UK Landlord Forum / Life

Hi everyone, thanks in advance. my tenants want to purchase our buy to let property . after a recent visit to our financial adviser they stated that the tenants were looking at a no deposit mortgage and that the halifax was the only lender available to help the tenants. two things I'm enquiring are there any other tenant mortgages available and it was highlighted that within the halifax terms and conditions that the tenants would be entitled to a 10% concession of asking price eg asking price 125k would automatic be 112500. I did ask if F.A if we were to ask 132k therefore getting 120k, however it was advised that this would not be feasible as it would bring stamp duty in to play. I'm a bit confused as i thought stamp duty started at 125k. Can someone help, thanks.

Thats because it sounds to me like your FA is acting on behalf of the tenant as well.

If you paid £125,000 then you report to land registry that is what you got for the house, and no stamp duty is payable.

Your FA is keeping something back, not giving you all the facts, or just talking out his arse, tell him to Jog on and find someone else. Or just tell him the number you want net of all fees.

The mortgage your tenant gets, and what you are willing to accept to sell it are two independent variables, only one of which you have any control over what so ever.

Quote from: bcool on March 18, 2014, 08:27:39 AM
ask 132k.................120k -  i thought stamp duty started at 125k.

It does.  Unsurprisingly 132k is higher than 125K so stamp duty is payable by the purchaser.

Sounds to me you haven't got your head around what a vendor gifted deposit is (which is what you are doing)

Normal Purchase.

You sell for £132k - you get £132k - Purchaser has put X amount deposit down - you get £132k in your hand (SDLT Payable)

Your Purchase

You sell for £132k - Purchaser puts no deposit down, instead he's being gifted the deposit of 10% from you.  Meaning you get £123k, the purchaser gets a 123k mortgage and SDLT is still payable.

Well I never heard of that.

http://forums.moneysavingexpert.com/showthread.php?t=4610587


Some comments here support my naive assertion it is bollocks......., and Martin Lewis is like so totally clever and that....


And according to this Halifax stopped doing it in 2011,

http://www.ftadviser.com/2011/10/25/mortgages/vendor-gifted-deposits-Gv8CMzFwXQvoyGJPMa984I/article.html

Are you sure they are not all pulling your chain??

thank you everyone for your information and advice, I had a feeling that the F.A may have had some allegiance to the Halifax. i'm still a bit uncertain of the legality of vendor gifted deposit or indeed if there are any products available at this present time. I think for now I will wait until the buyer has a deposit and can obtain a product that benefits both the tenant and I. thank you