Mortgage deposit,stamp duty/ fees

MRPEEVED

Feel like I'm living on this site at the moment!

Obviously, I will discuss these matters with my solicitor on Friday when I see her but was just looking for some advise to tie me over.

* Our stamp duty is going to be £500. Our purchase is £150000. However, on our list of fees it
states 'may be lower if this is the only property you own at the time of completion'. Can't find
anything online that confirms this.

* We have had to accept a lower offer on our sale. £3000 lower. We plan to pay this from our
own funds. How will that work? Would it mean paying that money to the solicitor? Our sale
price covers the remaining mortgage and deposit with some left, so it will mainly be for the
fees.

Thank you

Katapolt

In terms of the stamp duty, visit HMRC website, it has a handy calculator for this!

Basically that £500 that youer paying is the lower bracket. If you were to be purchasing this property in addition to your current property, it would be more than the £500.

hope this helps.

JoJo1978

Your solicitor will provide you with a draft completion statement as you approach exchange of contracts. All the fees will be set out in that including stamp duty. You pay your solicitor any outstanding balance that your sale doesn't cover before exchange. They dish it out to all the relevant parties on completion

00ec25

MRPEEVED wrote: »

* Our stamp duty is going to be £500. Our purchase is £150000. However, on our list of fees it states 'may be lower if this is the only property you own at the time of completion'. Can't find anything online that confirms this.

that sounds a generic comment on a template letter designed to cover many scenarios.

it is irrelevant in your context

"lower" SDLT would only apply if, by the point of completion, you had by then changed from owning 2 properties to owning only 1, whereas when the figure was first put on the letter is was a higher amount on the assumption you were purchasing an additional property which would be subject to the higher rate

MRPEEVED

Thank you all. Big help

saajan_12

MRPEEVED wrote: »

Feel like I'm living on this site at the moment!

Obviously, I will discuss these matters with my solicitor on Friday when I see her but was just looking for some advise to tie me over.

* Our stamp duty is going to be £500. Our purchase is £150000. However, on our list of fees it
states 'may be lower if this is the only property you own at the time of completion'. Can't find
anything online that confirms this.
£500 is the standard rate Stamp duty on a £150k house (0% on first 125k, 2% on the excess 25k). The may be lower line looks like a generic comment which would only apply if they had given you the higher rate number for people owning multiple properties, which they havent. Your Stamp duty shoudl be £500.

* We have had to accept a lower offer on our sale. £3000 lower. - lower than what.. your advertised price?
that's irrelevant now. We plan to pay this from our
own funds. How will that work? Would it mean paying that money to the solicitor? Our sale
price covers the remaining mortgage and deposit with some left, so it will mainly be for the
fees.
On completion, your solicitor receives sale proceeds & money from your new mortgage lender. They pay off off the old mortgage, pay your vendor the purchase price (less any exchange deposit already paid) and pays any fees. If there is a shortfall then they'll request this from you ahead of completion in the form of a 'completion statement'.

Thank you

In practice, if sale proceeds covers the current mortgage, deposit (ie non mortgage funds) and all fees, then there shouldn't be anything left to pay solicitor and you'll be given the balance back after completion. If there's a shortfall, you'll have to pay this to the solicitor ahead of time.

MRPEEVED

saajan_12
Thank you. Just to clarify, our home was originally on the market at £19000. This eventually got reduced to £110000. It was very overpriced but we went with the estate agents recommendation. Really regret that actually because we could have sold earlier.
We accepted an offer of £105000. We have just had to renegotiate down to £102000 due to survey issues that cropped up. That is where the £3000 is missing and we budgeted that for our purchase. As I said though we can scape the loss up.