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

[Ouch12]

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.

No im sorry I wouldn't not for this reason

No.

Why should a total stranger get less money selling their house so you can pay the same due to a change in law?

It's your "loss" to bear, not theirs.

I think the vast, vast majority would be unwilling to do that. If they were desperate to sell they might consider it, I suppose. But you'd have to be very lucky.

No sorry, I wouldn’t.

You are basically asking them to reduce their house prices because your parents can’t afford to live in the house they do, which means you have 2 properties.

This is your parents mess to sort out. They need to find a way to give you the money

How long before the rise kicks in? If tomorrow, you have today to complete if feasible?

Why on earth would the seller reduce the offer price because you own two homes?

That ship has long since passed - they are pensioner, with only a state pension and a small amount of private pension.

Sorry.. its your circumstances to deal with im afraid.
You mention your parents giving you money ... could you not take that as them buying you out of their house?

We are a few weeks from completing. The increase is effective from tomorrow.

Most sellers would go down by 5k with a buyer at this stage. But they may require a financial guarantee you won’t drop out.

No, I wouldn't. My house is worth what it's worth, I wouldn't reduce the price just because a stranger can't afford it.

If it's the only thing that would save the chain, and if other people in the chain were willing to share the load, it's not unprecedented. Worst case you ask and they say no

I wouldn’t reduce my house price under these circumstances. Why should I take a loss so you don’t have to sort it out? The money I would need to move on and pay all my own costs have been factored into the selling price so I would say no and if that meant waiting for another buyer then I would wait

Cant you get off your parents deeds and save all the second home stamp?

I don't think the stamp duty increase would be a reason for anyone to reduce the asking price. They might reduce it because they can't find another buyer and you are ready to go ahead. Most likely they will also have extra stamp duty to pay on their next purchase.
But you can always ask.
EDITED to remove a comment about second homes, but it was already covered.

Did you actually pay the mortgage and is it still running if they are of pensionable age?

If you were there effectively as a guarantor rather than having a financial interest in the property then you should be able to transfer it fully to your parents if the mortgage is paid.

If you do have a financial interest in the property then the place you are buying is genuinely a second home unless you can make your parents' place the second home and accept future capital gains liability on that property (something to consider with the place you are buying if its designated a second home).

Have you not taken legal advice on all this as part of the buying process? It can be complex and worth getting the right advice.

Implementing a rise tomorrow is ridiculous. I wouldn't be surprised if quite a few chains collapse as a result.

Talk very carefully to your solicitor and it might be worth getting a 2nd opinion if he disagrees but you should not be paying 2nd home stamp duty for a property that is going to be your main residence. You would then pay cgt on the other property when you do sell it. My parents had this issue and had to point the solicitor in the right direction.

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.

You're probably on the deeds cos you'll inherit the house and it's an IHT avoidance of sorts. You'll have to the find the money!

I'm.not sure what I'd do, most likely agree to half but be very pissed off and manifest you a broken boiler or something.

They can buy you out of the home using equity release, you can/they can make payments to the ER to cover the interest and/or as a repayment mortgage of sorts. ER can be used as a form of mortgage for older people. Worth looking into - Go on the Equity Release Council website for more info. If you're only a few weeks from completion this may not go through in time but worth a look.

Is their mortgage paid off? If so, come off the deeds?

Well I’d be irritated but if the choice were the sale falling through or a reduction I’d have to think how long had my home been on the market before I accepted your offer, would I realistically be able to get another offer to match the current price in a reasonable time or has the market changed, does it impact my own purchase/rest of chain, do I need to sell at all? It totally depends on the situation. I have no doubt the seller would be furious but if you can no longer afford it then why not ask, if they say no, the sale will fall through anyway 🤷‍♀️