Stamp Duty troubles

Mortgage_Mark_2

HouseBuyer77 wrote: »

I believe that following the recent changes the purchaser now has to pay the SDLT directly (or so my solicitor says for the purchase I'm currently engaged in).

So I guess you could arrange a side-deal with the vendor to just give you the money and then you pay. Though that'd be extremely dodgy, and I can see no reason why a vendor would want to do it.

Solicitor pays SDLT. Buyers paying their own SDLT would be an administrative nightmare for HMRC...

somethingcorporate

Pixie5740 wrote: »

I think what the OP is suggesting is that say the vendor is asking for £640k, they have offered £620k (which has been accepted). Except the OP doesn't have £21,000 for SDLT so instead the OP will pay the vendor £640k and get a 90% LTV mortgage based on a £640k purchase price (assuming the survey valuation agrees with this). The vendor would then get the £620k offered and pay the £20k SDLT to HMRC.

It's just a way of trying to add the SDLT to the mortgage which I'm pretty confident you can't do.

I believe this is correct the buyer has to pay SDLT.

OP, why did you make an offer on a property worth £600k+ without having the money to pay the fees? Can you not just take it out of your current equity and mortgage for a bit more?

Jhoney_2

natalienashville wrote: »

Dear all

we have put an offer on a house, just under asking price, infact roughly stamp duty value under - we have our 10% and our in principle, but it will take us another 18m to save the stamp duty (in which time, no doubt house prices will rise another 10-15% - outer London)
Can we ask the vendor to pay stamp duty? His asking price is our offer PLUS the stamp duty - its all hypothetical as he may well reject our offer anyway, but its the only way I see of being able to get a foot on the ladder!

Thank you

There isn't any equity to use.

somethingcorporate

Jhoney wrote: »

There isn't any equity to use.

Good point, perhaps they should continue saving or buy a cheaper house then as they cannot afford it...

They don't have to jump on the ladder right near the top!

pinkpiglit

As others have said, I think you need to lower your sights a bit and buy something cheaper. Ideally you need some savings behind you in case something unexpected crops up - such as the boiler blowing up a week after you moved in. If you can't afford the stamp duty, then I'm guessing your savings are non-existent and you could find yourself in a whole heap of trouble.

DRP

natalienashville wrote: »

Dear all

we have put an offer on a house, just under asking price, infact roughly stamp duty value under - we have our 10% and our in principle, but it will take us another 18m to save the stamp duty (in which time, no doubt house prices will rise another 10-15% - outer London)
Can we ask the vendor to pay stamp duty? His asking price is our offer PLUS the stamp duty - its all hypothetical as he may well reject our offer anyway, but its the only way I see of being able to get a foot on the ladder!

Thank you

A foot on the ladder at £620 grand!! :rotfl::rotfl:

OP you are very lucky to be a FTB who can spend more than half a million quid on a house.

I would advise looking at slightly more affordable places that fit your budget or save for a bit longer. It shouldn't take long to save up the SDLT at your salary.

JimmyTheWig

There are some 95% mortgages available, are there not, even without help to buy?

jbainbridge

It's never going to happen ... you should have accounted for this before you offered.

Hoploz

You would be liable for additional stamp duty if the purchase price is higher, eg on 640k instead of 610k.

If I were the vendor I would not be happy that you offered then decided you couldn't afford it and started dithering around.

Also, if you are changing the purchase price your mortgage valuation would have to come in at the higher level for it to work.

Hoploz

.... Getting a loan at the same time as a mortgage will jeopardise your mortgage offer! This is because the loan repayments will come out of the same income as your proposed mortgage payments. Meaning your affordability is lower due to the additional outgoings.