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Original poster

To ask seller to reduce asking price due to stamp duty increase

380 replies

Ouch12 · 30/10/2024 14:55

Hello,
I am on the deeds for my parents house. They couldn't qualify for a mortgage as they were too old, so I was added to the mortgage.

I am now buying a house for myself - purchase has been ongoing for 2 months.

However, my can't buy me out from their current home - they just don't have the money.

In the Budget stamp duty on 2nd homes increased for 3% to 5%. This means I will need to find an additional £10k for stamp duty, which I don't have.
I will try to increase the mortgage amount to cover the extra £10kz

If the bank don't, I don't know how I will be able to afford the additional £10k. My parents are already gifting me money, so I cannot ask them any more.

Worst case, I might ask the seller to reduce the price by £3k -£5k but I'd imagine they'd be pissed.

Would you be willing to reduce the price if you were selling.

OP posts:
123sunshine · 30/10/2024 15:53

Actually have you been living at home with your parents in the property as you main residence? if so gift/disposal to them no cgt

GalacticTowelMaster · 30/10/2024 15:53

No you can't ask for this reason. However I just listened to a podcast today (meaningful money,) and it was talking about this scenario and there are mortgages which allow you to be on the mortgage but where you don't own the house. So it wouldn't affect you for stamp duty. This means you would have to remortgage against your mum and dad's house but potentially worth looking into. I will post the episode if you want to have a listen.

Curiossir · 30/10/2024 15:53

I would ask and explain why. They could say no, but they may not!

toomuchfaff · 30/10/2024 15:53

Ouch12 · 30/10/2024 15:48

Yes - mortgage is paid off.

Show quote history

If the mortgage is paid off now, and you're no longer needed for the intended purpose, then come off the property and problem solved. You're not a home owner and not in the 2nd homes bracket for stamp duty. Simple

Asking the seller to take the hit in this scenario is out of order.

JoMaloneCandles · 30/10/2024 15:52

You should be paying the normal rate not the second home rate. All you have to do is prove you weren't living with parents....or have you been?

IMustDoMoreExercise · 30/10/2024 15:51

Abra1t · 30/10/2024 15:44

If you did that to me, I'd shrug and suggest you looked at other properties.

So what.

A lot of people would compromise if they don't want the hassle of finding another buyer.

123sunshine · 30/10/2024 15:51

Ok so hopefully no large gains in the property?? get a low valuation to avoid CGT and do a transfer of equity to your parents (so gifting them your share of the property) but if there are large gains it he property then it may cost you more in capital gains tax.

Solomotree · 30/10/2024 15:51

You will also be subject to a shit load of capital gains tax when your parents house is eventually sold by the way. You need to speak to a financial professional asap

Startinganew32 · 30/10/2024 15:51

You could transfer the property back to your parents but that might attract CGT as you are disposing of an asset.

HowYouSpellingThat10 · 30/10/2024 15:50

I'm sure they won't be pleased about it but f the choice is you pull out then they may well be pragmatic.

No one can really answer this. It depends on so many factors like the length of chain, whether their next purchase is a one of a kind unlikely to come up again etc.

Your best clue might be how long it was on the market and the buoyancy of the local market.

It would be quite a risk for a seller who only got one offer (yours) after 9 months on market to lose a buyer for 3k given the circumstances you describe. We are heading into a traditionally poor period for house sales as the 'in before Christmas ' preference would now be extremely tight.

I think set out your circumstances, that you are serious about completing and seeing what they say.

If you have to borrow more that is a separate application and could take too long anyway.

User364837 · 30/10/2024 15:50

There must be quite a few people who have a fixed budget for it all and can’t just magic up an extra £10K just like that.

but then I can see if they had given notice there would’ve been an impossible scramble to get things through before the deadline like before.

SoupDragon · 30/10/2024 15:49

Why should the sellers pay for your "second home" problem?

Original poster
Ouch12 · 30/10/2024 15:48

123sunshine · 30/10/2024 15:47

Is the mortgage on your parents property now paid off?

Yes - mortgage is paid off.

OP posts:
SaveMeFromMyBoobs · 30/10/2024 15:48

Nope. Your parents need to downsize to release you from the mortgage.

