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Can I pay stamp duty late?

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Comments

  • jaxkesa
    jaxkesa Posts: 359 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    On a related note, does anyone know how this works when the builder is paying stamp duty? My mortgage adviser says the builder will pay stamp duty in cash but would that be to the solicitor or do I have to pay it first and then the builder reimburses me?
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    jaxkesa wrote: »
    On a related note, does anyone know how this works when the builder is paying stamp duty? My mortgage adviser says the builder will pay stamp duty in cash but would that be to the solicitor or do I have to pay it first and then the builder reimburses me?

    It'll almost certainly just be a discount from the price.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    davidmcn wrote: »
    I'm not entirely sure why lenders insist that the solicitors are holding the SDLT funds before completion, because I'm not aware of any circumstances in which the lender would end up having to pay - it's a personal liability by the purchaser. All that must happen in order to allow registration is that the SDLT return is submitted.

    However, the standard CML Handbook instruction is that the funds must be with the solicitor, so there's no point trying to argue with the lender or solicitor about it.
    Is it not the case that the property cannot be registered with the Land Tegistry till the Stanp Duty is paid?

    If so, if the buyer fails to pay, the property won't be registered and so the mortgage lender cannot register their Charge over the property?
  • jaxkesa
    jaxkesa Posts: 359 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    davidmcn wrote: »
    It'll almost certainly just be a discount from the price.

    It's not a discount from the house price if that's what you mean. The mortgage offer I have is for the price of the house and it's paid in cash. I'm just not sure who to.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    G_M wrote: »
    Is it not the case that the property cannot be registered with the Land Tegistry till the Stanp Duty is paid?

    No, it's only the submission of the SDLT return which is required. Whether any SDLT due is thereafter paid isn't something the Land Registry knows or cares about.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    jaxkesa wrote: »
    It's not a discount from the house price if that's what you mean. The mortgage offer I have is for the price of the house and it's paid in cash. I'm just not sure who to.

    The price in the mortgage offer isn't going to change, but it's simplest for these sorts of incentives to be deducted on the builders' completion statement. Would be unusual for the builders to have to find funds to pay your SDLT before they've received your completion monies.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    davidmcn wrote: »
    No, it's only the submission of the SDLT return which is required. Whether any SDLT due is thereafter paid isn't something the Land Registry knows or cares about.
    In that case as you say, there's no rational reason for lenders to be involved in the SDLT payment (or non-payment).
  • TBeckett100
    TBeckett100 Posts: 4,732 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Cashback Cashier
    If you are unable to pay the mandatory fees on time, are you actually in a financial position to be buying?
  • kingstreet
    kingstreet Posts: 39,375 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    jaxkesa wrote: »
    It's not a discount from the house price if that's what you mean. The mortgage offer I have is for the price of the house and it's paid in cash. I'm just not sure who to.
    As david said, the builder will simply accept less money from your solicitor for the purchase, leaving the funds behind to pay the stamp duty.
    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.
  • Richard_Webster
    Richard_Webster Posts: 7,646 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Land Registry won't register transfer of property to buyer and its mortgage to lender without certificate fromHMRC that SDLT form has been completed. So if no rergistration then lender has no security.

    If SDLT nopt paid by client then lenders expect the solicitor to find the money themselves - that's why they insist on having the money upfront.
    RICHARD WEBSTER

    As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.
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