New stamp duty - builder incentive

Lorablue

Hello,

We are buying new build from Bellway and are due to exchange contracts on 8th December. One of the builder incentives we got from them was 2% paid towards stamp duty leaving 1% for us to pay.
Since it was almost a month ago the amount was calculated based on old rules. Now with all the changes the total amount of the stamp duty is going to be even less than the amount Bellway initially agreed to pay for us.

We have contacted our solicitor and he is waiting to hear from Bellway but his guess is it is likely they will amend the stamp duty allowance in accordance with the new amount.
Do you think they have right to do it? It would be a shame to loose the money!

Thank you!!

maninthestreet

You haven't exchanged contracts yet, so neither side is committed yet.

mrginge

Before the change you were paying X.
If they adjust the incentive amount due to a reduction in the sdlt charge you are still paying X.

What have you lost?

Lorablue

Ok, probably I didn't explain myself properly
When we were trying to get a mortgage for the property the bank asked for 5% more deposit we initially had which was quite tight for us. Bellway agreed to help us in this situation and give almost 6K incentives and it was decided that this amount would go against the stamp duty. With the new law the stamp duty is less and if Bellway amends the amount we will end up getting less from them while the amount of the deposit remains the same.

kingstreet

So, your argument is the builder is having to pay less, therefore you should get more for yourselves?

It's a point of view, I guess.

Builders will normally have £x/x% to play around with and if they are saving on the swings, they may be prepared to improve the roundabouts.

If they do, it will be totally discretionary. You are entitled only to what is written on your signed reservation.

amnblog

If you price is just above £250,000 there is a sizeable difference and a renegotiation might be worth your time.


If your price is just below £500,000 the difference will be minimal anyway.

Lorablue

The price is £270 K and yes, the difference is noticeable. I will try to talk to Bellway but I am afraid at this stage I don't have any bargaining power

ACG

I think I would have kept my mouth closed and hope they never noticed (unlikely but sometimes it works).

Lorablue

Unfortunately the solicitor is already in contact with them by his own initiative.

kingstreet

If the reservation reads "2% paid towards stamp duty" I think they are contractually obliged to pay that to you, even if the amount of stamp duty payable by you is actually lower.

Your solicitor feedback will be interesting.

bclark

When I bought last year we had stamp duty paid and the amount was quantified on the form and completion statement.

At the end of the day it's just a discount as they don't actually physically pay your stamp duty for you so they should detail an amount of money.