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.

What? it only applies if you are buying 2nd property, not "normal" buyers.

Will only affect the very wealthy buying a place in Cornwall or BTL landlords.

I had to pay an extra 7k in order to buy a relative a house to live in or she'd be living in temp housing at 10k per month, no exceptions for this.

The 3% Richi added didn't crash the market, i doubt this extra 2% will either.

You can ask. You never know if they are far along with it and want to move they may agree rather than have to go back out to the market. I would exhaust all other options first, and explain it all with many apologies.

Not sure 3 is correct. If you have a loan agreement with your parents then this is something that they owe so threshold for fees will need to take that into consideration as presumably it looks at debts.
You can also register a charge against the property much like a mortgage company but that only works if they don't have a mortgage

The removal and lowering of the Stamp Duty thresholds will affect every house buyer.

How will it affect non second home owners though? As the threshold change only applies to those?

Has there been anything indicating how many sales / what percentage of sales are likely to be affected? I’ve not seen anything, and genuinely don’t know what percentage of sales are to people who own multiple properties (and who are the only ones affected by this change)

Solicitor friend had 4 today !!!

It’s the effect that has on associated sales and purchases, chains etc

I'm not surprised! There will be lots of people trying to renegotiate a bit following the budget. It's annoying but it's expected when taxes rise.

If I was absolutely desperate to sell my house now then yes I might considering dropping by say £2k, but absolutely no more. I know you say your parents can't afford to buy you out - but could they afford to contribute something to the stamp duty?

Years ago we were happy to do this but It's a whole different world now and so much harder to haggle. Xx

You don’t need to pay if this is going to be your main residence. Happened to us. We bought my mil house then bought a house that was our main residence. We didn’t have to pay extra as this was to be our main house.

Exactly what’s in it for the seller?

ask the estate agent to drop their fees otherwise they lose the sale. the fees can often be 3-5k so might help a bit ?

Why would they do that? 😂
If they lose that sale, they’ll get their commission on the next one.
Op isn’t the only one who can possibly buy it.

well the estate agents dropped their commission. when we bought one of our houses as seller increased value. they need to sell more than one house to make a living. they contributed 2k so it’s entirely realistic to ask

Could you sell their house then buy a bigger house with a granny annex for them to live in?

Sounds like you're better off keeping your name on your parents house.

Can you borrow money to use towards the new house? Take out a small loan? The seller may not reduce the price but you could try asking.

Check with the solicitor if the new stamp duty rules apply to conveyances already in motion, I can imagine a lot of sales will fall through otherwise..

This is also correct

You will not be residing in both properties so your new home is now your main residence so you should just be paying to normal rate not the second home rate.

She still owns two homes, with the option to live in either one.
The second home thing still applies.

Do not remove your name from the property

Option 1: increase mortgage by £10k
Option 2: ask for £5k reduction & increase mortgage by £5k
Option 3: ask for £10k reduction
Option 4: get a loan for £10k
Option 5: pull out & find a cheaper property

Completely incorrect

@TigerSteak - why is the previous poster incorrect. I am 99% sure I will have to pay as on the date of completion I will own two residential homes.

The second home thing doesn’t stand as you chose which one is your main residence. So the OPs new home is going to be her main residence.
We lived in rented due to my husbands job in 2012 and bought my mil’s house in 2012.
We bought a house in 2014 in Scotland so didn’t pay the stamp duty as different in Scotland.
We sold this house in 2016 and still owned MIL house and she lived in it. We then purchased a house for us in 2017 and they tried to make us pay the higher rate but it didn’t apply as we were going to be living in the new house and was classed as our main residence.
Maybe our circumstances were different as we never lived in MIL house. But the concept is the same.