't pay it then it will still be the buyer who is liable. It is like someone paying your income tax for you. I know some developers offer to pay the stamp duty on properties, but they don't send a cheque to HMRC, they just discount the property by the stamp duty amount. You still send payment to HMRC based on the new, albeit now slightly lower, purchase price. Anyway this isn't what the OP was really asking.
There were rumours towards the end of last year that stamp duty under would be scrapped for property under £500,000 but this has not yet materialised. This would obviously help the OP if it did happen.
If it is the house you want and you can afford it then go for it. If however, you are motivated more by what could happen in a couple of years and the trouble you may have selling it if it is just into the hight stamp duty threshold then you will need to think a bit harder. Especially if you really are stretching yourself financially. Should anything happen to the market you could be in trouble, especially as the discount you've been given on the asking price isn't that substantial (£6,000).0 -
The budget is next week, fingers crossed for good news on stamp duty:)0
-
ConfusedofYorkshire wrote: »The budget is next week, fingers crossed for good news on stamp duty:)
That's a really good point, unlikely though!0 -
hukd.deals wrote: »It is not that we'll be moving aborad ro settle. We wil def be coming back. The point I made was to be in the market. Inflation will just eat what deposit we currently have.
you said in your first post.
There is a good possibility that we may have to sell this house and move to another country because of my husband job in 2-3 years.
if you do that you will be out of the market then so that makes no sense if you are scared of being out now.
you need to get your plans and thoughts straight, current thinking based on your posts is sloppy.0 -
We bought in 2006 for £250,000 sold in 2011's crap market for £270,000 if you have a good, well presented property you can exceed the stamp duty threshold.Earn £2015 in 2015: £13:33/20150
-
So you describe what you have an appear to feel it is value for money, IMO you are better to buy this and let the value float up over £250k in the next 2-3 years than buy a three bed semi for £230k and be at that threshold in 2-3 years and find it difficult to sell for any more.
Just my opinion,0 -
hukd.deals wrote: »True, but we do want to be in the market as well. Price rise of 15-20% will close any chance of owning a home for ever. And his job will keep us on the go for a long long time, then we wont be buying a house ever.
There is a good chance of moving but not definite and as someone suggested, renting it out is also an option.
Surely if you are expecting 15-20% rises, your house will be worth £280K plus. That's so far away from the £250K limit that it's not an issue to worry about.0 -
So you describe what you have an appear to feel it is value for money, IMO you are better to buy this and let the value float up over £250k in the next 2-3 years than buy a three bed semi for £230k and be at that threshold in 2-3 years and find it difficult to sell for any more.
Just my opinion,
Good suggestion, thanks!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards