The Chancellor confirmed the much anticipated extension of the stamp duty holiday in his Budget announcement.The tax cut is now set to run until the end of June with many who are in the process of buying or selling their home welcoming the announcement.
From July, the nil rate band will be set at £250,000 until the end of September – double its standard level. It will then reduce to its usual level of £125,000 on 1st October.
If you complete on a main residence costing up to £500,000 between 8 July 2020 and 30th June 2021 you will not pay any stamp duty. Should you wish to purchase a more expensive property you will only be taxed on the value above this amount.
In terms of cash, this means buyers could save themselves a whole lot of money – up to £15,000 if opting for a property worth £500,000 and above. In fact, it’s estimated that nearly nine out of 10 buyers purchasing a main home will pay no stamp duty at all.
Before the latest announcement, first time buyers already benefited from a stamp-duty saving, being exempt from the tax for properties up to the value of £300,000. The holiday may mean buyers can stretch their purse strings and opt for a more expensive home that may have previously been out of budget.
First time buyers will only need to pay the tax on properties costing more than £500,000.
The table below demonstrates the saving first-time buyers can make the following savings between now and June 2021:
First-time buyers |
|
– Property price – |
– Savings under new holiday rules – |
£0 – £300,000 |
£0 |
£350,000 |
£2,500 |
£400,000 |
£5,000 |
£500,000 |
£10,000 |
There are arguably bigger benefits to be had for existing home movers, looking to make the move to a more expensive property.
If you reside in England or Northern Ireland, stamp duty will now only kick in at £500,000 and above, instead of the previous threshold of £125,000. This means there are big savings to be had for those moving up the property ladder.
Existing homeowners could make the following savings:
Existing Homeowners |
|
– Property price – |
– Savings under new holiday rules – |
£200,000 |
£1,500 |
£300,000 |
£5,000 |
£400,000 |
£10,000 |
£500,000 |
£15,000 |
Are there any savings to be had for property investors? Yes, buy-to-let investors could still benefit from the stamp duty holiday.
Investors and those buying a second home, in England and Northern Ireland, will still need to pay the 3% surcharge. But, there are savings to be had.
For example, previously an investor purchasing a second-property for £500,000 would have to fork out for a stamp duty bill of £30,000. Under the new exemptions, they could make the same purchase and only need to pay 3% – or £15,000 in tax – in other words they’d make a 50% saving.
The table below demonstrates the savings that could be made:
Buy-to-Lets and Second Homes |
|||
– Property price – |
– Previous stamp duty bill – |
– New stamp duty bill – |
– Saving – |
£200,000 |
£7,500 |
£6,000 |
£1,500 |
£300,000 |
£14,000 |
£9,000 |
£5,000 |
£400,000 |
£22,000 |
£12,000 |
£10,000 |
£500,000 |
£30,000 |
£15,000 |
£15,000 |
Our experienced Chartered Surveyors can carry out a full structural building survey on your chosen property.
Following a thorough inspection of all accessible areas of the property, you will receive a comprehensive report that comments on all aspects of the property’s general condition and highlights whether there is any evidence of structural movement, both historic and active, timber defects, and issues relating to dampness.
We can also advise on and answer any specific queries you have regarding construction, extension, alterations or repairs you may want to make to the property.
Reports are turned around within five to seven days of inspection and you will be able to talk directly to the surveyor working on your behalf should you have any questions when you receive your report.
For homeowners looking for a sellers valuation or purchasers looking for a pre-purchase valuation, we can conduct these inspections at the same time as our building survey. This will save time and provide a cost saving to you compared to when both reports are conducted separately. Our valuation will provide you with essential information that gives you the best chance of paying a fair purchase price for your home or property.
You can typically expect to pay a fixed fee between £750 and £1200 + VAT for a straight forward residential building survey but larger or more complex properties will cost more and the exact cost will depend on a number of factors including the size and age of the property.
Our team of experienced Chartered Surveyors can assist you with a pre-sale valuation. They can determine the value of your property in the current market place, and work in accordance with the RICS Red book standards.
We assess all kinds of residential and commercial property including development land, houses and flats, including those of non-standard construction to provide our considered opinion of its value.
We will provide a detailed, evidence based report that provides our opinion of the value of the property in question and our aim is to assist you in making an informed financial decision relating to your property. Our valuation will give you essential information that gives you the best chance of receiving a fair sale price for your home.
We have an experienced team of RICS registered valuers who can provide a building survey, pre-sale valuation or pre-purchase valuation for any property. Contact us to discuss your individual needs.
If you found this article helpful and would like to receive more posts like this directly to your inbox, subscribe to receive our promotions email and quarterly newsletter or follow us on Twitter @KemptonCarr and like us on Facebook to see them first.