Mortgage / Stamp Duty Scam

[Sebastian Terrier]

A young man came to me last night: for advice.

He told me of a house he would like to but.

It's asking price is slightly above the 317.5 K threshold. How would he buy it for less that that (thus saving stamp duty) but still mortgage for more, enabling him to strike a cash balance with vendor on the rest - say 25 K.

Is this possible? Getting a mortgage for 340 K + but putting the sale price down as 317.5 K and paying the rest 'under the table'.

St.

 

[goosed]

yes its possible - need to have a helpful solicitor on both sides though

 

[Paddy Wagon]

The handiest would be if the Vendor & Purchasor used the same solicitor, and have the sale price agreed with the Auctioneer @ €317,500, the rest of the money is then used to buy ''Furniture & Contents''
Need an understanding Auctioneer aswell though cos he/she not going to get the same commission as they would if the house sells for below market value on paper..

 

[Sebastian Terrier]

Thanks for this.

Does the bank not have a valuation involved?

Ie: Will it say 'bought at 317 K' but worth 340 K somewhere?

St

 

[Paddy Wagon]

They do but the bank valuers job is just to inform the bank whether the property is worth the sale price, and Im sure a house worth...
Oh I get ya now, that could be tricky I thought you meant the purchaser had the cash himself.. If its the case where he is using the banks dosh under the table he hasnt much of a hope really the bank will want to know whats happening with evry cent they give him..

 

[Sebastian Terrier]

Cheers anyway. Cool and the gang.

I'll inform the young man later, when he comes to me...

St.

 

[jhegarty]

A young man came to me last night: for advice.

He told me of a house he would like to but.

It's asking price is slightly above the 317.5 K threshold. How would he buy it for less that that (thus saving stamp duty) but still mortgage for more, enabling him to strike a cash balance with vendor on the rest - say 25 K.

Is this possible? Getting a mortgage for 340 K + but putting the sale price down as 317.5 K and paying the rest 'under the table'.

St.

one thing to watch for is that the bank will only give the lower of the valuation or sale price...

so a 100% mortgage will give him €317.5k , and he will have to save/steal/borrow the rest...