Stamp Duty - Imminent Exchange

freeof1

Thanks for the reply. Although as I said we are FTB so the difference for us means paying the full stamp duty or paying nothing at all (assuming there's no in between option or a gradual transition should it be implemented!).

I can't see property prices adjusting so quickly to simply account for this change, especially when there are so many other variables at play in such an uncertain time. For example, the very nature of this 'announcement' will halt the market which may suppress prices slightly

. In addition, the people we are buying from are upsizing so its in their interest for the change to happen too as they'll save money on their purchase (better to pay for the SD on the sale of their house rather than the purchase of the more expensive one they're buying). The people losing out are those downsizing or completely removing themselves from the chain (eg dead, moving into care or moving abroad).

Yorkshireman79

unforeseen wrote: »

I don't see the problem.

They want in ASAP. You want shot of the house ASAP in case SD changes to your detriment so just go for it. Stay in rented until the SD question is decided. If it does change to seller then you've won. If it doesn't then you are no worse off.

Did it really need a thread to ask people about it.

Interesting post. It would be a very dull forum without people making threads. If you believe it didn't require a thread, why comment. Total bore.

BelowTheLine

We are in a similar position but fortunately/unfortunately, 2 links in our very long chain have fallen through in the last couple of weeks so it'll be a good few months for us to complete, at least.

I'd be gutted paying 35k SDLT today only to see it abolished in the next budget and transferred to the seller!

I'm all for a flat 1% tax paid by both seller and buyer.

Yorkshireman79 wrote: »

Hi,
Anyone else in a similar position and considering next steps?

We are probably 2 weeks from exchange. Our Buyers want to be in asap so I dont want to hold them up so would consider rented. The house we are buying would cost us 8.5k in SD so a considerable saving if there are changes to stamp duty next 4-8 weeks.

Ridiculous that ministers are discussing this publicly and adding unnecessary question marks over SD.

jaybeetoo

The Chancellor has no plans to shift stamp duty from the buyer to the seller https://www.bbc.co.uk/news/business-49390789

Steveal

It's all part of the prep for an election campaign. Merely a trial balloon to gauge reaction from relevant stakeholders. Probably went down like a lead balloon considering the make up of their likely voters.

jaybeetoo wrote: »

The Chancellor has no plans to shift stamp duty from the buyer to the seller <link>

RelievedSheff

jaybeetoo wrote: »

The Chancellor has no plans to shift stamp duty from the buyer to the seller https://www.bbc.co.uk/news/business-49390789

They could have said that weeks ago.

All their plan did was generate worry amongst those going through the house buying process.

Hopefully now people can continue with their purchases and know where they stand with regards stamp duty.

sal_III

I fail to realise how this will make any material difference and/or worth holding off house sale/purchase.

If i'm looking to sell today for £X with buyer paying £Y in SDLT, after this change (if it even happens) I will be looking to sell for £X+Y. With the money going through the solicitors regardless it's all pretty much semantics, who pays

The only advantage of the new system will be to allow the buyer to borrow the SDLT with the mortgage. But on the other hand this will make the Lenders uneasy about 95%/100% LTV since if they have to reposes and sell the SDLT can essentially put them in a position of negative security against the loan, even before other costs.

It's like pretending that the retailers/businesses are paying the VAT, since they are the ones actually transferring the funds to the taxman.

jaybeetoo

sal_III wrote: »

I fail to realise how this will make any material difference and/or worth holding off house sale/purchase.

Markets don’t like uncertainty.

buglawton

jaybeetoo wrote: »

The Chancellor has no plans to shift stamp duty from the buyer to the seller https://www.bbc.co.uk/news/business-49390789

A quick row-back by Javid then. First sign of incompetency from our latest chancellor. Not a good portent.

Crashy_Time

buglawton wrote: »

https://www.politicshome.com/news/uk/economy/news/105966/sajid-javid-floats-stamp-duty-shake-could-see-sellers-pay

Yeah that's gonna fly.
It's another Tory 'Dementia Tax' moment, Conservative turkeys planning a happy Xmas for themselves at the upcoming GE.

Middle classes will be frothing at this one. Downsizing? Big loss. Emigrating? Big loss.

It is not a big loss, they have had years of HPI, and although getting a buyer daft enough to pony up peak bubble price is unlikely nowadays they will be making a nice profit if they bought a house years ago, the politicians know there are loads of votes in being seen to "punish" people who have benefited from or were greedy with property, so the middle classes will just suck it up or risk being punished even harder under Corbyn.