How is Stamp Duty calculated

[boe]

Is stamp duty calculated based on the purchase price or based on the value provided in the valuation report submitted to the bank?

I have just purchased a property and the valuation report has valued the property as €15k more than what I paid.

Thanks

 

[mf1]

Is stamp duty calculated based on the purchase price or based on the value provided in the valuation report submitted to the bank?

I have just purchased a property and the valuation report has valued the property as €15k more than what I paid.

Thanks

Well thats an interesting one!

My first reaction was just go with the sale price - that is market value. But then I thought if Bank valuer is valuing it higher, then the Bank may require that the Deed is stamped on the higher value - it would be an additional €1120.00.

I think I'd keep quiet and hope to go with the sale price.

mf

 

[WaterSprite]

It's based on purchase price, so long as that's not less than market value. I don't think a 15% difference means that the bank valuation (which in my experience, can be generous) reflects actual market value.

 

[boe]

Thanks mf

I didn't think anything of it at the time but am worried it will cost me now. The stamp duty is paid to the solicitor, is that correct? My solicitor wouldn't even have seen the valuation report provided to the bank so if thats the case I should be ok.

 

[boe]

It's based on purchase price, so long as that's not less than market value. I don't think a 15% difference means that the bank valuation (which in my experience, can be generous) reflects actual market value.

Great, thanks.

 

[NorfBank]

I have just purchased a property and the valuation report has valued the property as €15k more than what I paid.

Hope NAMA don't give this valuer a job.

Off topic I know but if a valuer can get one residential property valuation wrong when there is a contract price to compare against, it makes you wonder how valuers are going to value scrub, I mean development land.

 

[boe]

I suppose what it comes down is the fact that the bank will accept a valuation report from a surveyor, engineer, auctioneer or basically anyone who has anything to do with the property game.

In my case, it was the engineer who did my survey who filled in the valuation report for the bank for me. It made no difference to me what he valued it at as long as it was more than I was borrowing which is all the bank were looking for.

I think it should be the bank itself which does the valuation, otherwise its meaningless really.

 

[NorfBank]

What bank was this?

Most lenders have a panel of qualified valuers and they will only accept a valuation from this group.

 

[boe]

What bank was this?

Most lenders have a panel of qualified valuers and they will only accept a valuation from this group.

It was AIB, they'd accept a valuation report from say an engineer as long as they were accredited to the IEI or an equivalent body. It's the same for surveyors etc, as long as they are affiliated to the appropriate organisation then you can use them

 

[NorfBank]

It was AIB, they'd accept a valuation report from say an engineer as long as they were accredited to the IEI or an equivalent body. It's the same for surveyors etc, as long as they are affiliated to the appropriate organisation then you can use them

I thought a pre requisite for an AIB valuer was professional indemnity insurance but I could be wrong.

Even so an accredited engineer or surveyor is a bit removed from "basically anyone who has anything to do with the property game"

 

[boe]

I thought a pre requisite for an AIB valuer was professional indemnity insurance but I could be wrong.

Even so an accredited engineer or surveyor is a bit removed from "basically anyone who has anything to do with the property game"

I used that quite loosely as it was a pretty long list of people that they would accept the valuation from!

Not sure about indemnity insurance but have a copy of the forms at home so will have a look this evening to see if its mentioned. Our engineer was happy enough to fill it out so it saved me the hassle of getting another auctioneer to do it.