Stamp duty incentive on new build

whizz2020

Morning, I am getting ahead of myself however interested in everyones view.
We are in the process of buying a new build (exchanged but not completed), one of the incentives we have secured is the developer (Countryside) looking after our stamp duty cost (£4k). 
If the rumours are true and there is a stamp duty holiday and IF it's announced and implemented soon rather than autumn (crazy) then would you expect Countryside to still give us the £4k or as there's no stamp duty to pay they essentially save £4000.
Thanks

davidmcn

What exactly does your contract say about it? It would make more sense to make it a fixed discount of £4k rather than "whatever your SDLT happens to be at the date of completion".

dexterwolf

I don't think they will have to pay you it but does depend on the working in the contract . As if they don't have to pay it due to a change in rules and regulations then there is nothing for them to pay you . I suppose now you have exchanged you can't really ask them to drop the 4k off the price either.

AdrianC

IF the rumours do turn out to be true, then that's a conversation you'll need to have with them.

If they say "no", then you would need to decide whether that affects you wanting to continue with the purchase... except you can't pull out, because you've exchanged.

whizz2020

In our contract: "the Incentives - £4,000.00 being a contribution towards stamp duty"
Thanks

davidmcn

Jamesdhyam said:

In our contract: "the Incentives - £4,000.00 being a contribution towards stamp duty"

There we go - it's a £4,000 discount. Doesn't matter whether your SDLT is actually £0 or £12,000.

foxy-stoat

Have you told your lender about all the incentives?  My lender reduced the amount they wanted to lend us by £10,000, which was the same value as an incentive the developer offered us, once they know about it.

davidmcn

foxy-stoat said:

Have you told your lender about all the incentives?

Given they've already exchanged, I hope their solicitor has already dealt with it!

OldMusicGuy

It's how davidmcn describes it if you have agreed it in writing. The developer does not pay stamp duty, you do. They are just giving you a discount based on  the value of stamp duty. So it's irrelevant what the actual amount of stamp duty you pay is when you complete. The 4K will be deducted from what you pay to the developer in your completion statement.

Mind you, you still have to hope that this SDLT reduction comes in and applies within your timescales....... 

Sweeney1

daughter in same position. Not at exchange stage yet. Should she try to get solicitor to handle changing wording in contract with developer to say discount equivalent to stamp duty?

davidmcn

Sweeney1 said:

daughter in same position. Not at exchange stage yet. Should she try to get solicitor to handle changing wording in contract with developer to say discount equivalent to stamp duty?

That depends what the wording currently says, surely?