Stamp Duty on New Build: Interesting Situation

ChloeHanlon22

Update: our builder has today agreed that they will still honour our £11,250 as a cash incentive, although they did try to give turf and flooring at first. 

It may be worth mentioning we have not yet exchanged contracts so would have been easy for us to pull out of the sale, maybe that influenced them. Although I didn’t even have to say that, I just simply said well our agreement is the same no? And they ‘got back to me’. 

I genuinely feel for everyone in this situation, worse things have happened, but an agreement is an agreement in my opinion, anything else is greedy on the builders part. 

monkeymarbles

seanyseanerson said:

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.

Yes - Bellway have been excellent with me and were ok with cash. But we've already sorted something for wardrobes and floors etc... and it's past the stage when they've already ordered things so there were no more non-cash incentives they could really offer.

MrLogical

So we now have Bellway and Redrow agreeing to honour their promise which is fantastic. Any other developers we can add to the list which will help people with these discussions?

SharkMoney

Ive had a call from Bloor, they have decided to pull the incentive across the board stating that the govenment have done it to help the builders too and that we are technically not out of pocket.

MrLogical

SharkMoney said:

Ive had a call from Bloor, they have decided to pull the incentive across the board stating that the govenment have done it to help the builders too and that we are technically not out of pocket.

What is the wording in your contract? Other developers are paying so this could all come down to the way yours is worded. 

Defangled

SharkMoney said:

Ive had a call from Bloor, they have decided to pull the incentive across the board stating that the govenment have done it to help the builders too and that we are technically not out of pocket.

We're purchasing with Bloor, and they are honouring it for us. Albeit we are yet to exchange. Our broker has been brilliant bashing heads today on everything and (waiting for written confirmation) apparently it will be declared on the UK disclosure of incentives form as £xxx 'Mortgage paid for x months', £xxx 'Removals' to make up the figure. This is due to our lender only accepting stamp duty or legal fee cash incentives.
At least.... that's our current belief...  

SharkMoney

Defangled said:

SharkMoney said:

Ive had a call from Bloor, they have decided to pull the incentive across the board stating that the govenment have done it to help the builders too and that we are technically not out of pocket.

We're purchasing with Bloor, and they are honouring it for us. Albeit we are yet to exchange. Our broker has been brilliant bashing heads today on everything and (waiting for written confirmation) apparently it will be declared on the UK disclosure of incentives form as £xxx 'Mortgage paid for x months', £xxx 'Removals' to make up the figure. This is due to our lender only accepting stamp duty or legal fee cash incentives.
At least.... that's our current belief...  

Can you reveal to me site/plot so I can use as ammunition?

A_Pawsey

Stamp Duty Holiday - who should benefit, the developer or the buyer?
We have just helped our 88 year old mother to move to a retirement apartment. Completion was on 17 July 2020. We agreed a package of buying incentives with the developer to include:- 
Churchill package: £1,000 towards Estate Agents fees; £ 2,200 Solicitor/Legals ; £1,000 Removals ; £330 SMP (this is for six hours of our downsizing service – Senior Move Partnership); £2,339 Stamp Duty; £10,000 Discount.
The total of the contributions agreed =  £6,869.  This contribution was significantly reduced to £4530 as the Stamp Duty element was no longer applicable at the time of completion. 
Despite our emails to the Developer we have not had any offer to redress this situation to date (31 July 2020).
It raises the question: Was the Stamp Duty holiday introduced by the government to benefit buyers or developers?

davidmcn

A_Pawsey said:

Stamp Duty Holiday - who should benefit, the developer or the buyer?
We have just helped our 88 year old mother to move to a retirement apartment. Completion was on 17 July 2020. We agreed a package of buying incentives with the developer to include:- 
Churchill package: £1,000 towards Estate Agents fees; £ 2,200 Solicitor/Legals ; £1,000 Removals ; £330 SMP (this is for six hours of our downsizing service – Senior Move Partnership); £2,339 Stamp Duty; £10,000 Discount.
The total of the contributions agreed =  £6,869.  This contribution was significantly reduced to £4530 as the Stamp Duty element was no longer applicable at the time of completion. 
Despite our emails to the Developer we have not had any offer to redress this situation to date (31 July 2020).
It raises the question: Was the Stamp Duty holiday introduced by the government to benefit buyers or developers?

My question is what did the contract say, and if it stated she was getting a £2339 discount why did she complete without that being deducted from the price? What was the advice from her solicitor? (please tell us it wasn't a "tame" one recommended by the developer)

A_Pawsey

I'm afraid it was a "panel" solicitor!  They merely recorded Stamp Duty as "Nil" on the final account.