Stamp Duty new build incentive question

San_Jose

Following on from the Chancellors announcement a short while ago about the introduction of an immediate stamp duty holiday. My partner and I recently reserved a plot on a new build development. We have a mortgage but haven't completed or paid the deposit etc. The developer as part of our original agreement where paying for our Stamp duty (around 14k). Where would this leave us in this situation. Are we in a good position to get them to cough up for extras to the same value etc or are they likely to change our original agreement? I have called the developer but understandably they are now very busy! 

ACG

I think you can probably expect them to honour your agreement. If your stamp liability is now £0, thats gone in their favour. 
I dont think you can expect them to throw in another £14k worth of stuff for you, but if you dont ask and all that...

Lorenzo94

I have a question. I have just received a mortgage offer for a shared ownership flat. Could I take advantage of the stamp duty holiday now so that I won't be liable for it in the future when I staircase?

RPF1992

We have a mortgage application in for a new build property in London, which is priced at £550,000 - does this announcement mean that we will now only pay for SDLT on £50,000 of the property price or does this announcement not count for people who are over the £500k threshold?

IloveElephants

Someone on the radio just said this SD Holiday will push prices higher as sellers will factor in this difference? How accurate is this

Fairway12

San_Jose said:

Following on from the Chancellors announcement a short while ago about the introduction of an immediate stamp duty holiday. My partner and I recently reserved a plot on a new build development. We have a mortgage but haven't completed or paid the deposit etc. The developer as part of our original agreement where paying for our Stamp duty (around 14k). Where would this leave us in this situation. Are we in a good position to get them to cough up for extras to the same value etc or are they likely to change our original agreement? I have called the developer but understandably they are now very busy! 

Also very interested in the outcome of this.
We have exchanged and due to complete in the next month. The contract says the developer will pay a monetary incentive to the buyer on point of completion. That was the agreed deal when we exchanged and is legally binding as far as i'm aware. If they try to get out of paying the incentive then surely they are in breach of the contract?

foxy-stoat

IloveElephants said:

Someone on the radio just said this SD Holiday will push prices higher as sellers will factor in this difference? How accurate is this

Its just someone's opinion on the radio - probably not accurate unless everyone suddenly increases the price for their properties.

davidmcn

San_Jose said:

The developer as part of our original agreement where paying for our Stamp duty (around 14k). Where would this leave us in this situation. Are we in a good position to get them to cough up for extras to the same value etc or are they likely to change our original agreement? I have called the developer but understandably they are now very busy! 

They ought to still be giving you a £14k discount, as that's what they've budgeted for.

Calling it "paying for your stamp duty" is just as much a gimmick as furniture shops which say you "pay no VAT this weekend" (obviously they do pay VAT, they're just discounting their prices).

San_Jose

Just re read my reservation document (as stated I haven't completed yet and it states:

Costs to be paid by (developers name): £14xxxx
Details of costs to be paid by (developers name): £14xxxx stamp duty 

Looked at some old posts on here from the last time stamp duty was changed and it sounds like the wording of this is important. Time will tell I guess. Hopefully hear back from the builder soon.

foxy-stoat

They would of already inflated the price to include for the discount - just ask them amend the contract, assuming you can complete in time.  You are on the wrong board though, theres a board full of these types of questions.

Fairway12

San_Jose said:

Following on from the Chancellors announcement a short while ago about the introduction of an immediate stamp duty holiday. My partner and I recently reserved a plot on a new build development. We have a mortgage but haven't completed or paid the deposit etc. The developer as part of our original agreement where paying for our Stamp duty (around 14k). Where would this leave us in this situation. Are we in a good position to get them to cough up for extras to the same value etc or are they likely to change our original agreement? I have called the developer but understandably they are now very busy! 

Had it confirmed today that our house builder will still being giving us the incentive as a reduction in our deposit.