Stamp Duty on New Build: Interesting Situation

davidmcn

FamilyFeud said:

Yeah the first part and I get it, like shooting yourself in the foot

There you go. They won't want to upset their golden goose by advising you to do anything contentious. Hope they didn't give you a bunch of other duff advice which you discover years later... 

FamilyFeud

No I have barely spoken to them to be honest, out mortgage broker has been the best to be honest. if we need to get a different solicitor involved we will do as it’s the higher end of the threshold so not something we would want to let slip which I fear many will.

davidmcn

FamilyFeud said:

No I have barely spoken to them to be honest

Well, it's the stuff they haven't told you you should worry about!

FamilyFeud

Well I’m not worried in that respect we have gone through every document and my dad works as a building inspector so not only are we protected from a building quality perspective but as he has visabilty on contracts day in day I feel suitably informed, however regardless of this it appears other national builders are ho luring it from other threads so have to wait and see.

FamilyFeud

Also just to add we are past our long stop date aswell so it’s in there interest to cooperate 

freezeortiz

FamilyFeud said:

So late last we heard from our solicitor and they were not helpful in the slightest they said go to the developer! So currently waiting from RedRow to see what is happening. I’m a bit shocked at the solicitors attitude tbh 

In the same boat here, used the "recommended" solicitor from Redrow - got an email last night saying that we "exchanged with a stamp duty incentive of £xxx, and as the liability no longer exists it remains to be seen whether your developer will simply withdraw the other or offer you other incentives"(?!!).  Also very shocked at their attitude.

When looking at our contract it says "Financial incentive £xxx" and it's all declared on our mortgage too in the same way. No mention of "up to" that amount like a few people on here have mentioned. Can't help but feel they shouldn't have a leg to stand on considering we've exchanged and are waiting for completion with the financial incentive on our contract in black and white?

We've been told to talk to the developer so will keep you updated for people in a similar position - at the moment we can't help but feel like the developer and solicitor are pulling a fast one.

MrLogical

freezeortiz said:

FamilyFeud said:

So late last we heard from our solicitor and they were not helpful in the slightest they said go to the developer! So currently waiting from RedRow to see what is happening. I’m a bit shocked at the solicitors attitude tbh 

In the same boat here, used the "recommended" solicitor from Redrow - got an email last night saying that we "exchanged with a stamp duty incentive of £xxx, and as the liability no longer exists it remains to be seen whether your developer will simply withdraw the other or offer you other incentives"(?!!).  Also very shocked at their attitude.

When looking at our contract it says "Financial incentive £xxx" and it's all declared on our mortgage too in the same way. No mention of "up to" that amount like a few people on here have mentioned. Can't help but feel they shouldn't have a leg to stand on considering we've exchanged and are waiting for completion with the financial incentive on our contract in black and white?

We've been told to talk to the developer so will keep you updated for people in a similar position - at the moment we can't help but feel like the developer and solicitor are pulling a fast one.

They are! I’ve seen on other threads that developers are paying this. Don’t let them get away with it. Get a new solicitor to fight it for you.

freezeortiz

freezeortiz said:

FamilyFeud said:

So late last we heard from our solicitor and they were not helpful in the slightest they said go to the developer! So currently waiting from RedRow to see what is happening. I’m a bit shocked at the solicitors attitude tbh 

In the same boat here, used the "recommended" solicitor from Redrow - got an email last night saying that we "exchanged with a stamp duty incentive of £xxx, and as the liability no longer exists it remains to be seen whether your developer will simply withdraw the other or offer you other incentives"(?!!).  Also very shocked at their attitude.

When looking at our contract it says "Financial incentive £xxx" and it's all declared on our mortgage too in the same way. No mention of "up to" that amount like a few people on here have mentioned. Can't help but feel they shouldn't have a leg to stand on considering we've exchanged and are waiting for completion with the financial incentive on our contract in black and white?

We've been told to talk to the developer so will keep you updated for people in a similar position - at the moment we can't help but feel like the developer and solicitor are pulling a fast one.

Quick update on this after a few conversations with our solicitor and developer:
I called the developer this morning and was told initially that Redrow would not be honouring the incentive as there is no stamp duty to pay - they argued we don't lose out we're still in the same position (not paying stamp duty), but as many of you can sympathise with, we agreed the purchase price and incentives package based on the chunk of stamp duty being taken care of - not happy! 

A short call to our solicitor and an hour later, we got a call back from the developer confirming they _will_ be honouring the incentive, and it will paid as cashback on completion. They initially pushed for more upgrades to our house (as they would, it costs them less) but we're past that stage of build so they could only offer us the cashback.

Hope this helps anyone in the same position - if you get told no initially, make sure to push back! 

rmd076

We have also had some movement today.  Developer has confirmed they will still pay the agreed incentive as cash on completion, subject to lender and HTB rules.  Its with mortgage broker now - HTB have told me on the phone that it is ok as long as under 5% of purchase price - no other restrictions.  

seanyseanerson

Anybody buying with Bellway had any movement on this yet? So far they're pushing us in the direction of extras like upgraded flooring or built in wardrobes, none of which we actually want, and I imagine it's because they can tell us they're giving us £2k worth of flooring when it only actually costs them £800-1200 or whatever to put in.