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Is it legal to pay above the market value for a property?

I and another family member are buying a plot from our siblings. This is 2 seperate transaction with the site being split approx 65/35 The site has planning permission, but the valuation from the bank doesn't take this into account so the valuation on 1 part has come in significantly lower the the sale price (£168k). There hasn't been a valuation from a bank on the other plot as this is being bought for cash. To save on stamp duty and to lower interest rates it makes sense for one the puchases to be inline with the valluation from the bank (£168k below the price agreed) and the other to £168,000 above the price that has been agreed between the vendors and purchaser. A gift of £168,000 would be made between the purchasers to cover this difference. Is it legal to inflate the price of one purchase by £168k so as to effect stamp duty and interest rate saving?

Asked on Mar 4 2013, General in London | Report content

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