Who should inform you about stamp duty?

ACG

When we get solicitors quotes for our customers, it includes stamp duty costs. I would argue that when you got a quote from the solicitors it should tell you about stamp duty on there as the solicitors are the ones who take the money for it and pay HMRC on your behalf. I suspect it will actually make some mention of it on there but you have overlooked it.

We only really cover off stamp duty with customers if it is a second property purchase or a BTL as it would usually be chargeable at the higher rate.

The mortgage broker (or financial advisor) is there to arrange the mortgage and ensure you get accepted and it is affordable on a monthly basis. They are there to offer support and guidance along the way, but we are actually not allowed to advise on stamp duty or any other taxes, we can only make you aware of it.

I am not sure the broker has done anything wrong, there is an argument they could have done more - but there is an argument you can always do more.

I can see your frustration, but I think this is one of those things you may need to suck up as it is not really anyones fault. It is one of those things where it is not a job assigned to anyone. Not that it helps, but you do raise a good point and I will think about it when we are working with customers who are liable for stamp duty.

RonoB

How much is the property? Will you not be exempt from land tax if a first time buyer?

00ec25

Hannahkah19 wrote: »

We didn't choose the FA. We were told we had to use them to have our affordability to purchase the property qualified first. The mortgage application did not have to go through them.

the bottom line is are obviously very innocent about how the world operates and apparently have done little to educate yourself on what is involved in property buying.

seeking to blame someone else for your own lack of research is unfortunately an all to common reaction from many people these days.

when you started work did you boss explain you would have to pay income tax or did you already know that? The situation is no different with SDLT, you are expected to understand what it takes to buy a property.

Nothing you have said shows you paid the FA to nurse maid you like babies through the whole process. You "paid" the FA to find a mortgage. That required them to assess your affordability for repaying the mortgage, not you ability to fund every aspect of the property purchase.

you should have borrowed a book on property buying and read it if your parents / family were not there to advise you on the common basics ...

babyblade41

Oh dear, again buying one of the most life changing things ever and not knowing diddly squat.

Firstly you should use your own FA/MA not one assigned to you, then you should instruct your own solicitor who will give you a breakdown of their costs including your SDLT ...but before you do any of this you should learn the process of buying a property

I can't believe it is something you hadn't budgeted for and done the calculations before hand...madness

Hannahkah19

Yes we are first time buyers which is why we thought we were exempt from the stamp duty. The value is £290000 and everything I have read says that we should be exempt from it.

Hannahkah19

Thanks for the patronising responses but actually only helpful ones are needed. I am not uneducated and we did not go into this process with out researching it. Everything we have read has said that as first time buyers and the cost of our house we should be exempt from stamp duty which is why we were completely taken by surprise when it was quoted in our solicitors fees. I am extremely organised and we have budgeted for this purchase down to the penny. I can’t educate myself on something that is being contradicted by everything I read which is why you then take the advise of someone who is paid to know these things like a financial advisor. I didn’t use them to get me a mortgage, I’m more than capable of doing that myself. I paid them to make sure I knew exactly what all the costs were associated with buying the property. And secondly, we were told unless we used that FA to pre-qualify we couldn’t reserve the plot. I don’t see how it’s our solicitors job to inform us of extra taxes weeks into the process. Especially when I asked both the FA and sales person to go through all costs and the process and timelines of the purchase in detail.

Thrugelmir

Hannahkah19 wrote: »

Yes we are first time buyers which is why we thought we were exempt from the stamp duty. The value is £290000 and everything I have read says that we should be exempt from it.

Have you raised this with your solicitor? Are they aware that you are FTB's.

Hannahkah19

Yes we have and they’ve told us we aren’t exempt. They also believe we should have been told about this by the FA

allconnected

And why did the solicitor say you didn’t qualify for first time buyers relief?

Presumably they explained why as first time buyers you weren’t entitled to this?

All connected

HampshireH

Unless one of you isnt a first time buyer i cannot understand why your solicitor would quote these costs and still insist when challenged.

Mine did the same but when we reminded them they quickly removed it no arguements.

Go back to them and ask them why