The property market was beginning to become more active and buoyant post-lockdown, but this huge saving attracted the attention of many people considering a move. We all need a little prompt, and this really did do the trick!
Properties are in demand, so much so we are seeing properties not even making it to the market as offers are being made and accepted, some well above the asking price, or same day offers are being accepted, mostly at the full asking price. It’s fair to say there is no ‘doom and gloom’ around the property sector at the moment; it’s painting a very positive picture.
So, what do you need to know when working out your finances if you’re planning to move?
Put simply, Stamp Duty is a tax which is payable upon completion of a property purchase. Data provided by HMRC illustrates the amounts currently payable, as below:
|Property or lease premium or transfer value||SDLT Rate|
|Up to £500,000||Zero|
|The next £426,000 (the portion from £500,001 to £925,000||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
The timeframe in which you can take advantage of this saving runs out on the 31st March 2021, which means you need to have completed your house purchase no later than 11.59pm on this date. For property transactions which complete after this deadline, Stamp Duty will revert back to previous levels, potentially costing you up to an additional £15k.
Obviously, a collaborative approach will need to be adopted to ensure your team works closely to ensure a smooth completion within the given deadline. At this stage, we recommend you receive advice from an independent financial advisor who has access to the whole of the market to ensure you are taking full advantage of this tax break. They will be able to understand your personal position and find the best mortgage deal for your situation.
This is a great example of where My Property PA can really add value. We can keep close to your house purchase to ensure your transaction is running to schedule and liaise with all the professionals involved to ensure they are working as one team. By making sure things can stay on track, we can help you move into your new home with the minimal hassle
To find out more, please feel free to get in touch to see how we can help you through your house purchase process on 020 3931 5758