Stamp Duty troubles

Malmo

natalienashville wrote: »

No, perhaps I wasn't clear, the vendor wants 640, we will pay 610 - our mortgage is for up to 645 I was trying to see if there is a way of adding the stamp duty into the mortgage and paying a higher price (closer to his asking price) but then he pays the Stamp Duty - like cash back if you like

Surely the lender will only advance you the LTV of one of the following, whichever is the lower amount:

1) the agreed purchase price (£610,000) or...
2) the lender's valuation

Just because you have been offered up to £645,000 by the lender, it doesn't mean you will have that maximum amount available to you - it depends on the purchase price or valuation.

ognum

natalienashville wrote: »

WE would take the loan once the mortgage is in place, so it would not affect this

hmm, this not be as easy as you think, your solicitor will want all funds in place before completion, mortgage only gets passed to solicitor a couple of days before completion and can get pulled any time up to completion. funds for SD will need to be with solicitor at that time as well so you will need to apply for personal loan before your mortgage is with the solicitor.

pinkteapot

natalienashville wrote: »

WE would take the loan once the mortgage is in place, so it would not affect this

You'll need the cash to pay the stamp duty bill around 5 days before completion, as your solicitor will ask you to transfer it to them, and they'll pay HMRC on completion day.

The mortgage isn't "in place" until completion. If your mortgage application is approved and then you apply for a loan, they can withdraw your mortgage offer and leave you in all sorts of trouble if you've exchanged contracts.

nubbins

Apologies if I have missed something but what you are basically asking is your buyer accepts 610K you say to them can you tell everyone we are paying you 631k and can you the seller pay the stamp duty for us, a bit like a developer offering an incentive? If this is the case then I suspect you will no chance, not only will your seller probably run a mile, you then have a lenders valuation which could down value by 25-50k. For your info getting a loan before completion can mean getting a mortgage withdrawn by the lender!

pleasedelete

Have you got a mortgage agreed for that amount? Over about £500k it gets much more complicated. Surely they checked at that point that you had the stamp duty money? If you haven't actually gone through the approval process you need to do it now as at that level is isnt simple- especially on 90%.

JimmyTheWig

natalienashville wrote: »

Guess, we're gonna have to ask the bank of (his) mum & dad...

Would this need declaring on the mortgage application?
Or is it literally just a case of declaring where the deposit money is coming from?

OP, do you have money set aside for solicitor costs, etc?

pleasedelete

So to get a mortgage of that amount you have a joint pre-tax income of £250k ish assuming that you have no debt at all. Cant you just save for 4 mor months?

pleasedelete

Have you got a mortgage approved or just had conversations? Where has given you a 545K mortgage with such a low deposit on that relatively low income?

pleasedelete

I believe?

Who is lending to you?

pleasedelete

It is as you may be living in cloud cuckoo land. It is a very big mortgage to get on that income (assuming earning distribution is even). Unless you are sure that you have a firm mortgage offer for such a large amount based on that relatively low joint income (for size of mortgage) with such a low deposit then discussing stamp duty is irrelevant.

It falls way outside the basics affordability ranges set by many lenders- so is it through a broker?

It is your mortgage- you need to know these things personally and not trust anyone else. You will be liable if housing prices fall, you split up, lose your job or you cant pay the mortgage etc