We answer all your questions on the new governement scheme.
How long will the ‘Stamp Duty Holiday’ last for?
The stamp duty holiday is available from the 8th July 2020, until 31st March 2021. Providing that you haven’t completed your home purchase before 8th July then you are eligible for the stamp duty holiday.
How much stamp duty will I pay now?
No stamp duty is paid on any main home that costs under £500,000. If the property price is between £500,001 and £925,000 then Stamp Duty will be charged at 5%. A property worth between £925,001 and £1.5 million will be taxed at 10%. People buying properties over this threshold (over £1.5 million) will need to pay 12%. The stamp duty holiday could save buyers as much as £15,000 if they purchase a property over £500,000. To calculate the exact stamp duty cost, please visit the official Government Tax Service website here.
What effect will this have on the housing market?
During the lockdown, the housing market was brought to a halt, and property prices fell by 1.4%. Things have picked up again since the 12th May, when the government announced the re- opening of the housing market. We believe that the stamp duty holiday will encourage those who were considering moving, to do so now, taking advantage of the government scheme. This could give the housing market the boost it needs to return to its pre-lockdown level.
Does it apply for second homes?
No, the stamp duty holiday only applies to properties which will be your main residence. If you own a second home as well, then as long as the new property purchase is your main residence, then you will still be eligible for the stamp duty holiday.
How much of a deposit do I need for a mortgage on a property?
Most lenders now require buyers to have a 20% deposit to be eligible for a mortgage. This is a large increase since the pandemic.
Am I able to look around a property, despite the pandemic?
Yes. Estate agents have various rules in place to ensure that you can view a property without risk. Internal doors will be left open, to eliminate the need to touch door handles. Vendors will not be present for viewings, and they will be encouraged to clean surfaces thoroughly beforehand. Only people from the same household are permitted to attend a viewing at once. Please discuss with the estate agent if you are concerned. Virtual viewings are available with most estate agents, though it is recommended that you physically view a property before purchase.
I’m interested in moving, how soon are bpl solicitors able to process my property transaction?
Our offices are still open and our solicitors are dealing with property transactions every day. Many variables can affect the speed of a property sale/purchase, but rest assured that as a specialist conveyancing firm, you are in good hands. We can begin your conveyancing immediately, please complete our short quote form to receive a competitive quote. As an online conveyancing firm, we are already equipped to deal with property transactions at a distance. At bpl solicitors, we do not require any face-to-face meetings, and have the resources to carry out ID checks remotely. Our case tracking portal allows you to monitor the progress of your property sale or purchase in the comfort of your own home, and you will receive regular email updates. Please contact us today if you have any questions.
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