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I think she's got it wrong. @airtime had this problem and did exactly what I described with his solicior . purchase price at land registry was x, the price paid in reality was x minus 2 or 3/grand.
You would need to agree that the allowance was in respect of property improvements though..
Iaalbnyl etc
You really don't need to do this and it'll be another credit search on your credit record etc
You need to speak to your solicitor about this and ask them about arranging an allowance, it'll be properly drafted and attached to the contract as a 'rider'. It's the easiest way of dealing with this.