Monday, May 09, 2005

Expensive Stamps ...

We found out today that our offer to buy our rented house has been accepted :0) So this evening I instructed our solicitors to do the undefined stuff that they do (apparently it is quite hard judging by how much they are charging us). I also instructed our IFA to proceed with our mortgage application (apparently this is quite hard too judging by how much they are charging us). We also had to sort out a survey and valuation for the mortgage vendor and a Home Buyers survey for ourselves. Having lived here for two year it is clearly worth our money to find out where the local schools are and what the amenities are (apparently this is quite hard judging by how much they are charging us). And we haven't even started on home insurance or life insurance, but I'm guessing that they won't be applying for charitable status any time soon either :0(

And I thought that the house was going to be the expensive thing!

Still, we are very chuffed that thing seem to be going in the right direction. Even though it seems that we have secured the house, and the Estate Agent has told us the property is now off the market, we haven't put the Champagne on ice yet. We will only be quaffing the bubbly stuff when we Complete. And that could be a while away. But everything seems to be pointing in the right direction.

I should say, none of this would be possible if my Mum and Dad hadn't agreed to help us out with the Stamp Duty. Giving the government just over £10,000 seems a bit steep. Is it just me or aren't those pretty bloomin' expensive stamps? It's not like they have pretty pictures and a handy collectors pack. ..


Darren said...

Stamp duty is a disgrace. If any other company in any other sector charged you a vast amount of money for absolutely no reason whatsoever other than to squeeze money out of you, the Government would have something to say about it. But this is effectively the Government robbing you with you getting nothing for it.

Mortgages are a con as well... I remember having a conversation with my first mortgage lender and their reply was something to the effect of "I can assure you Mr Adams, we're not running a racket". So what's the issue? You borrow some money, and on the day they actually give you the money they want some of it back. It's like you want to borrow £10 off me cos you need £10. So I say "okay Ports, but you have to pay me £11 back in total cos of interest". That's fine. So I give you £10 but then say "I want the first £1 back now". Your reply is "but I need £10 right now, and now I've only got £9". The answer is to borrow £11, give me the first £1 back immediately, and then you'll have the £10 you need. The problem is that now because of the increased loan you now have to pay me back even more interest. It's the same with a mortgage... if you didn't have to make the first payment of, say, £800 on the first day, you'd actually have to borrow £800 less.

Mr Ports said...

Strewth, I wish it was only £800 :-(

Tony C said...

Stamp duty was invented by the Dutch in 1624 and first levied in the UK in 1694. It was so successful that it remained, even when its imposition caused riots in the American colonies during 1765.

Stamp duty is payable on documents which transfer ownership of an asset (e.g. on the sale of a house or disposal of shares). It is also payable on the grant of a lease.

For 1999/2000 stamp duty paid totalled £3.7 billion. It is the oldest tax administered by the Inland Revenue.

So stamp duty is in effect a 'moving tax' nothing more, nothing less. And as Daz points out a disgrace. Any tax dating from 1694 probably needs reviewing about now. :o|

Anonymous said...

Thanks Tony C, I was waiting for somebody to blame Tony Blair for a minute!

Good luck on the purchase Ports and do ensure you won't have to move out in the period between the end of the lease and the completion. I actually lived in my house for free in that situation AND still got my deposit back in the end. Result....paid my first month's mortgage.


Tony C said...

I'm not sure I blamed Tony Blair. He hasn't been PM since 1694. :o)