Stamp Duty & 'Consideration' on buying for under value

ABBF08291

BlueIsTheColour wrote: »

I've just completed on a concessionary purchase, where the house was valued at £230k, my mortgage is £130k and the £100k was in essence 'gifted' to me by the owner of the property. (In my case, my father in law as I was a sitting tenant having lived there with his son who unfortunately recently passed away).

My SDLT was only £100, based on the £130k mortgage/cash the owner received. (My mortgage company have still worked on the value of £230k for the LTV)

Thanks for your input on your recent experience. Did your broker/solicitor confirm and agree on the SDLT amount? Thanks

ABBF08291

Sasahara wrote: »

If the parents gained something of value up to the £300K in addition to the £500K then it could be part of the sale price.

Parents are gaining £500k from their sale to me, less their current mortgage charge and a small second charge (secured loan). I will be taking on a £497k mortgage and receiving £303k in equity as a gift (based on a valuation of £800k)

davidmcn

ABBF08291 wrote: »

What I am trying to find out is who has the final say?

It's your tax return, so you need to be satisfied that you're giving correct information.

You also need to persuade the lender's solicitor (who also happens to be your solicitor) that the SDLT return being submitted appears to be valid and that they will be in a position to pay the relevant amount of duty at completion.

So you need to reach a consensus - if all else fails, find a different solicitor!