Can I take a loan to pay my stamp duty for a BTL purchase?

andy_999

Hi, 

 We are buying a small BTL and We have full money for the deposit. Our Conveyensing solicitor has done everything  including varying our deposit funds. 

I am expecting some funds as a gift from my parents to pay for shortfall to pay the stamp duty but it’s taking a bit longer as they have to sell something. But we need to exchange and complete our property purchase asap as vendor is chasing us for it. Can I take a personal loan to fulfil the shortfall to pay the stamp duty and forward that money to solicitor to complete the transaction? Do my solicitor has to inform my lender that I have taken a loan to pay the stamp duty? Does my lender mind it? Please note that it’s a Buy to Let purchase and not a residential. Thanks 

alanyau88

You must declare this to your solicitor and your lender.  Anti-money laundering checks are there for a reason.  Speak to your solicitor for legal advice if in doubt.

user1977

Whether or not your solicitor checks the source of funds for SDLT depends on their firm's policy. But in any event, you presumably declared to your lender what (if any) other loans you have - and if that changes before completion, you need to update them.

silvercar

Discuss with your solicitor whether you can pay the sdlt after completion. Some may be ok with this but most will not. Technically you have a few weeks to pay, but solicitors generally require all the money before completion.
If the solicitor insists on the money in advance of completion then maybe your parents could take the loan, assuming they trust you, that way the solicitor won’t have reason to tell the lender that you have another loan.