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Allowance ( cash) to buyer
Belindav123
Posts: 63 Forumite
Hello
Our house needs some enhancements ( escape window on 1st floor and automist system in the kitchen) in order to get building regs approval for an open plan kitchen.
We have agreed the buyers will do the project themselves, and we will fund it.
Is it ok for us to give the buyer a cheque on completion.
thank you
Belinda
Our house needs some enhancements ( escape window on 1st floor and automist system in the kitchen) in order to get building regs approval for an open plan kitchen.
We have agreed the buyers will do the project themselves, and we will fund it.
Is it ok for us to give the buyer a cheque on completion.
thank you
Belinda
0
Comments
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can you not just reduce the price paid by the buyer, or am I missing something?0
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That is what we suggested but as all the contracts are drawn up and we were suppose to exchange today, they don't want to delay things by going this route.0
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They would need to declare it to their mortgage lender as a vendor cash incentive. The lender would deduct it from the valuation, ergo it becomes a price reduction.
Different route, same result.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 -
No of course it isn't ok.
What has your solicitor said about this?0 -
Buyers wants cheque, but our sols have said no it must be deducted from sales price. It is only £1k, and the price is £290k so no where near Stamp Duty threshold.0
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Belindav123 wrote: »That is what we suggested but as all the contracts are drawn up and we were suppose to exchange today, they don't want to delay things by going this route.
You are changing the contract...0 -
Needs to be written into the contract, either as a special term (the cheque) or as an adjustment to purchase price.
As a side note, SDLT is payable on all related transactions so would include this.0 -
Belindav123 wrote: »Buyers wants cheque, but our sols have said no it must be deducted from sales price. It is only £1k, and the price is £290k so no where near Stamp Duty threshold.
So your solicitor (who presumably knows what they are talking about) has told you what has to happen.
Generally speaking, i would be more inclined to trust a solicitor than a third party who is prepared to defraud their mortgage company.
Given this is a reduction in price there is no sdlt advantage in it not being treated as a price reduction.0 -
pay a solicitor
hundreds of pounds
then ignore their advice
madness0 -
instruct a builder prior to completion to do the work and you are paying the bill then complete - the buyers - although paying less overall may not have that 1000 spare to have the work done0
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