Buying below valuation- stamp duty??

Lucky7s

Hi,

I’m wondering if someone can advise...?

We’re looking at buying the house we currently rant off my father in law. The house is valued at £160k but we are able to buy it at £120k. We have applied for a mortgage at a 75% LTV, using the equity.

However, my question is when instructing solicitors do we instruct them on the basis of £120k or £160k? Obviously the difference would define whether we pay stamp duty or not.

Any help is appreciated.

Many thanks.

davidmcn

Stamp duty is on the consideration paid, not the market value, so should be £120k.

SDLT_Geek

There is an article on concessionary purchases and SDLT here: https://www.blakemorgan.co.uk/news-events/blog/bank-mum-and-dad-concessionary-purchases/

SDLT_Geek

There is a thread here (with a happy ending) on the same topic. It is so important to get terminology right here or the matter could go off on a tangent. https://forums.moneysavingexpert.com/discussion/5946894/concessionary-purchase-stamp-duty