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Clare
Clare, Solicitor
Category: UK Property Law
Satisfied Customers: 34105
Experience:  25 years exeperience
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I am try to purchase a property. The asking price is

Customer Question

I am try to purchase a property. The asking price is £280,000, cash only. I don't have £280,000 cash but the estate agent manage to get me a deal as follows: The vendor has confirmed that all transactions will be via his Solictor, and from my Solicitor
to his Solicitor. The Contract price £230,000 and £50,000 balance paid through solicitor. My question is 1) The selling price is £230,000 so the vendor will escape some tax. is it legal to do that? 2) I want to buy the property but I don't want to lose £50,000
cash. Even the vendor agree all transactions are going through solictors, is it safe for me to do that? Can you think of any suitations that i should be aware?
Submitted: 1 year ago.
Category: UK Property Law
Expert:  Thomas Judge replied 1 year ago.

With respect to your questions - you should be paying stamp duty on £280k - I would have concerns as to the process as you are suggesting - what has your solicitor said with regard to this?

Customer: replied 1 year ago.
I haven't found any.
Expert:  Thomas Judge replied 1 year ago.

Have you not found a solicitor? Why not?

Customer: replied 1 year ago.
The estate agent confirmed the deal yesterday. I am asking you as solicitor today.
Expert:  Thomas Judge replied 1 year ago.

You will need to instruct a conveyancing solicitor tomorrow to act for you - I would have grave concerns about buying a property unless it has been checked out fully and the correct price is listed as the purchase price. Happy to discuss.Please rate positive

Customer: replied 1 year ago.
you haven't answered my questions?
Customer: replied 1 year ago.
I knew I will have to find a conveyancing solicitor, so I don't see how your answer helping me.
Customer: replied 1 year ago.
I asked you two questions and you replied by telling me I need to find a conveyancing solicitor.
Expert:  Thomas Judge replied 1 year ago.

Sorry If I have not answered - let me be more specific

1. The seller would only be avoiding tax if he did not declare the value of the property sold - this would not be legal. Unless it is a buy to let he would not be paying CGT. You would be the person avoiding paying tax - because of the stamp duty - that is not legal and you would be breaking the law.

2. I would have concerns from what you have written about this transaction - such a big figure of £50,000 not being properly declared makes me exceptionally nervous that something may not be above board. Hence why a solicitor acting for you would need to go through it line by line.

I hope that this answers you questions - please rate positive

Customer: replied 1 year ago.
you said ' .... Unless it is a buy to let he would not be paying CGT. ...' that is not true. According to the following govenment website, he has to pay CGT even his property is buy to let. ( https://www.gov.uk/tax-sell-property/what-you-pay-it-on ).you still hasn't anwered by second question.
Expert:  Thomas Judge replied 1 year ago.

You have misunderstood what I have said - I stated unless it is a buy to let he would not be paying CGT - that means grammatically if it is a buy to let he has to pay CGT. I have answered your second question.

Customer: replied 1 year ago.
it is a buy to let he has to pay CGT ... ' implies not buy to let, he do not has to pay CGT. That is rubbish too.you have not answer my question. read it again!
Expert:  Thomas Judge replied 1 year ago.

I am not prepared to help you any more.

Expert:  Clare replied 1 year ago.

Hi

Thank you for your question

I am a little confused by the details as it seems that you will still be paying £280,000 - could you explain a little more about how the deal is meant to work

Customer: replied 1 year ago.
The deal isThe vendor has confirmed that all transactions will be via his Solictor, and from my Solicitor to his Solicitor. The Contract price £230,000 and £50,000 balance paid through solicitor.That is what they give me. My understand is contract price £230,000 pay by mortgage and then I pay extra £50,000 in cash.
Expert:  Clare replied 1 year ago.

Right so it is not a Cash Purchase

How much are you borrowing on mortgage?

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