New purchase price or allowance

mummy2014

Hi

We are purchasing our first home and ther is some work that needs doing on the house the seller has told us to obtain quotes and they will knock it off the purchase price.
Our solicitor has just asked me if they will be making a new purchase price or if it will come off the purchase price as an allowance?
But what does this mean sorry I am new to this.

Many thanks

Kirsty

SmashedAvacado

if you have a mortgage offer then changing the price is a nightmare as you may need a new mortgage offer even if the price is lower. So an allowance will give you the commercial benefit without this step.

Yellow_mango

I’d expect your solicitor can advise on what the “usual” or “right” way of dealing with this kind of adjustment is.

However, purely as a guess, it may be that treating it as a new lower purchase price may reduce the amount of stamp duty payable (SD is based on the purchase price) whereas deducting an allowance may not.

Your solicitor should be able to confirm either way. I’m not really sure why they’re expecting you to make a decision like this without providing any advice or recommendation.

davidmcn

mummy2014 wrote: »

But what does this mean sorry I am new to this.

If you don't understand something your solicitor tells or asks you, you ask them to explain. That's what you're paying them for!