Hello & Eleonas Gardens in Sotira

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AmyD33
Posts: 1
Joined: 11 Apr 2018 12:30

Hello & Eleonas Gardens in Sotira

Post by AmyD33 »

Hi Everyone
Thankyou for taking the time to read this. I am looking to purchase a resale property in Eleonas Gardens in Sotira. It has the full title deeds.
The estate agent has advised me the 5% VAT is still applicable to be paid on the property as when the property was sold to the current owner it was part of some special arrangements as the owner had done some work for the Developers. As due diligence has been done the estate agent has said it has only just come to light that the VAT is to be paid. The owner will lower the price accordingly as the VAT has to be paid. Have you ever encountered this? I am assured by the fact the property is owned by a vendor and not the developer and that the full deeds are available. I am just confused by this VAT issue. Does anyone have any knowledge/ experience of this? I did try and send a private email to Nigel but had an error message come back.
Kind regards
Nigel Howarth
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Joined: 24 Oct 2007 14:38
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Re: Hello & Eleonas Gardens in Sotira

Post by Nigel Howarth »

Hello Amy & welcome to the forum.

No - I have not heard of this before. What does your lawyer have to say about it?

Homes bought resale are not liable for VAT. Th first purchaser should pay VAT to the developer - there is no benefit in him giving you a discount and expecting you to pay.

The Land Registry will assess the property's value at it's date of purchase and your Property Transfer Fees will be based on that assessment. If the vendor gives you a 19% discount and expects you to pay the tax I can't see the Land Registry accepting you paid the VAT as the property is a resale and not liable for VAT.

See what your lawyers has to say - I'm very suspicious.

Regards,
Nigel Howarth
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