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Stamp duty was one of our incentives from the developer...
giggl3fac3
Posts: 7 Forumite
We are completing on 30/11/17. One of our incentives from the developer was for them to pay our stamp duty. Where do we stand with this? Are we entitled to the stamp duty they would have had to pay to the government?
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Probably not.
Expect them to contact you to confirm they will not be paying you something they were helping you to avoid.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.0 -
Doubtful but no harm in asking I guess. From their perspective they just offered to pay a tax that doesn't apply now0
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Well, you are no worse off. A pleasant change from my experience of the personal impact from over 40 years of assessing budgets...0
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The issue is that instead of using the incentive to pay the stamp duty we could have used this incentive on our white goods, upgrades, flooring, etc. and paid the stamp duty ourselves. At the time it seemed like a good idea to use the incentive to pay the stamp duty...0
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Have you exchanged? What does your contract say about it? If it's, say, "a discount of £x" then that's what you'll still get.giggl3fac3 wrote: »We are completing on 30/11/17. One of our incentives from the developer was for them to pay our stamp duty. Where do we stand with this? Are we entitled to the stamp duty they would have had to pay to the government?0 -
They will pay SDLT at the prevailing rate for first time (however that is defined) and others."enough is a feast"...old Buddist proverb0
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They could argue they are still paying your stamp duty?I am a Mortgage AdviserYou 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.0
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As dropping stamp duty is intended to help buyers rather than sellers I would ask for it or to change to one of the other incentives.0
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Remember that the intention of the rules is that this is a permanent thing for FTBs and not just described as being temporary. And it's valid for houses up to £500k.
So, say you tomorrow complete on a house costing £300k, you pay just that 300k not 305k inc stamp, because stamp is now £0 at that level, and you get the same house. Fair enough, the developer is no longer paying your stamp which was what was allowing you to get it at the bargain price of "only" £300k.
But really, pre budget, £300k was all a FTB like you could afford anyway, so if you had tried to turn around and offer your place for sale to an equally financed FTB in six months time, they couldn't afford to buy it from you at 300k anyway, only at £295k because of the stamp duty which is a real cost anyone without developer bungs would have to come up with.
Now when you look to sell the house in the future, the offers you should be able to secure from the First Time Buyers will be up to £5k higher. The chancellor's deal has helped them afford it. Whether your eventual selling price is £150k or £550k those FTBs now have now buying power that's up to £5k better when they come and make you an offer.0
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