The stamp duty holiday was one of Chancellor Rishi Sunak’s biggest economic mitigation strategies during the coronavirus crisis. Buyers are now trying to beat the partial end of the program on June 30 – but is it too late for you to pass the stamp duty holiday deadline?
After this date, buyers in England and Northern Ireland will pay tax on the value of purchases over £ 250,000, unless this is their first home, while in Wales the threshold will revert. at £ 180,000.
Buyers who manage to get in before the deadline will save thousands of pounds on properties up to £ 500,000.
Simon Rubinsohn, chief economist at Rics, said: “Ending tax relief always has the potential to be a little disruptive to a market, but the economy is performing better than one would expect there to be. Time is still short and the cost of money remains at its lowest levels, the main drivers supporting demand will remain in place even after the stamp duty holiday expires.
“More difficult is the issue of supply, a theme that comes up strongly among survey respondents both with regard to the sales and rental markets.
Is it too late to take advantage of the stamp duty holidays?
Kirsty Burnham, Property Manager at Moving, advised Express.co.uk to readers whether it is wise to try and pass the stamp duty holiday deadline – and that depends on a number of important factors.
Ms Burnham says the type of property you buy is important: “If you are buying a freehold property it would be possible to trade in and complete by the end of June if there are no complications. with regard to documents / title.
“For a simple transaction where a seller’s lawyer has prepared all the contract documents (including research), this can be as quick as an ‘assisted exchange’ which can occur in the span of a day. , with a conclusion a few days later.
“For leasehold properties there is a lot more legal work to be done, so as much as it is possible to trade and complete in two weeks, you are relying on much more detailed information readily available, such as information on management and service charges. “
The type of buyer you are is also important in meeting this deadline, and finding a mortgage on time can be tricky.
Ms Burnham advises: “If you buy a property with readily available cash, it is possible to finish before the end of the month.
“If you are dependent on a mortgage, you will have a hard time meeting the deadline, especially as many lenders insist that completions take place by June 21 due to expected arrears due to the volume of transactions. . “
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Ms Burnham also says the shorter your chain of transactions, the more likely you are to miss the June deadline.
She says, “If there is only one transaction in the chain – your buy or sell, then you should have a good chance that the sale will be completed on time.”
“As soon as more transactions in the chain are involved, the odds decrease due to all of the previously mentioned factors. You are unlikely to have a string of cash buyers who have already asked for some research.
“However, if the chain is already well advanced, with very efficient carriers at your service, it is possible.”
“If the two attorneys, relevant to the transaction, have received instructions and are satisfied with the required time frames, then, depending on the other factors, there is no reason that a sale cannot be exchanged and closed within 2-3 weeks.
“This is not a typical schedule for a property sale, so you need to make sure everyone involved is 100% committed. “
House prices are expected to remain high even when the change ends in September, coming down to £ 125,000.
First-time buyers who purchase a property costing less than £ 500,000 are not required to pay SDLT.