Stamp Duty Query

SDLTQuery

Hi All,

I'm facing a hefty SDLT charge (~£25k) when I intend to complete in March. For various reasons, I'm a second time buyer - buy to live - property price £430k.

I'm hoping that there may be some reform prior to March, however, it's probably unlikely that second time buyers will benefit.

Anyway, I may be a little short on funds when it comes round to completing. I can borrow from a family member, but want to avoid doing so. Is there an option to delay SDLT payment, I know we have 2 weeks - but beyond that? I think I'd need a month or two.

I know there's a penalty, which is fine, but are there any obligations to the lender that would stop me from delaying SDLT payment, as my solicitor mentioned something about registering land charges - but I can't see anything mentioned in the mortgage offer....

Solicitor said:
"we would not be able to proceed to exchange and completion until we had funds from you in order to cover the stamp duty amount. We would be breaching our obligations to your lender as we would not be able to register their charge at Land Registry until we had the stamp duty submission form."

I've received my mortgage offer since. Can I still delay my SDLT payment, post completion?

hazyjo

As you're requiring a mortgage, you will have to pay ahead unfortunately.

If you're short of funds at completion, how will you manage financially if figures are that tight? Is your lender aware it's that tight, only I can't see why they agreed a mortgage if that's the case.

March is quite a long delay to complete. Is it a new build? It may well be delayed if so.

Borrowed money is frowned upon by lenders.

00ec25

SDLTQuery wrote: »

Solicitor said:
"we would not be able to proceed to exchange and completion until we had funds from you in order to cover the stamp duty amount. We would be breaching our obligations to your lender as we would not be able to register their charge at Land Registry until we had the stamp duty submission form."

I've received my mortgage offer since. Can I still delay my SDLT payment, post completion?

no you cannot delay it because you need a mortgage and therefore are constrained buy the rules the solicitor has to apply


your solicitor has explained exactly the rule they are required to operate. They simply will not complete if you do not have the funds with them before that date as they are not allowed to.


if you don't complete that of course may have other financial repercussions for you from the vendor's side.

foxy-stoat

How many properties will you own on the day of completion?

pinkteapot

As others have said, you'll have to be pay before completion.

March is a long time off to say you plan to complete then. If you're in a chain, dates talked about at this stage are very likely to change. If it's a new-build, there's a fair chance it'll be delayed if it's still being built. So completion may end up being late enough for you to pay anyway.

SDLTQuery

It would be gifted money rather than borrowed, which my solicitor has approved.

I delayed to March as I will have more comfortable savings to then start mortgage payments, so it won't be tight.

SDLTQuery

ok, I guess I just accept the gift then!

SDLTQuery

foxy-stoat wrote: »

How many properties will you own on the day of completion?

I will own one and my husband one also...

really wish we benefit from SDLT reform

AdrianC

SDLTQuery wrote: »

I will own one and my husband one also...

And for SDLT a married couple is treated as a single item.

Have you considered selling the other property...?