"could lose the house"

N

nelly

Registered User
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was going to post the exact problem as below.
we (the buyers) went sale agreed 6 weeks ago and the contracts were signed 2 weeks ago by us but the sellers have yet to because they solicitor has not released teh 10% or drawn down the mortgage. He seems to be trying to find problems with it that are not there ie we got a gift of €20k from my sis initially when looking for a 92% mortgage, sis wrote letter stating she is gifting this money as a wedding present. He wants to get a statement to say that it is forming part of deposit and now we are subject to 5% tax on this - but we are getting a 100% mortgage...I just dunno what he is dragging his feet for.
Estate agent just called and was very abusive - telling us we could lose the house and we were taking too much time. but anyone i asked said it takes about 6 weeks.

We are both FT Buyers and this whole process is scaring the bejeepers out of us.
Need advice please how not to "lose house"
 
If i am reading correctly, you need to consider doing the following.

Contact the lending institution and get a 100% loan offer immediately.
Instruct your solicitor to return the contracts to vendor solicitor.

If the 20k is a loan from your sister, repay her from the surplus on completion of the sale.

If it is a wedding present, i cannot understand why the solicitor is concerned.

It appears that he want to charge stamp duty on the purchase price. You could contact the revenue and check the situation.
 
Could you explain what the solicitor is claiming you owe 5% tax on - the gift from your sisterr, or whole purchase price of the house? What tax exactly is this ?
 
tax on the gift €20k. because it may form part of the deposit...??
However i have just gotten off the phone with him - it was a delay tactic as he never sent the 10% cheque to the sellers solicitor with the contracts even though he had it a week ago. Now all of a sudden he understands that the money was a gift and no tax need be paid. But he put the fear of God in me for the past few hours while i was trying to figure it out.
 
Nelly the only way that I can see how you might have been liable for tax on the 20K from your sister is if you had exceeded your inheritance tax or gift tax exemption limits in the last 10 years (only the last 10 years is relevant).

Let's say you had received no gifts or inheritances in the last 10 years - then you would be permitted to take a gift tax free from a brother or sister up to a threshold amount €46,673.

Above that amount, gifts like that are taxed at 20% of their value above the relevant threshold. So I can't fathom how your solicitor mentioned a 5% rate!
 
Another abusive/incompetent EA story? Never! :D

Glad to hear it's all sorted now, g'luck with the purchase...
 
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