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Paying stamp duty

(5 Posts)
MarcoPoloCX Fri 17-Feb-17 17:59:27

Just want to know when is stamp duty usually paid when purchasing a property.

Also is it possible to pay from the sale proceeds of my current house and to pay that on the completion day as I do not have sufficient funds, but I have lots of equity on my current property.

minusten Fri 17-Feb-17 18:05:02

You usually pay the money over to your solicitor before completion. This includes stamp duty and is not normally negotiable.

You will need to check with your solicitor as to whether you can use the proceeds of your sale.

HollySykes Fri 17-Feb-17 18:07:23

No that's not correct, your solicitor will pay the stamp duty on completion from the proceeds of the sale so as long as you've allowed for it in your calculations you don't need to give them anything up front.

NaiceBiscuits Sat 18-Feb-17 21:57:16

What Holly said. You will probably need to pay the difference on exchange day, between the deposit that your buyer is paying, and the one for the house you're buying (if your new house costs more). If you haven't got that, you may need to get a bridging loan.

HollySykes Sun 19-Feb-17 12:26:54

I wouldn't worry too much about extra deposit either. The deposit is usually 10% on exchange, lets say you're selling for £100,000 and buying for £200,000 your buyer would pay£10k deposit and you'd pay £20k, but if you explain to the solicitor that you don't have additional funds to top it up they can ask your purchasers solicitor if they'll take a lower percentage. Most will agree to this, but you are still liable for 10% so if anything happened to stop you completing you'd still have to pay £20k.

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