Stamp obligation: I avoided paying it

Robin Young confronted the agony many homebuyers expertise: his financial savings had been going to be swallowed by stamp obligation.

“We had £20,000 in financial savings  – sufficient for the £19,500 we would have liked to pay the 5% deposit on a £390,000 home in Banbury, Oxfordshire.

“But stamp obligation was going to be £9,500, which might have left us with solely £10,500 for the deposit.

“It seemed as if me and my girlfriend Agnieszka can be pressured to purchase a house someplace smaller and cheaper.”

Robin pushed his luck and saved £17,000 when he purchased his household dwelling

However, after setting their hearts on the four-bedroom new-build from Bovis Homes, they negotiated the property value in a deal that resulted in them paying not a single penny in stamp obligation.

“I had observed that new-build firms typically had affords for stamp obligation,” says Robin, 36. 

“I spoke to gross sales representatives at Taylor Wimpey and Barratt to see what they supplied. I was then ready to inform Bovis what their rivals had been prepared to pay.”

The couple went into their negotiations aiming not solely to get the £9,500 stamp obligation lined, however to have free carpets and tiling thrown in too.

“You usually should pay additional for flooring, which might add as much as hundreds of kilos.

“The Bovis gross sales individual mentioned she didn’t assume they’d have the ability to do it,” says the finance supervisor, who additionally runs a fitness center gear value comparability web site Fitness Savvy.  

After nervously ready for 3 days, the couple heard that Bovis had agreed to pay their stamp obligation and flooring prices.

“The solely phrases had been that we got here down that day to position the safety deposit of some hundred kilos – I raced there to make the fee. Not having to pay for flooring saved us £6,000 to £7,000.”

The couple’s fortunate streak continued in the course of the shopping for course of in December 2016 – this was earlier than the stamp obligation exemption was launched for first-time consumers.

“We weren’t supposed to have the ability to select the tiles and carpets, however once we went to talk with the gross sales agent in the course of the shopping for course of, she observed that no flooring had been chosen, and allow us to have our say proper there after which.”

What I did

I had been wanting on-line at new-build homes for a 12 months earlier than we had been capable of purchase a house. I truly took the digital tour of the Bovis dwelling we finally purchased however I wasn’t incomes wherever close to sufficient to afford it.
A promotion at work and a pay rise introduced my wage to the extent we would have liked, and as soon as we noticed the present dwelling itself we knew it was the home for us.
I spoke to gross sales reps at Taylor Wimpey and Barratt to see what they’d provide by way of extras and stamp obligation. Taylor Wimpey supplied flooring and Barratt supplied flooring and stamp obligation.
We determined to barter with Bovis on the stamp obligation and flooring. Within a number of days, we heard that we’d obtained them each. We then utilized for a mortgage.

What labored

Ambition! My accomplice and I had been eager to get a home that may in any other case have been outdoors our property value vary primarily based on the deposit we had. The authorities’s assist to purchase possession scheme allow us to do that.
The time of 12 months. A buddy instructed me that as we had been shopping for close to Christmas, and it was attending to the tip of the monetary 12 months when firms wish to bump up their figures, we must always actually push for as a lot as doable.
Going to different home builders first. Once I knew what Taylor Wimpey and Barratt would provide I was ready to barter extra successfully with Bovis.
Carpeting and tiling all through the property would have value £6,000-£7,000 so it was a pleasant quantity to avoid wasting.
Our son Charlie was solely eight months outdated once we moved in, so the financial savings we made ensured we had every little thing we would have liked for him, and allowed us to plan for our second little one, Leonardo, who was born in October 2018.

What didn’t work

Make positive you don’t log off any constructing snags – like cracked tiles, or poor paintwork – with the builder till every little thing is finished. These are typical on a brand new construct, and they are often fairly unhealthy; we had over 100 on our unique checklist. We had been pressured into signing off with a number of issues nonetheless excellent – reminiscent of cracked rendering on the surface of the home, a non-existent washing line and a few damaged tiles. Even although Bovis famous them down, it has nonetheless not sorted them out – and we’ve been right here three years! No matter how small the snag is, don’t log off on it till every little thing is accomplished. 

Important data

Some of the merchandise promoted are from our affiliate companions from whom we obtain compensation. While we intention to characteristic a number of the finest merchandise out there, we can’t overview each product in the marketplace.

Read extra

Leave a Reply