exiges Posted September 25, 2010 Share Posted September 25, 2010 http://www.rightmove.co.uk/property-for-sale/property-15779148.html Saw this, looks they've dropped their price from £675,000 to £550,000 and have added this to the details: "Vendors will contribute to difference in stamp duty over £500,000" They won't need to if they accept £499,000 (or less !) will they Quote Link to comment Share on other sites More sharing options...
assetrichcashpoor Posted September 25, 2010 Share Posted September 25, 2010 They haven't said how much they'll contribute. From my basic sums, stamp duty at 4% on £550,000 is £22,000. Stamp duty on £500,000 at 3% is £15,000. Are they going to pay the full £7,000? Quote Link to comment Share on other sites More sharing options...
robo1968 Posted September 25, 2010 Share Posted September 25, 2010 (edited) I suppose the maths stacks up, if they sell it for £507+ they are better off It is one thing paying say £525 for a house, atleast it feels like yours but it is another paying £7k to the Gov't for f**k all Edited September 25, 2010 by robo1968 Quote Link to comment Share on other sites More sharing options...
Protect Rural England Posted September 26, 2010 Share Posted September 26, 2010 http://www.rightmove.co.uk/property-for-sale/property-15779148.html Saw this, looks they've dropped their price from £675,000 to £550,000 and have added this to the details: "Vendors will contribute to difference in stamp duty over £500,000" They won't need to if they accept £499,000 (or less !) will they Always makes me laugh when vendors start throwing in things with the deal. Hvae the Porsche/Aston etc Why not just lower the price and throw in the wife too? Quote Link to comment Share on other sites More sharing options...
lets get it right Posted September 27, 2010 Share Posted September 27, 2010 When I look at houses like that - it seems the madness has crept all over the country. Makes houses where I live - Silicon Triangle between Reading, Bracknell and Basingstoke, handy for M4, M3 and M25 and not too far from London - seem positively good value. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted September 27, 2010 Share Posted September 27, 2010 Got a leaflet through the door today from Bovis homes. They will give me free Sky TV, Broadband & Phone for a year if I buy before 31st October but I have to "hurry". I think it must point to three things. Bovis are desperate, Sky TV is now too expensive as why would they think anyone would have cared about that offer a few years ago and it must be end October because they are worried about the spending review. Quote Link to comment Share on other sites More sharing options...
Caveat Mortgagor Posted September 27, 2010 Share Posted September 27, 2010 Cant imagine anyone who can pay £300k for a house wanting to live here, but hey, the vendor will pay stamp duty. S'pose the £40k they have knocked off the asking price will make paying the stamp a but easier for them! http://www.rightmove.co.uk/property-for-sale/property-26629060.html?premiumA=true Quote Link to comment Share on other sites More sharing options...
pablopatito Posted September 27, 2010 Share Posted September 27, 2010 Can someone explain the concept of the vendor paying stamp duty? An estate agent tried to explain it to me when they wanted us to go over our £250k offer but I wasn't really listening. It appeared to me that the vendor pays the stamp duty with the money that I give them! That's not them paying it, that's me paying it. For example, paying £270k, and them paying the stamp duty is roughly the same as paying £262k and me paying the stamp duty. In both cases, I'm forking out around £270k, the taxman is getting around £8k and the vendor is getting around £262k. Giving the vendor an extra £8k and then having them give it straight to the taxman seems to be a complete waste of everyone's time. Does it just come down to conning the mortgage company about the actual valuation of house (ie is the property value £270k or £262k in my example above). And if so, surely its a con and the mortgage companies see straight through it? Quote Link to comment Share on other sites More sharing options...
Caveat Mortgagor Posted September 27, 2010 Share Posted September 27, 2010 (edited) Can someone explain the concept of the vendor paying stamp duty? An estate agent tried to explain it to me when they wanted us to go over our £250k offer but I wasn't really listening. It appeared to me that the vendor pays the stamp duty with the money that I give them! That's not them paying it, that's me paying it. For example, paying £270k, and them paying the stamp duty is roughly the same as paying £262k and me paying the stamp duty. In both cases, I'm forking out around £270k, the taxman is getting around £8k and the vendor is getting around £262k. Giving the vendor an extra £8k and then having them give it straight to the taxman seems to be a complete waste of everyone's time. Does it just come down to conning the mortgage company about the actual valuation of house (ie is the property value £270k or £262k in my example above). And if so, surely its a con and the mortgage companies see straight through it? If you paid it yourself you would be 3% of 'around £8k' better off. If you let the vendor pay, you are paying stamp duty on the stamp duty! Edited September 27, 2010 by Caveat Mortgagor Quote Link to comment Share on other sites More sharing options...
CHF Posted September 27, 2010 Share Posted September 27, 2010 Can someone explain the concept of the vendor paying stamp duty? An estate agent tried to explain it to me when they wanted us to go over our £250k offer but I wasn't really listening. It appeared to me that the vendor pays the stamp duty with the money that I give them! That's not them paying it, that's me paying it. For example, paying £270k, and them paying the stamp duty is roughly the same as paying £262k and me paying the stamp duty. In both cases, I'm forking out around £270k, the taxman is getting around £8k and the vendor is getting around £262k. Giving the vendor an extra £8k and then having them give it straight to the taxman seems to be a complete waste of everyone's time. Does it just come down to conning the mortgage company about the actual valuation of house (ie is the property value £270k or £262k in my example above). And if so, surely its a con and the mortgage companies see straight through it? If you only have the 'borrowing' to finance them purchase and not much actual cash then iot helps lot. Stamp duty must be paid for with cash and not wth mortgage funds. Quote Link to comment Share on other sites More sharing options...
pablopatito Posted September 27, 2010 Share Posted September 27, 2010 Stamp duty must be paid for with cash and not wth mortgage funds. So I take out a bigger mortgage in order to give the vendor the money to pay the stamp duty in cash. Is it just a big con then? Quote Link to comment Share on other sites More sharing options...
CHF Posted September 28, 2010 Share Posted September 28, 2010 So I take out a bigger mortgage in order to give the vendor the money to pay the stamp duty in cash. Is it just a big con then? No, listen again. Stamp duty cant be paid out of mortgage funds. The sale value is what the bannk lends you. Stamp Duty is paid in cash to the solicitor, before you get the mortgage money. Unless you find a bent solicitor to falsify the Certificate of Title and sales docs then no. Quote Link to comment Share on other sites More sharing options...
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