Paying Stamp Duty?

M

mpob

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I just want to get some clarification on procedure of buying house re. closing / stamp duty etc. we are trading up and will have cash deposit of 50k approx. for purchase. Stamp duty will be 45k (unless they abolish it lol). when we sign contracts do we need to have another 45k in cash for stamp duty or can it be included in mortgage? i.e do we just write one cheque for full amount and let solicitor deal with it
??

Sorry if post sounds confused but it reflects where I am at.
 
you don't roll up stamp into mortgage - it is a seperate cost due roughly 30 days after closing.
 
Do your sums and work it out:

Purchase price: E600K
Plus Stamp Duty :E45K
Plus fees etc.: E3K

Total: E648K

Less deposit: E50K

Balance to fund/fund:E598K

Assume you are getting a 100% mortgage - even then 100% mortgage is 100% of house price - not house house price plus stamp duty.

Deposit is due at contract signing stage. Balance purchase price is payable at closing/completion. Stamp duty is due 30 days after closing - but solicitor needs to be in funds at closing.

mf
 
Does that mean that we need to have 50k approx cash for deposit and another 45k cash for stamp duty? If so the actual extra mortgage will be in the region of 50k. But what a lot of cash to find.
 
I don't understand. The cost of the house is house price plus stamp duty. There is a total. There are two stages : deposit at contract stage and balance of purchase price/stamp duty at closing. You pay all of these by a combination of own funds and mortgage. You have to find the money somewhere!

mf
 
Sorry if confusing. Just to clarify. to purchase a house at 600k you require cash deposit of 60k a mortgage of 540k plus cash for 42k for stamp duty. (plus fees)

total mortgage 540
total cash 102

?
 
Its house price plus stamp duty. You may be getting a mortgage for some or all of the purchase price - you may not - you may have a spare 100K hanging around. The amount that you need to borrow is 642K less any savings = mortgage.

Yes it is a lot of money to find. Unless you can borrow it all but a lender will only lend on the value of the house. You could buy a new house as an owner occupier and not pay any stamp duty. Or you could buy a cheaper house and you would not have to borrow or find so much.

mf
 
mpob said:
Sorry if confusing. Just to clarify. to purchase a house at 600k you require cash deposit of 60k a mortgage of 540k plus cash for 42k for stamp duty. (plus fees)

total mortgage 540
total cash 102

?
Click to expand...

Yes.

You are correct here if you are looking for a 90% mortgage. You cannot include stamp duty in your mortgage.

ANother way if you can't get €102K cash for deposit and sd would be to get a 100% mortgage for the price of the house (€600K) and use your spare cash to pay fees and Stamp duty.

Otherwise keep saving :)
 
I thought only First Time Buyers could get 100% mortgages and mpob is trading up? Would appreciate if someone could clarify this as am trading up myself and would look into 100% if I thought it was possible.
 
No, you are correct deedee80, 100% mortgages are restricted to FTBs - some lenders require both applicants to be FTBs, while others will lend 100% where just one of the lenders is a FTB.
 
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