First time selling and buying - daft question re: SDLT

macarena123

Hi there

Apologies in advance as I know this is basic but hoping you can help :-)

Currently own and considering moving. I have a mortgage. I know that you can (normally) pass the deposit up the chain but have a question- Do I need to give the solicitor stamp duty before completion day or can they take it out of completion funds?

Thanks

Pixie5740

macarena123 wrote: »

Hi there

Apologies in advance as I know this is basic but hoping you can help :-)

Currently own and considering moving. I have a mortgage. I know that you can (normally) pass the deposit up the chain but have a question- Do I need to give the solicitor stamp duty before completion day or can they take it out of completion funds?

Thanks

If you are purchasing with a mortgage and your solicitor is also acting for the mortgage lender, the lender will insist the solicitor has the SDLT funds before releasing the mortgage funds otherwise if you don't pay the SDLT the solicitor will be held liable for the SDLT.

SDLT_Geek

The solicitor will need to hold enough money at completion to meet the SDLT as well as the balance of the purchase price of the property you are buying. You would normally expect to get a "completion statement" from the solicitor before completion showing what money they need from you after allowing for:


Money received from your sale
Less the amount to redeem the mortgage on your sale and costs of the sale (often including estate agents fees)


Deposit money (perhaps passed up the chain in whole or in part)
Balance of purchase price with any apportionments
SDLT and Land Registry fees
Other expenses of the purchase
Less the mortgage advance you are receiving for your purchase

G_M

If the solicitor knows he will have enough on Completion to cover the SDLT that's fine. eg if your sale is for more than your purchase, or your new mortgage will cover any difference and leave enough left over.


But he will calculate tat in the Completion Statement he sends you.



If he calculates that on Completion he does not have enough for the SDLT, he'll expect you to send that money in advance (and add it to the Completion Statement)

macarena123

Thanks all!

The SDLT is likely to be pretty hefty (around £15-20K) so was hoping I could pay that from my sale proceeds and adjust my new mortgage accordingly.

Early days yet, but before proceeding in earnest I'll sit down and do the maths to make sure everything is covered (and a bit extra for contingency!)

Thanks again for the input - appreciate it!