Originally Posted by St3v3 C
Nearly you will have to pay £1265. (1% of the whole sale amount) This change in the rules will not affect you. Unless, as said above, you can get the seller to agree to take less for the house and you make up the difference in cash, to bring your buying price below the £120k threshold.
Careful though, as you might have issues with your lender, as they will now be lending you money against a house that is worth less (in their eyes) than they originally thought.
It will definitley cause issues with the lender as you would be getting it at a discounted price... and the Insolvency Act would come into play, which was introduced to stop people who are going bankrupt transfering the property to others (such as friends/family) for almost nothing - it means that should the seller go bankrupt in the next few years their creditors would have a right to claim their debt against your property.
You can get insurance around this but might not be worth the hassle.
Also of what benefit to the seller is this? They risk not getting the balance cos you could say 'get stuffed' afterwards.
And the Valuation Office could well notice an undervalue in property (and will probably be on the look out for this situation now) and you will end up paying it in the end
- Sorry
