Stamp duty

[feraldiggy]

I know this is a ridiculous post and I'm hugely clutching at straws but we're finally in a position to buy a home and I've seen the perfect house. We're the first out of 26 viewings and I appreciate it will probably go to best and final offers and go over our budget so likely this is irrelevant. However...

We have the deposit for what it's up at now, plus about an extra 5k but I think stamp duty will be approx 8/9k.

Is it stupid to look for ways to pay the stamp duty late? I know they'll be penalties etc.

Has anyone done this?

To be honest, I don't know about penalties, but in order to complete, we had to transfer all funds including stamp duty to solicitor the week before. I can't imagine a solicitor doing due diligence would allow a completion to go through if funds weren't there. I would probably aim to either save up in the intervening months or ask family perhaps if you could borrow funds specifically for stamp duty (rather than purchase).

Don't forget you also will need to pay solicitor's fees, for searches, etc., which came to an additional £3000 for us, I think.

Sale can't go through without it.

It doesn't work like that. You pay it upfront in order to complete.

You can't pay the stamp duty late, the solicitor will need all monies on account before completion.

I'd be looking for something more in budget, allowing for stamp duty, fees, disbursements and a small contingency.

Yeah all money ( stamp duty, deposit and solicitor fees) went to solicitor before exchange.
We were short about 2 thousand on the stamp duty and used my overdraft but my partner bonus came in 6 weeks later so we knew we could pay it off pretty soon.

You won’t be able to complete without it. Sounds like you can’t afford that property

If you were a cash buyer then you could possibly be able to do this (although the money laundering office at your solicitor might well query it if you tell them that you are not going to pay the tax in time). But if you are buying with a mortgage, your solicitor will also be working for the bank. They won't allow exchange without having the SDLT money confirmed, as the purchase cannot be registered at the Land Registry until the SDLT has been paid, and delayed registration gives the bank additional risks in terms of its security for the loan.

Are you a first time buyer? If so, I think you'd be exempt.
If not a FTB, you will need to give the money to the solicitor before the transaction completes.

Solicitor will require the stamp duty, deposit prior to exchange, you can’t choose to defer it. Are you certain the amount of stamp duty is correct, it varies greatly on the purchase price and the circumstances of the buyer. Good luck.

Yeah it doesn’t work like that, you need it all up front. Don’t forget solicitors/moving costs too

A couple of people on here are saying you need to pay the SD & solicitor before exchanging, I am sure they mean completing.
There was a 9-month gap between us exchanging and completing (new build) but all we paid to exchange was our 10% deposit and a nominal sum to the solicitor, all remaining monies (balance of purchase, SD & solicitor costs) were paid the week of completion.

Thank you all.

MIL is solicitor and did advise we need it up front and although she's not charging us fees she can't exchange without it. I was just exploring avenues before I go cap in hand to my parents.

We've had buy to let's before but this would be our first home to live in as previously rented if that makes sense.

Ideally you should look under budget to allow for all costs

Ideally...that was the plan