Deed of gift from my Dad with mortgage. Solicitor calculation query?

smcross

I 'bought' a house of my dad for £220,000, his mortgage was £103,00. I wanted to borrow more on the mortgage so got a mortgage of £147,000.

The solicitor letter states that because we wanted to borrow more it would read £73,000 as deed of gift.

The whole £147,000 was paid to the solicitor, they paid off the outstanding mortgage of £103,000, took off their fees and Stamp duty = £10,000 then were to pay the remainder to my Dad, who was to then give as gift to us. My issue is this figure should have been £33,000 only my Dad received a cheque of £20,000.

Am I missing some fees here? My solicitor has since Ceased trading.  Any help would be much appreciated x

MovingForwards

When did you 'buy' the house?
Were you a first time buyer?
How much were the legal fees?
Was there a mortgage arrangement fee?
Have you contacted the law society to see who holds the paper file so you can query it?

foxy-stoat

Yes you are missing something.  If you were a first time buyer then your SDLT would be zero, if you weren't a FTBer then your SDLT should of been £440.  Either way £9,000 + in solicitor fees is far too much.

Did you actually see the Redemption Certificate from your Dad's lender, so I think that figure may of been incorrect.

davidmcn

foxy-stoat said:

Yes you are missing something.  If you were a first time buyer then your SDLT would be zero, if you weren't a FTBer then your SDLT should of been £440.  Either way £9,000 + in solicitor fees is far too much.

OP's other posts suggest they have another property, in which case there'd be the additional property supplement. Would help if we knew which country the property is in and when this happened.

smcross

Thank you guys,

It was in the UK and it was my second property so higher fees of stamp duty.

Just unsure where the rest went.

smcross

Legal fees were £660 & SDLT £8,500 plus all other bits and pieces like search fees added to approx. the £10K.

foxy-stoat

Your solicitor messed up the SDLT calcualtions, you shouldn't of paid £8500 on a £220,000 property if £73,000 was gifted, even with the additional tax.

SDLT_Geek

£8,500 is the correct SDLT if the price agreed and shown on the transfer was £220,000.  Lenders often require the full value to be shown, even though there is a gift involved too.  There is an article about SDLT and concessionary purchases here: https://www.blakemorgan.co.uk/bank-of-mum-and-dad-concessionary-purchases/