Payment options of stamp duty

Sam_James

Me and my wife have a offer accepted on a house £304k we have 10% deposit with borrowing of 3K from friends.
We thought we were first time buyers but my wife took out a mortgage 20years ago so we have now been hit with stamp duty £5200 bill. We are not in debt and have no overdrafts in use, and credit cards are free to put this on but will this nerve the solicitor.
Of our general buying costs is there anything we can shift in terms of time or put on cards or overdraft of the following or will the solicitor not like this....
-Solicitor fees £1500 approx
-Stamp duty £5200

Thanks in advance !
Sam

csgohan4

Solicitors don't like to be paid via credit card, you can ask, but sadly Stamp duty will need to be paid

Tom99

Would a 95% mortgage be a better option since you really only have a 7% deposit?

gary83

Is your mortgage broker/bank aware you're borrowing part of your deposit?

If after you move in you discover any little jobs that inevitably turn up will you have any money left over to deal with them?

ACG

I am not sure you can pay stamp duty on a credit card - as in I think it is physically impossible (I could be wrong).

SDLT_Geek

Sam_James wrote: »

We thought we were first time buyers but my wife took out a mortgage 20years ago so we have now been hit with stamp duty £5200 bill.

Simply being liable on a mortgage does not stop your wife from being a first time buyer. It is acquiring an interest in a property that stops her from being a first time buyer. So what happened 20 years ago? Was she just on the mortgage to guarantee payment without having any share in the property? If so then happy days! If she was an owner of a residential property then you are right, she would not qualify for first time buyers relief.

Sam_James

She moved in 50/50 into a property with a previous partner, so she was signed up as 50% of the deal and lived there for 5 years.
So the fact this is my first mortgage doesnt stand for anything?

AnotherJoe

Nope


additional text

Sam_James

It made sense to us as we were very close to 10% to reach out to friends to get there in terms of the deals we could get, my wife has a work bonus due around 5K for starters in January. But the stamp duty has cropped up and we are sweating.

Am I right in saying we might be able to add it to the mortgage as we borrowed less than we could have ?

I cant get it clear in my head why we cant buy the property and pay solicitor and deal with the stamp duty after the purchase, surely our tax due on the property is in some ways our own affair and not strictly linked to the purchase of a property from someone. I see for example there is a £300 capped 12month late fine for admin of the stamp duty which we would happily pay to buy us time to pay stamp duty further down the line?

Solicitors seem to add stamp duty into the bill without asking us but again this is a tax we have to pay cant we control how we want to deal with it away from the house purchase?

Thanks all.....we are a bit anxious at the moment all with fall apart on our purchase !

csgohan4

Perhaps be worried you cannot afford the extra stamp duty as things go wrong with houses all the time from a maintenance point of view, boilers roof e.t.c

SDLT_Geek

Sam_James wrote: »

She moved in 50/50 into a property with a previous partner, so she was signed up as 50% of the deal and lived there for 5 years.
So the fact this is my first mortgage doesnt stand for anything?

So no first time buyers' relief on a joint purchase.

The solicitor will not be able to complete the purchase without having the money for the SDLT from you, that is because of lenders' requirements. There is no away around this where you have a bank or building society as a lender.