House prices and stamp duty

[Gros]

Hi all.

We currently have a flat, which last summer when things were at their peak reached a healthy value of around £280k. With the current drop in prices (though I haven't had it valued yet) I would estimate the value at around £265k.

We want to move on and find ourselves a house. However, with the stamp duty bracket being £250k, does that completely screw us over when trying to sell? I'm assuming that no one is going to offer more than £250k - which effectively reduces the value of our place by around £10-15k.

Does anyone have any experience with this, is that the case? Is there anything I can do about it?

I was wondering if you could tempt buyers into buying at £250k, but making a private payment to us of £10k - so we still get what we feel is right for the property, but they still benefit from paying the lower stamp duty threshold. But something tells me that this is going to be illegal?!

I suppose in some ways, we have to hope that the market continues to plummet, meaning that the true value of our property lowers to £250k, and of course the value of our potential new house will be lower too.

Tricky one...

[moorfield]

You sellers haven't twigged yet have you? Try dropping your price to £225k.

[DS23]

you'll be lucky to get that.

[TykeMerc]

Attempting to fiddle Stamp Duty would be extremely unwise, there could be charges of Tax Fraud and Conspiracy.

[wonderwaif]

"I was wondering if you could tempt buyers into buying at £250k, but making a private payment to us of £10k - so we still get what we feel is right for the property, but they still benefit from paying the lower stamp duty threshold. But something tells me that this is going to be illegal?!"

Withholding cash from El Gordo is the worst crime you can possibly commit. That's why we have to let murderers out of jail early, so we always have room to lock up grannies who don't pay their council tax.

[Pondlife]

Sell them the house for £250K and then sell them the carpet for £10K.

Not sure how dodgy this is though.

[Xenophon]

Wilmslow might be able to help. He buys houses in your sort of price range.

[Pickle2]

So you still think its "worth" only 5% less than the peak of the madness last summer? Dream on sunshine. And yes, for what its worth, this is how the stamp duty threshold plays out, it tends to introduce a step into the price distribution. But if you can get 249,950 for it, i would thank your lucky stars and get shot of the flat asap.

[foritisme]

Offer to pay the stamp duty - simple really

[DimPrawn]

According to the latest figures, flats have fallen in price 3.6% in one single month.

http://www.ftadviser.com/FTAdviser/M...use-prices.jsp

Just wait a wee while and it will be well into the zero rate band.

HTH