Making an offer, and stamp duty

[Misty9]

Interested in what others would do...

House on for £275-285k and offer is to pay 2% stamp duty in that range (around £5k). We're thinking of offering £265k, but then wouldn't get stamp duty help and foot total bill of £8k..

So in my mind, it might be worth offering higher in order to save on capital outlay, given its only really a £4k increase over 30yrs really... But is this short sighted?

Sorry, would like to help, but I don't understand ... can you expand a bit?

doesn't make sense to me - why choose the option that means you pay more for the house?

You'd still save £10k off the minimum amount that they would accept in order to pay stamp duty though so you're still (marginally) ahead of the game. You could offer £265 on condition that they pay 1% of stamp duty perhaps.

Are they allowed to pay the stamp duty? I thought the buyer had to pay

As long as stamp duty gets paid the govt don't care who pays it.

Are you compounding the interest on that 4k over the 30 years?

It is more to do with the price which is submitted to Land Registry. seems odd but perhaps they want to show a profit/break even on paper.

Are you going to bother replying op?

LIZS, can you elaborate a bit? the price on LR would be with or without stamp, and how could sellers benefit? I was in sane situation and never questioned it as a buyer, but thought maybe it's good if sold price shown included stamp (or is it nothing to do with this?)

should add they were prof property developers, something to do with profits?

Sorry, been at second viewing of property and having dinner/putting rugrat to bed etc.

Yes, I mean if we pay below 275 then no help with stamp duty. I think they're doing it to avoid people offering below the threshold of 250. I haven't thought about compound interest, no.

My thinking is that by offering higher - and getting their help with stamp duty - then we don't have to pay out as much up front, but it will cost slightly more in the long run. With deposit, fees and stamp duty, the initial outlay is substantial and I suppose I'm attracted to that being lessened somewhat...perhaps leaving more money for doing bits and pieces/buying furniture.

LR price would be before any rebate on Stamp Duty . So they'd be able to say they sold for 275 even if the Net effect is lower. They advantage may mean ostensibly there is no negative equity or perhaps outstanding balance on a mortgage.

Developers were doing this a lot to make ensure that the land registry price was the highest it could be, didn't want it known that they were having to sell with deep discounts, so paying stamp duty and offering a cash back after completion was very common a few years ago. Work out how much interest you'd pay on the extra amount you'd be paying for the house over 30 years and then decide if its worth it.

The propery we are buying was on at £295 K. We first offered £245K which was refused and upped it to £249950 which was accepted. Had been on the market for a year though.

So...we've offered, and waiting to hear :)

What did you offer?

I'd rather not say just yet (getting paranoid they might be a MNetter!) but I suspect they'll reject it...