Under the new rules set December 2014, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next bit up to £1.5 million and 12% on everything over that.
Example of how the new rates and calculation method applies:
Buyer exchanges contract for the purchase of a house for £275,000 on 5 December 2014. Completion has been fixed for 5 February 2015. Under the new rules SDLT is calculated as follows:
-0% on the first £125,000 = £0
-2% on the next £125,000 = £2,500
-5% on the final £25,000 = £1,250
-Total SDLT payable = £3,750
The old rate would have resulted in a stamp duty payment of £8,250. The saving to the buyer under the new rules amounts to £4,500.
The new rates and method of calculating Stamp Duty Land Tax (SDLT) apply to properties where exchange of contracts happens on or after 4 December 2014.
MAKING AN OFFER
So you’ve seen your dream property and now it’s time to make an offer! When putting your offer to a vendor, the more information we can give them about your position, the better chance you have of having an offer accepted.
We would need full details if you have a related sale or chain and also need to see a copy of your mortgage agreement in principle. It is always helpful for us to be in contact with your financial advisor if you already have one, as they can further confirm your position to proceed.
SALE AGREED – CONVEYANCING BEGINS
It's now time to appoint a solicitor. It is a good idea to get a few quotes before making a decision. We are happy to put you in touch with local solicitors that we have worked with and have previously had successful dealings with. (TIP* Don't always go with the cheapest quote!)
If you are buying a property with a mortgage, you will be required by the bank to have at least a 'mortgage valuation' however buyers often decide to have a more detailed survey. This can usually be upgraded through your mortgage lender to a ‘Homebuyers report' or can be sought independently as a homebuyers report or full structural survey. There are a number of local surveyors with whom we have had dealings with and would be happy to assist you with a survey on the property/provide you with a quote.
EXCHANGE AND COMPLETION!
Once your solicitor is happy with all the documentation & searches and you have received your mortgage offer, they will look to exchange contracts which is when the sale becomes legally binding. Thereafter you will complete the purchase of your new home (usually a week or two after exchange) and collect the keys!
USEFUL TIPS FOR MOVING
• Inform all relevant parties that your address will be changing – such as utility companies, your employer, your bank & even redirect your mail.
• You may need to contact the Council Parking Office so they can post a non parking restriction outside the property to allow space for removal vans.
• You need to have buildings insurance in place as soon as you have exchanged on your purchase.
• You can take your TV License with you when you move.