ClytemnestraWasMisunderstood · 30/10/2024 15:47

But not in UK

123sunshine · 30/10/2024 15:47

Is the mortgage on your parents property now paid off?

Startinganew32 · 30/10/2024 15:46

ClytemnestraWasMisunderstood · 30/10/2024 15:45

Unless they were drinking heavily, they are unlikely to be pissed

Show quote history

In a lot of countries, being pissed is the same as being pissed off.

Calliopespa · 30/10/2024 15:46

BaronessEllarawrosaurus · 30/10/2024 15:43

It is fair because news the 2nd home stamp duty was increasing in this budget was common knowledge

Show quote history

And I don’t think it was knowledge. Until it’s actually announced it’s still a prediction.

ClytemnestraWasMisunderstood · 30/10/2024 15:45

Ouch12 · 30/10/2024 14:55

Hello,
I am on the deeds for my parents house. They couldn't qualify for a mortgage as they were too old, so I was added to the mortgage.

I am now buying a house for myself - purchase has been ongoing for 2 months.

However, my can't buy me out from their current home - they just don't have the money.

In the Budget stamp duty on 2nd homes increased for 3% to 5%. This means I will need to find an additional £10k for stamp duty, which I don't have.
I will try to increase the mortgage amount to cover the extra £10kz

If the bank don't, I don't know how I will be able to afford the additional £10k. My parents are already gifting me money, so I cannot ask them any more.

Worst case, I might ask the seller to reduce the price by £3k -£5k but I'd imagine they'd be pissed.

Would you be willing to reduce the price if you were selling.

Unless they were drinking heavily, they are unlikely to be pissed

Calliopespa · 30/10/2024 15:45

BaronessEllarawrosaurus · 30/10/2024 15:43

It is fair because news the 2nd home stamp duty was increasing in this budget was common knowledge

Show quote history

I’m not saying they should reduce. But the “ I’d not trust you” is harsh. It’s clear op didn’t plan properly, rather than anything deceitful.

Abra1t · 30/10/2024 15:44

If you did that to me, I'd shrug and suggest you looked at other properties.

Calamitousness · 30/10/2024 15:44

@Startinganew32 you’re quite right. I was over dramatic. I made it personal to me. I absolutely hate people that do this. It happens a fair bit. People offer and agree on price and then near date of completion start negotiating down. I hate it and genuinely would pull out and not trust the buyer any further. I think the OP needs to own up to her own responsibilities and cover it herself. Or pull out and buy a cheaper home.

BaronessEllarawrosaurus · 30/10/2024 15:43

Calliopespa · 30/10/2024 15:42

This is quite harsh given you know the budget came out today, effective from tomorrow. Yes, yes, op should, in an ideal world, have budgeted for worst case scenario; but it’s it clear what has caused her to fall short.

Show quote history

It is fair because news the 2nd home stamp duty was increasing in this budget was common knowledge

schloss · 30/10/2024 15:42

@Ouch12 I do not think you should ask the vendors, my suggestion would be to see if you can pay a slightly lower deposit to have a higher LTV - may need to reapply for the mortgage though sadly.

I would ask your parents for the extra amount in order to keep the purchase viable.

Do not be put off by any posts saying you shouldn't have two homes, you are doing what is right for you and your parents.

Calliopespa · 30/10/2024 15:42

WhereIsMyLight · 30/10/2024 15:08

Would you be willing to reduce the price if you were selling.

No. I’d see this wholly as your mess and why should I lose £5K. However, if we are genuinely close to exchange and this might mean I lose my buyer and my onward purchase, then I’d probably do a bit of wiggle room to about £2k. I would be really pissed off and I probably wouldn’t be writing you a note about how the boiler works, when bin day is, what the neighbours are called. I doubt I’d be breaking my back to leave the place spotless either. I would also expect it to go through without problems and I expect my buyer to be pushing to get completion done.

I wouldn’t trust you and I wouldn’t engage on anything after we’ve sold, so no reaching about how this works because I would 100% be expecting that you’re looking for another in to reduce the money.

This is quite harsh given you know the budget came out today, effective from tomorrow. Yes, yes, op should, in an ideal world, have budgeted for worst case scenario; but it’s it clear what has caused her to fall short.