Michael Hardy Blog, News & Updates

Take advantage of the stamp duty extension

15 March, 2021

Following the announcement on 3rd March that the stamp duty holiday now runs to June 30th, whether you are a buyer or a seller, we can help you make the most of it.

Those mid transaction, and fearing that their chain might collapse, will have breathed a sigh of relief at the news that they now have an extra 3 months to complete on their purchase.

But what if this extension has prompted you to consider a move? We can offer a few tips that will give you a shot at meeting the new deadline.

 

 

 

What are the new stamp duty thresholds as of March 2021?

The threshold for the tax will remain raised from £125,000 to £500,000 until the date of the new end of June deadline. It will then return, via an interim threshold of £250,000 to £125,000, by the end of September.

Our table below gives examples of the potential savings you could make before the 30th September (if you are not a first-time buyer). From the 1st of October, first-time buyers will revert to the previous tax scheme, with a £300,000 exemption on properties of £500,000 or less.

 

Property price Bill during £500,000 holiday (until June 30) During £250,000 holiday (July 1 to September 30 ) After reverting to £125,000 (from October 1)
       

£250,000

N/A

N/A

£2,500

£500,000

N/A

£12,500

£15,000

£750,000

£12,500

£25,000

£27,500

£1,000,000

£28,750

£41,250

£43,750

 

Our recent article looking at what the stamp duty changes mean for you gives you an idea of what savings are to be made in Wokingham, although it is worth noting that average prices have risen in this area since July 2020.

 

 

 

Sellers will need to act fast

You will need to act fast and list your property as soon as humanly possible. Stock levels of properties on the market are now below where they were during the summer rush, so if you manage to get on the market quickly, your property will stand out. With lockdown easing from 29th March, it is expected that market activity will start to ramp up, especially once the majority of over 40s have had their vaccine.

Analysis from Rightmove estimates that sellers should aim to be on the market by 23rd March to give themselves the best chance of making the full stamp duty saving.

As soon as your home is listed, you should search for a conveyancer so that you can instruct them the minute you either receive an offer or make one (if buying). We would always advise going with a local recommendation, rather than being tempted by a seemingly cheaper online alternative. When time is of the essence, cutting costs in this way may not pay off.

You can also speed things along by ordering searches as soon as you hit the market, then selling them to your buyer when the time comes. Local Authorities have been inundated with requests since last July, so it is worth doing anything you can to help avoid this particular sticking point.

Contact us today for a free no-obligation valuation to get the process underway.

 

Buyers

Do virtual viewings for all the properties you are interested in. The current safety advice is for all first viewings to take place virtually where possible, but even if this guidance is revised later in spring, you can see more properties, more quickly, where an immersive online tour is available. No need to wait for the weekend – view from the comfort of your own home!

At Michael Hardy, the vast majority of homes we market offer a 3d virtual tour which should give you a head start on your property search. View our properties for sale.

Start the process of getting a mortgage in principle as soon as you start viewing properties and gather all the necessary documents you will need such as proof of deposits and identification.

If you buying a flat in a building run by a management company, get informed up front and request the management pack as soon as your offer is accepted. Anything to avoid delays with vital information reaching the hands of your solicitor.

We can advise you of everything you will need to prepare for your sale or purchase in order to progress a sale as quickly as possible. To contact us to discuss buying or selling a property in this area or to arrange a valuation, please contact us on Wokingham 0118 977 6776 or Crowthorne 01344 779 999.