Concessionary Purchase Stamp Duty

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Comments

  • SDLT_Geek
    SDLT_Geek Posts: 2,496 Forumite
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    Hi OP,

    I would be interested to hear if Halifax and your conveyancers have now got to the point where it is accepted that the purchase price is £350K and that figure should go in the contract and transfer?
  • Kev1986
    Kev1986 Posts: 8 Forumite
    Offer is with solicitors for review, due to a hight valuation we adjusted mortgage and sell price



    now proposed £450 Value, £358k Sell, £357,450 Mortgage


    Were looking to sort it all quick so hopefully have full update in next few weeks.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Are your parents going to incur a Capital Gains Tax liability on disposal of the property? I assume the amount you are paying is to clear an existing mortgage, or pass across the orginal purchase price of the the property to your parents.
  • Kev1986
    Kev1986 Posts: 8 Forumite
    Evening all

    All completed last week so we’re back on the property ladder once again !

    Good news was that full sale went through on the lower stamp duty, the offer was very simple with no detail of gift or how the reduction in value was administrated. Just value and purchase price.

    Worked out very simple and smooth only little hiccup was that the bank wanted to re offer with our middle names detailed due to the inter family sale (I guess incase there were any others with the same name as us ?)

    Solicitor dealt with any tax liabilities and safeguard against future bankruptcy,

    Conclusion. Stamp duty was paid on purchase value and not value before discounts or concessions,
  • Tw1
    Tw1 Posts: 8 Forumite
    Hi there. Could you have a look at my thread? See my profile
  • Lucywilliams96
    Lucywilliams96 Posts: 3 Newbie
    First Post
    Hi everyone,

    My boyfriend and I have submitted a mortgage application to buy his nan’s house who passed away in November - the house has been left to my boyfriend and his three siblings so he will be getting a 25% share, some of which we are using as the deposit. 
    The only lender we are able to use is TSB, as no other lenders are accepting 100% furlough pay (my boyfriend has been furloughed). We aren’t able to wait a while until he’s back at work as the other siblings want a quick sale! 

    So... TSB are saying that it is classed as a concessionary purchase because we’re technically buying it from family, and therefore they are saying that he would have to use his entire share in the property as the deposit - which he doesn’t want to do as it’s a huge difference from the 15% minimum they initially required! From what I’ve been able to find out (on google haha), a concessionary purchase is when you buy a property below market value, however we aren’t buying the property at a reduced price, so surely they aren’t right? 

    Can anyone offer any advice? Thanks in advance :) 
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Name Dropper First Anniversary First Post
    Lucywilliams96 said:
    Can anyone offer any advice? Thanks in advance :) 
    Probably better if you start your own thread, rather than risk confusing people by resurrecting somebody else's different query.

  • Lucywilliams96
    Lucywilliams96 Posts: 3 Newbie
    First Post
    Sorry I’m new to this - how do you start a new thread? I just clicked on ‘new post’
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