Money, Money, Money

lovehols

Hi

We are still aiming to complete on 22/03 all being well.

I just have a quick question so we can organise finances etc as we each have a large chunk of money in our personal bank accounts to contribute towards stamp duty, deposit etc and I'm guessing for ease it would be better for all money to be in one account only? So I'd guess either I transfer my money to my wife's account or vice versa?

Exactly what money is needed when?

- So upon exchange what money do we pay and to whom?
- Completion

And exactly when is stamp duty paid. I read somewhere you have 30 days to pay this which would be great if we didn't have to pay it immediately!

Thank you!

Lokolo

Upon exchange you will need to have transferred most money to solicitor to cover deposit, stamp duty and any other services costs (searches etc.).

You solicitor will likely be paying for your stamp duty and therefore would want the money upfront.

You will need buildings insurance as minimum from exchange.

lovehols

Lokolo wrote: »

Upon exchange you will need to have transferred most money to solicitor to cover deposit, stamp duty and any other services costs (searches etc.).

You solicitor will likely be paying for your stamp duty and therefore would want the money upfront.

You will need buildings insurance as minimum from exchange.

Thank you.

This may be a strange question but if legally we get 30 days to pay stamp duty, is there any reason why we have to pay this to the solicitor immediately. I'd rather do it myself (we have a hefty stamp duty bill as we will own two properties as mine hasn't sold yet, had an offer but it's taking a while as the lady has had her sale fall through) and my parents are lending us the additional stamp duty money we are having to pay for owning more than one property. The additional time will mean a few thousand pound less we have to borrow from my parents as it's two more paydays!

Lokolo

Not 100% sure but as you are getting a mortgage (you are aren't you?) the solicitor is acting on behalf of you and the lender. The lender will require the solicitor carry out the stamp duty payment to protect both your and the lenders responsibilities.

http://forums.moneysavingexpert.com/showpost.php?p=10921923&postcount=4 wrote:

If you are getting a mortgage it is the solicitor's responsibility to make sure he has enough money to pay the SDLT (new name for stamp duty) and Land Registry Fees before he uses the mortgage advance money to complete the purchase. The lender expects its mortgage to be registered and that can't happen unless the SDLT and LR Fees have been paid. If a cheque bounces then the solicitor is stuck with finding the money for these and claiming it back (if he can) from the client. So I think you will find that the solicitor will invariably want any payment cleared before completion.

Rambosmum

You'll likely need to provide three months of bank statements from which ever account the money is in (or has been in in those 3 months) so it makes not difference where it is currently so long as you transfer it to the solicitor.

With regards to the stamp duty, speak to your solicitor, they may be willing to let you pay it, but often aren't as they don't want to incur any costs from not discharging their duty.

Pixie5740

lovehols wrote: »

Thank you.

This may be a strange question but if legally we get 30 days to pay stamp duty, is there any reason why we have to pay this to the solicitor immediately. I'd rather do it myself (we have a hefty stamp duty bill as we will own two properties as mine hasn't sold yet, had an offer but it's taking a while as the lady has had her sale fall through) and my parents are lending us the additional stamp duty money we are having to pay for owning more than one property. The additional time will mean a few thousand pound less we have to borrow from my parents as it's two more paydays!

If you require a mortgage then you must pay the SDLT money to your solicitor before completion. That's not a rule set out by HMRC but the Council of Mortgage Lenders which your solicitor must comply with as I assume that your solicitor is also representing the mortgage lender in this transaction.

Pixie5740

As for your other question it makes no difference what accounts your money is in.

lovehols

Rambosmum wrote: »

You'll likely need to provide three months of bank statements from which ever account the money is in (or has been in in those 3 months) so it makes not difference where it is currently so long as you transfer it to the solicitor.

With regards to the stamp duty, speak to your solicitor, they may be willing to let you pay it, but often aren't as they don't want to incur any costs from not discharging their duty.

Ah I see. I'll check with the solicitor and mortgage company. Solicitors have already had our bank statements a month or so ago and didn't raise any issues.

Seems like as we have a mortgage we will have to pay it anyway.