On 8th July the Chancellor, Rishi Sunak, temporarily reduced the rates of Stamp Duty Land Tax (SLDT) that is paid on the purchases of residential property in England and Northern Ireland until 31st March 2021. As a result, purchasers of main homes will now only start to pay SDLT on any amount they pay above £500,000.
In an additional boost to the property market, the Welsh Government have announced that from 27th July to 31st March, purchasers of main residences in Wales will not have to pay Land Transaction Tax (LTT) on any sum below £250,000.
This move has been welcomed by the property industry and in particular home movers who will now be able to save up to £15,000 in tax.
If therefore you are hoping to take advantage of these savings and you need to need to sell your current home then you must act quickly!
There are however many variables that can affect the time it will take you to find a buyer (location, property type, condition etc.) and according to the Post Office’s Rate of Sale tool the average UK property currently takes 114 days to sell. There is then the conveyancing process and legal work to complete and although a sale and purchase can sometimes have a relatively quick turnaround of two months, in more complex transactions or long chains this timescale can easily stretch to four.
That means that a total timescale of closer to 8 months should be allowed for. As the SDLT and LTT holidays only last just under 9 months, if you are thinking about selling you need to move fast and look to put your property on the market now.
We also recommend that you instruct our Property Department at Rowlinsons as soon as you list your property as we can prepare a ‘sale ready’ pack to save time and put you in the best possible position to achieve an early completion by dealing with some of the legal aspects upfront.
For buyers without a property to sell, you should still instruct our team as soon as you have had your offer accepted as there is no doubt that the next 9 months will be extremely busy for all involved. It is widely expected within the property industry that law firms will be inundated with cases following Christmas – all wanting to complete by 31st March!
For buyers currently struggling to obtain mortgages due to the reduction in higher loan to value lending, we can also recommend mortgage advisers who may be able to assist.
All of our clients benefit from our free mobile conveyancing app, which helps keep you informed of progress 24/7. With it, you can sign, send and receive documents and securely message your property lawyer all from your phone.
To get moving with Rowlinsons please call 01928 735333 or email firstname.lastname@example.org for a free no obligation conveyancing quote.