Cost of title deeds

[Kate]

Hi Nigel,
I read recently that the LR had assessed several properties at a much higher price than that on the sales contract, meaning that transfer fees were much greater than buyers were expecting to pay when obtaining title deeds. The same article also quoted a well known local lawyer as saying ''I explain to buyers carefully that transfer tax is payable on the value of the property at the date of purchase, not the sale price, and the Land Registry may set a higher value than the purchase price.”
So, to my question - our development has seven houses, all sold within a few months in 2006. The market was fairly buoyant at the time, so the builder increased the price on a monthly basis, meaning a price difference of CY£50,000 between the first and last purchase. Are we likely to pay transfer tax based on our sales contracts or could they just assess all the properties as the same?
I know that the LR have always stated that they look at similar local property values built in the same year if they suspect any dubious deals, but never heard of it being fine tuned down to a specific month.
Any ideas, or have I just asked a 'how long's a piece of string' question?

Kate
BTW our builder is great and the process is in motion, but a few years to go yet!

[Nigel Howarth]

Dear Kate

I'm afraid that I can't answer your question.

When the Title Deeds are ready you visit the Land Registry, they have a 'Valuations Desk' that assesses the market value of the property when you bought it. I believe they maintain a set of market values based on the values of different types/sizes of properties in different areas (this information is not available to the general public).

I would hope that the Land Registry would assess market values every month, but I really cannot say.

Regards,