Dilemma-Go through with house purchase or not with budget looming?

M

maria1

Guest
We were thrilled our offer was accepted on a second hand house on the 3rd of sept and we paid a refundable deposit to the auctioneer the same day. We are not first time buyers.The next day on the news we heard the budget was being brought forward and that stamp duty might be reduced. We are in a dilemma now,do we hold off signing the contracts (ready to be signed in a week or two) untill the budget comes out and risk the owners selling to somebody else as nothing is binding untill we sign or do we just sign as people are saying the government are only making changes for first time buyers and we won't be affected? I know nobody has the answer but am wondering would anybody have any advice if they were in our situation.
 
A friend of mine is in a similar position and is looking to extend the closing date til after the budget, owners may be annoyed but not many will have someone else there to buy and Id say will wait the extra few weeks
 
I wouldn't lose the house over it but there is no harm trying I suppose. The soundings coming from the government though is that there is unlikely to be major reform on things like stamp duty. I think they have accepted that house prices need to correct themselves. I am sure people will disagree with me though and think the government will cut stamp duty so it's your call.
 
I would think if anything is going to happen it will be for 1st time buyers but just extend closing till after budget just in case.
 
If the last change in stamp duty is anything to go by the government will probably give a cut off date of a few months back. e.g the new law will apply to deeds executed on or after 30th June 2008.
 
maria1 said:
...... that stamp duty might be reduced (for NonFTB)
......the owners selling to somebody else
........ contracts ready to be signed in a week or two
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All of the above and unlikely to happen especially the last one - although conveyancing isn't keeping any solicitors late in the office these days.
 
I don't think they will cut stamp duty rates. It made no real difference when they abolished stamp duty for FTBs. Maybe you could raise your concerns with the Auctioneer and ask if they will consider extending the date for signing contracts.
 
maria1 said:
We were thrilled our offer was accepted on a second hand house on the 3rd of sept and we paid a refundable deposit to the auctioneer the same day. We are not first time buyers.The next day on the news we heard the budget was being brought forward and that stamp duty might be reduced. We are in a dilemma now,do we hold off signing the contracts (ready to be signed in a week or two) untill the budget comes out and risk the owners selling to somebody else as nothing is binding untill we sign or do we just sign as people are saying the government are only making changes for first time buyers and we won't be affected? I know nobody has the answer but am wondering would anybody have any advice if they were in our situation.
Click to expand...

When a solicitor tells you something will be ready in "a week or two" you can usually triple it. So i doubt you will have the contracts before the budget anyway. If they arrive slightly early, then just get your solicitor to throw up a few queries which will delay another couple of weeks. They are not going to find another buyer because of a delay of a couple of weeks.
 
NorfBank said:
If the last change in stamp duty is anything to go by the government will probably give a cut off date of a few months back. e.g the new law will apply to deeds executed on or after 30th June 2008.
Click to expand...
Eh the last time they changed the stamp duty end of April and only backdated to end of March - 1mth!!
 
Last time they changed the SD was in Dec 2007 budget and they backdated it 30 or 31 days (forget exactly which). There's a legal reason why they had to do this. Something to do with solicitors having 30 or 31 days to register a title for stamping from date of closing of sale. So I'd say if you hold out till about 18 Sept, you should be in line for any SD reduction which might be introduced in the budget

For what it's worth, I don't think there'll be any reduction.
 
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