stamp duty / bridging

[scomp74]

Hi All,

Appologies if this has been answered elsewhere (I tried looking, but didn't find).

I'm in the process of trading up, and have had my offer on the new property accepted. My own house isn't ready to go on the market for a few weeks (legal issues). I am mortgage approved on the new house for 100% mortgage, but will have to pay around 30 grand stamp duty.

What are my options for financing the stamp duty until my own house sells given that i'll be sale agreed this week on the new property, but not in a position to put the old one on the market for 4-6 weeks.

Cheers

 

[redstar]

The Stamp Duty is not due until after closing, when the full purchase amount has been paid. I would imagine that you will pay for the new house with
mortgage + your old house proceeds - stampduty

You will have sold your old house by then. I'm puzzled, though, you say you have 100% mortgage approved ? Are you not using your old house proceeds to part-pay for the new one ?

 

[scomp74]

Hi Redstar,

Actually, no, there's not much equity on the old house - just enough to pay the stamp duty on the new plus a little left over, so i got 100% finance on the new house. I'll probably barely have time to get the old house on the market before closing on the new.

 

[redstar]

As far as I'm aware u can't borrow for Stamp Duty (i'm open to correction, of course, by legal/financial experts out there !)