Will I lose £6k?

Mr.Generous

If I said yes you'd probably believe me.

bitsandpieces

mikeopvc wrote: »

It was first valued at £90k, next door but one is up for sale for £114,950, another a few doors down is up for £107,500, another for £119,950 (extra bed) another for £121,950 (extra bed) another for £134,950 (extra bed, conservatory and garage)

It's well worth £75k all day long

So if all is as you hope, vendor's getting an even worse deal than I thought - taking a hit on price in addition to the £6k fee. One possibility is that - for one reason or another - they're willing to accept a really really bad deal. I'd worry about the other possibilities, though.

What would you normally think if someone offered to sell you X for significantly less than it's worth, so long as you pay thousands of pounds up front?

waamo

mikeopvc wrote: »

£75k is the purchase price, I will pay 25% deposit £18,750 and will require a BTL mortgage of £56,250

I will only need to pay 3% stamp duty on £75k

I would check that with your solicitor. I've read different opinions that say you pay stamp duty on the entire fee.

franklee

mikeopvc wrote: »

It was first valued at £90k, next door but one is up for sale for £114,950, another a few doors down is up for £107,500, another for £119,950 (extra bed) another for £121,950 (extra bed) another for £134,950 (extra bed, conservatory and garage)

An EA's valuation is pie in the sky if the property didn't sell on the open market at that price which it clearly didn't. The others you list are asking prices but have they sold and for what price? What you need are sold prices. How long have they been sitting on the market? Have they been selling in a reasonable timescale?

mikeopvc wrote: »

It's well worth £75k all day long

Then pay 75K, not 75K + 6K agent fees.

Just answer me this, it all is tickety boo and it's worth the money when why not sell normally? I mean who would willingly give an agent 6K when it's not necessary?

mikeopvc

waamo wrote: »

I would check that with your solicitor. I've read different opinions that say you pay stamp duty on the entire fee.

Yes I will be checking that with my solicitor tomorrow as I am still not sure about that, I did ask the guy at the auction co exactly that question today and he said the £6k is regarded as an agent fee and only the £75k purchase price would be liable to stamp duty, I will check though.
Thanks

marksoton

mikeopvc wrote: »

Yes I will be checking that with my solicitor tomorrow as I am still not sure about that, I did ask the guy at the auction co exactly that question today and he said the £6k is regarded as an agent fee and only the £75k purchase price would be liable to stamp duty, I will check though.
Thanks

I asked my mate if the sun was shining. He said yes. It was p155ing down.

I'l say what others win't. You're an idiot.

stator

No matter what they agree or say in advance the fact remains: You are paying £6k up front before exchange of contracts. You MAY lose it.
If the house is so good that you really don't mind losing the £6k then speak to your solicitor and by all means risk it.
If you can't afford to lose the £6k and up with no house then PULL OUT.

csgohan4

Omg this thread is still open, OP your being taken for a ride.


If you don't mind donating 6k then go for it

davidmcn

mikeopvc wrote: »

I did ask the guy at the auction co exactly that question today and he said the £6k is regarded as an agent fee and only the £75k purchase price would be liable to stamp duty

But according to your OP he also told you:

Fees paid to the Auctioneer may be considered as part of the chargeable consideration for the property and be included in the calculation for stamp duty liability.

I don't know the answer for certain, but the latter seems more likely, otherwise surely everyone would offer to pay the seller's EA fees (after deducting them from the "real" price) in order to reduce their stamp duty?

System

franklee wrote: »

I suspect there is something wrong with the property that will come up on valuation/survey and then you will be left in a legal battle with the auction property as to if your get out wording applies or not. They then say well it's obvious a property of that age has giant woodworm (or whatever comes up) and so pulling out is your choice. Basically it's messy.

You keep asking why people are saying the email from the auction company is worthless. I think this bit of franklee's comment is key. After all, the email is very explicit:

If for whatever reason a 3rd party was to delay the completion process and go outside of the fixed timescales (28 days to exchange & 28 days to complete) at no fault of your own we will extend the timescales provided in order to complete your purchase of the property.

IANAL, but I think that contains enough weasel-words to let the auction company at least take a stab at not refunding your money, should you find out that the whole property is falling down and basically worthless. It's not a 3rd party delaying completion in that circumstance; it's you. Besides, they'd have your money already and it's a lot harder to get it back than to not pay it in the first place.