Blogger
Share this content
0
3
1384

Stamp Duty??????

Good morning

Can anyone give any advice?

We are looking to purchase our parents house as they have moved abroad. The house is currently on the market valued at £370000 and hoping to achieve £360000. They have kindly said to us to help us get onto the ladder they would let us have it at £280000 (early inheritance as they are only early 50s we are hoping to get away with the 7yrs so no tax to pay on the gift) If we have to get a mortgage for £280000 and the other £80000 is classed as a deposit no monies exhanged are we right to assume that the LTV is around 75% to 25%? Also if it is done this way how much would we have to pay in SDLT will it be 3% of the £360000 or 3% of the £280000? This is all very confusing, we would just like some kind of knowledge before we go to a mortgage advisor.

Thank you

Replies

Please login or register to join the discussion.

Stamp duty land tax will be charged on the transfer of the property from your parents to yourselves, based upon the consideration that you pay them i.e £280,000.

the 3% will therefore be charged on the £280,000.

The LTV is based upon the loan ie £280,000 and the value of the property £360,000. i.e 77.7%.

 

Thanks (1)

By using the gift as our deposit does this not mean that to get the LTV we would have to say that the purchase price is £360000 thus paying the 3% stamp duty on that and not on the actual mortgage of £280000. We dont want to have to pay anymore deposit than the gift you see, but unsure if this means to get the LTV we have to state that the purchase price is £360000 and pay 3% on that.

Does this make sense?

Thanks (0)

The mortgage comany will calcuate the LTV on their valutation i.e £360k

Thanks (0)