If you are making an offer on a house, and are eligible for stamp duty, is it possible to make an offer of the full asking price if the buyer pays the stamp duty?
Example: House on for sale for 350k. Stamp Duty 15k. Person is going to make an offer of full asking price if owner pays stamp duty, as they don't have enough cash to pay the stamp duty. (Instead of making offer of 335k).
Well you can but there are significant implications.
Most vendors would prefer not to be a party to this. Technically , they would be making a gift to you of the 15K with the tax implications that go with that. Plus is the value 335K or 350K?
By and large it is far better to go with the lower offer and just keep it clean, legible, unarguable, above board and not messy.
As a practising solicitor, I would have issues with dealing with a conveyance on this basis.
If you are making an offer on a house, and are eligible for stamp duty, is it possible to make an offer of the full asking price if the buyer pays the stamp duty?
Example: House on for sale for 350k. Stamp Duty 15k. Person is going to make an offer of full asking price if owner pays stamp duty, as they don't have enough cash to pay the stamp duty. (Instead of making offer of 335k).
Brother and girlfriend found a house they love but don't have all the money for the stamp duty. I said wait until they have the money but they thought they were onto a brainwave...bank willing to lend enough to cover asking price.
The bank will do their own valuation survey to make sure that they are not shelling out more than the property is worth - wont lend more than the real valuation.