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Original poster

Offer at stamp duty threshold rejected - want £2.5k more

25 replies

Innat · 16/04/2009 20:43

We just offered £175k on a house (our third and final offer). Agent came back and said buyer will accept 177.500. however this will put us over the stamp duty threshold and mean we will need to pay an extra 2k in stamp duty.

We know the house has at least 3 beneficiaries so surely an extra £2.5k split 3 ways isn't going to make any difference to them...

any advice on what to do?

OP posts:

cornsilk · 16/04/2009 20:44

Stay firm on your offer and make it clear you won't raise it.

MaryMotherOfCheeses · 16/04/2009 20:46

I think they've got a bloomin cheek and given the current market I'd let them stew for a bit.

People should know about stamp duty limits.

Littlefish · 16/04/2009 20:46

If you think it's going to be a deal breaker, offer them the additional in Fixtures and fittings - ie. offer them £175K for the house plus 2.5k in fixtures and fittings.

pcworld · 16/04/2009 20:47

Agree with cornsilk. I think the vendor is being unreasonable.

Heated · 16/04/2009 20:48

Stay firm. Inform vendor via EA you will not be going above the stamp duty limit.

Original poster

Innat · 16/04/2009 20:48

Yes that's my gut feeling - think they had previous offers of around £180k (that fell through) and are trying to get a bit more. Do youthink it's valid to say it's because of the stamp duty threshold - we think some of the sellers are abroad so may not be aware of it.

OP posts:

Original poster

Innat · 16/04/2009 20:50

little fish - i wondered about the same thing re offering some cash for fixtures etc but there's nothing in the house that we could pay for!! no kitchen, not really a bathroom that's usuable!

OP posts:

Littlefish · 16/04/2009 20:51

It doesn't really matter whether there's nothing that you want. If you are going to lose the house without it, you just pay 2.5k for a curtain pole!

Original poster

Innat · 16/04/2009 20:54

at £2.5k curtain pole! i don't think we will lose it at this stage. no other interest as far as we know. we went to the property at w/e and there was loads of post onthe floor so don't think there has even been any viewings recently.

OP posts:

MaryMotherOfCheeses · 16/04/2009 20:57

Deffo stick at where you are then.

jeee · 16/04/2009 20:59

Er, a £2.5K curtain pole could certainly raise a few eyebrows with the Inland Revenue. They're not keen on that kind of thing. But certainly make sure the vendors are aware of the stamp duty threshold - because it's going to be a sticking point with everybody.

MuffinBaker · 16/04/2009 21:00

Give in on this and then there will be something else

Littlefish · 16/04/2009 21:03

Their estate agent should be advising them about the stamp duty thresholds and the impact of going above it.

Stick to your guns!

Original poster

Innat · 16/04/2009 21:03

Thanks - will get back to agent tomorrow and say we won't be raising our offer above the threshold....eeeek i hope they accept.

Hmmm jeee, think you're right, and i think i would feel a bit uncomfortable about being so obviously dodging the stamp duty!

OP posts:

Fizzylemonade · 16/04/2009 21:16

Re the stamp duty "2.5k for fixtures and fittings" it is TAX AVOIDANCE!!!

HMRC take a very dim view of this and all transactions are looked at for this very thing. Think now as the government hasn't really raised stamp duty (apart from this temporary 150 - 175k) they require a massive list of what you are buying for your £2.5k.

I would hold out at £175k because no one in their right mind would pay £2.5k over the stamp duty threshold and then pay another £1775 for stamp duty on top.

lalalonglegs · 16/04/2009 21:19

It would be really obvious - the Inland Revenue have specifically said that they will be examining all fixtures and fittings payments that are close to stamp duty threshold so they would be all over you if you did this.

I can't believe a vendor would be prepared to walk away from a sale for £2.5k (which is less than 1.5%) especially on a house that sounds pretty wrecked anyway. If they have any sense, they'll be back in touch.

pscc · 16/04/2009 21:22

doing anything through fixtures and fittings is very difficult nowadays- the law has changed and made this very difficult!
We sre in the position as vendors and are realistic in that people wont pay above the stamp duty- dont raise it as if they serious they should accept you offer. Otherwise they will never sell- especially in the current climate.

IwishIwasmoreorganised · 16/04/2009 21:23

I would hold out but spell out to them that it is because of the stamp duty threshold that you are not willing to increase your offer.

Good luck!

Sorrento · 16/04/2009 22:52

I cannot believe the estate agent hasn't told them about the threshold and given them a slap with a wet kipper.
Stand firm, bloody ejits

PortAndLemon · 16/04/2009 23:12

No one else is going to make an offer over stamp duty threshold -- especially not in the current climate, but that was a reasonable assumption for property priced near the threshold even when things were more buoyant. Tell them to bugger off take a hike reconsider their position as you have made your final offer. And suggest to the estate agent that he/she explains the stamp duty threshold to them in very short words with lots of hand gestures...

pop1973 · 17/04/2009 11:16

Are you in a good position yourself ? i.e. have you anything to sell ? If you haven't then I would state to the agent that this is your final offer. You won't be paying any more and you will leave the offer on the table for 2 weeks to let them think about it.

If they are considering this offer, then just walk away. We had this problem last year, turned out the people only just sold the property a few weeks ago and had to take a £25,000 offer less than what we offered a year ago.

Some people are just greedy and always want a bit more. You will have to be prepared to just walk away. If it is on the market in the future then you can also re-offer and they will probably snap your offer up.

Original poster

Innat · 17/04/2009 16:05

Thanks for all your comments.

I think we would be on very dodgy territory re fixtures and fittings - as there aren't any! Don't think we will be going down this route.

Sorrento you're right, called agent today and they hadn't told seller about the stamp duty threshold so is now going to get back to them and explain. So hopefully they'll accept.

We are in a good position - will take out second mortgage so essentially cash buyers (would need to stay where we are whilst work is done on it).

OP posts:

expatinscotland · 17/04/2009 16:09

'Do youthink it's valid to say it's because of the stamp duty threshold - we think some of the sellers are abroad so may not be aware of it. '

I think it's entirely valid to stay way.

I'd hold firm, too. They want you to basically pay almost £4k more so they can pocket £2.5K.

Nope.

Original poster

Innat · 22/04/2009 19:56

just wanted to say a big thanks to everyone. took your advice and held tight and our offer has been accepted - yippee!! now comes the hard work of renovating...!

OP posts:

lalalonglegs · 22/04/2009 20:31

Hooray!

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