Condition Issues in Stamp Duty Reclaims: Building a Strong Case

Navigating the realms of stamp duty reclaims, particularly when arguing the inhabitability of a property at the time of purchase, is a nuanced task. In this article, we'll explore various condition issues and the importance of evidence, aiming to empower property investors with knowledge and insight.

Identifying Condition Issues:

When scrutinising a property's livability, we encounter a spectrum of condition issues ranging from toxic mould, damp, wood rot, to insecure doors. The presence of these issues raises significant questions about whether a property is fit for habitation.

The Homes (Fitness for Human Habitation) Act 2018:

This Act provides a valuable foundation for assessing property conditions. The government guidance outlines clear standards, categorizing various condition issues that can render a property uninhabitable. These guidelines are instrumental in determining the severity of each issue and their cumulative impact on a property’s livability.

Categorizing Issues by Severity:

In building a case, we meticulously categorize each issue by severity and type. A five-star issue, for instance, holds significant weight, while a one-star issue is less impactful. The strategy is to compile as many condition issues as possible, akin to a point-scoring system, where multiple minor issues collectively strengthen the case. Examples include worn carpets, cracked windows, unmodernized states, loose bricks, and malfunctioning lavatories.

The Importance of Strong Evidence:

Evidence is the cornerstone of any successful claim. Property surveys conducted at the time of purchase by independent third parties hold substantial authority. Photographic evidence depicting condition issues is also valuable, albeit less authoritative than surveys. However, around 25% of potential claimants often lack sufficient evidence. In such scenarios, property listings from platforms like Zoopla or Rightmove can provide historical images, aiding in building a solid case. Approximately 50% of cases benefit from such alternative evidence sources.

Conclusion:

The trajectory of a stamp duty reclaim hinges on the quality of the evidence presented And the severity of the condition issue. A robust case showcasing a property’s uninhabitability at the time of purchase substantially increases the likelihood of a successful reclaim from HMRC for overpaid stamp duty. By being diligent, strategic, and informed, claimants can navigate this intricate process and ensure that they are rightfully reimbursed.

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