Can't complete before stamp duty holiday ends

[London1977]

Hi All, I've been in bits over this and just wondered if anyone else is in this situation. I am just about to complete on our new house, a wreck but it's all we can afford in our part of east London. We've had the inevitable delays along the chain, which has been chugging along since August, and now we await one set of searches and we're good to go at last! Except the local authority has severe delays on getting searches back and has said it will be 12 weeks.. this is due to the pandemic - lots of searches and very few staff members. They aren't accepting any fast track surveys.

Anyway I don't think we'll complete by end of March, and we can't afford to move if we have to pay the stamp duty - others in the chain below us are also in the same position.

I am currently begging my husband to beg the bank for more money.

Who knew it would be this hard to move from a flat to a house! X

Our local searches said 12 weeks
Lots of begging phone calls later and it took 1 so might be worth a shot

Why on earth has a local search only been requested now and not back in August?

Ask your solicitor if you can get search delay insurance. Some lenders will accept this if your searches are not back before exchange. We have used this for some clients in your position where some searches were taking four months.

You’re in Hackney aren’t you? We’ve just had this, moved within Hackney and our searches did take the full 12 weeks. We were told it was due to a computer hack not the pandemic and that nothing is running ie council tax changes etc. It’s the only council you can’t get a private search instead. Our sellers ended up getting indemnity insurance against the searches. The other alternative is to buy the searches from a previous failed purchase on the property, which is what we did, or buying the searches on a neighbouring property if one has sold within the last 6 months. It depends on what your mortgage co will allow - ours wouldn’t allow indemnity insurance but ours sellers would. Good luck!

We don't think we will make the stamp duty holiday either...if we don't somehow we're going to have to find the money xx

I really think the government need to extend the stamp duty deal especially as we are in another lockdown.
Maybe start a petition or bring it to the media's attention and the government might take note.

But where does it end if it is extended? There is always going to be someone saying I’m going to miss out isn’t there?
If you are buying a house in Hackney you must be paying above £600,000 so a £10,000 stamp duty saving, can you not add it to your mortgage? It won’t cost much more per month.

You can get no search insurance, ask the bank if they will accept it.

@roseyrose2020 there's already a petition that has gained over 100,000 signatures. We're like you OP but fortunately we have the funds to pay stamp duty. I do think the government will have to do something, so many chains will collapse. Probably including ours.

I just remembered: our solicitor did suggest putting something in the offer that if it didnt complete before stamp duty end then the seller would be liable to drop the price to reflect this. We didn't do it. But I'm just trying to think outside the box for you.

@Itscoldouthere

But where does it end if it is extended? There is always going to be someone saying I’m going to miss out isn’t there? If you are buying a house in Hackney you must be paying above £600,000 so a £10,000 stamp duty saving, can you not add it to your mortgage? It won’t cost much more per month.

It could end 6 months after Lockdown ends. It gives people more time to view, properties, arrange moving etc

[quote PurBal]@roseyrose2020 there's already a petition that has gained over 100,000 signatures. We're like you OP but fortunately we have the funds to pay stamp duty. I do think the government will have to do something, so many chains will collapse. Probably including ours.[/quote]
Do you have a link for the petition? I can't find it and would like to sign it.

Make sure your solicitor has checked if your lender will accept no search insurance, and also make sure agents are following up with any others in chain affected by the issue to make sure their solicitors are checking.

If your solicitor is on it they have already checked and established it won’t fly and that’s why they haven’t suggested it. However they may not be on it. It’s worth checking. First thing Monday.

The government have already rejected a petition for the holiday to be extended. Sunak so far has refused to budge on it. I really thought they would offer some kind of extension, even just on people who had already exchanged, but most financial journalists now seem to believe it’ll just end... and with Sunak under pressure to show how we’ll fund extended furlough etc, I can see why that might be the case.

Can you talk to your mortgage company about if they’d accept searches on a neighbouring property/from an old buyer/search insurance etc like a PP said?

I have a vested interest in it staying for as long as possible as I’m currently trying to buy, but I don’t think it’s the best use of government money and at some pint all this borrowed money will need to be paid back. Maybe I’m an old grinch but I don’t think the stamp duty saving is a make or break thing for many people, yes it’s kept the market alive, but it’s also inflated prices but if you are lucky enough to afford to buy I don’t think the loss of the stamp duty saving is going to stop many people from doing so.

We are currently in same position although our completion deadline was for a different reason. We got 'no search insurance's which our mortgage provider will accept. We asked the vendors for their past local searches (they moved in 2.5 years ago) for some slight reassurance, and check the planning portal for info to help reassure us that the local search wouldn't show anything concerning. Bit of a gamble still, but it depends what would put you off buying.

@lcdododo

Our local searches said 12 weeks Lots of begging phone calls later and it took 1 so might be worth a shot

Really? Ok I will try and beg again tomorrow!!

@Cdl84

We are currently in same position although our completion deadline was for a different reason. We got 'no search insurance's which our mortgage provider will accept. We asked the vendors for their past local searches (they moved in 2.5 years ago) for some slight reassurance, and check the planning portal for info to help reassure us that the local search wouldn't show anything concerning. Bit of a gamble still, but it depends what would put you off buying.

This is great advice - thank you - I'll look into this now x

@Itscoldouthere

I have a vested interest in it staying for as long as possible as I’m currently trying to buy, but I don’t think it’s the best use of government money and at some pint all this borrowed money will need to be paid back. Maybe I’m an old grinch but I don’t think the stamp duty saving is a make or break thing for many people, yes it’s kept the market alive, but it’s also inflated prices but if you are lucky enough to afford to buy I don’t think the loss of the stamp duty saving is going to stop many people from doing so.

I completely understand - although it has given me the chance to move from a flat to a house with the kids so it has really helped us x

@MrsGlitterSparklesHun

Why on earth has a local search only been requested now and not back in August?

It's because the solicitors (purple bricks recommended..say no more) said they applied for the search but it hadn't come back. They are not my solicitors by the way, they are the solicitors for the people buying our flat. They say they had to reapply for the search. Basically, they are blaming the third party they use for the search not coming back - the council said they did not receive a search request. They are appalling - DC Law...

[quote PurBal]@roseyrose2020 there's already a petition that has gained over 100,000 signatures. We're like you OP but fortunately we have the funds to pay stamp duty. I do think the government will have to do something, so many chains will collapse. Probably including ours.[/quote]
I've just signed this- thank you!

petition.parliament.uk/petitions/550545

I really thought they would offer some kind of extension, even just on people who had already exchanged, but most financial journalists now seem to believe it’ll just end... and with Sunak under pressure to show how we’ll fund extended furlough etc, I can see why that might be the case.

Agreed.

No search or delayed search indemnity insurance. That's what I am doing in Hackney where searches are problematic due to a cyber attack on the council as well as covid.

It's not expensive. Solicitors need to check if mortgage company will accept

I feel for you OP. It must be really stressful. So thankful that here in Scotland, searches are through within 48 hours and then you submit an update about a week before and the update comes through on settlement date.

Any chain involving DC Law seems destined to break down at some point. Offers using them should be rejected out of hand!