Are you still thinking of purchasing a property? The stamp duty holiday deadline is fast approaching!

The Government announced in July 2020 the new reduced stamp duty rates, which meant that residential purchasers only paid stamp duty on properties above £500,000.00. If residential purchasers were subject to higher rate stamp duty then the changes meant that 3% higher rate applied to properties up to £500,000.00.

The impact of the new stamp duty holiday scheme saved homebuyers thousands of pounds when purchasing a property. The impact also meant that the demand for Property Solicitors had increased and so the conveyancing process is now taking longer. The stamp duty holiday deadline is on the 31^st March 2021 and is fast approaching, we would therefore strongly recommend that you allow at least three months for property transactions to complete.

It is important to start thinking of instructing a Solicitor now to be able to realistically complete your sale and purchase transactions prior to the stamp duty deadline. Here are some tips to help you get the process started:

1. Sale dependent on purchase

If your purchase is dependent on you selling your property then you will need to ensure you have a buyer lined up and ready to go on your sale. You must also be aware of any chain transactions as you will only be able to confirm a completion date once all the parties in the chain agree and so the earlier the process is started, the more likely all parties will complete prior to the deadline.

If you have not yet found a buyer for the property you are selling, you will need to get the property on the market as soon as possible and ensure you instruct an experienced estate agent to value your property. It is extremely important that you market the property for the correct sale price as if the property is over-priced, you are unlikely to find many buyers which will ultimately pro-long the process.

2. Offer Accepted

Prior to starting your purchase transaction process, it would be wise to ensure an offer has been accepted on the property you are selling as if there is no sale, then you will not be able to progress your purchase. Progressing a purchase transaction without a sale may also mean you will be subject to abortive solicitor fees if you were unable to proceed.   

3. Mortgage In Principle

Having a mortgage in principle is favourable to sellers who are deciding on which offers to accept on their properties. This shows that you are keen to get matters moving and that there will not be any unforeseen delays or problems with mortgage applications.

4. Instruct a Solicitor

Whilst you are in the process of sorting the above-mentioned points, it would be good to contact different Solicitors firms for quotes so that you know whom you will be instructing once your sale and purchase is agreed.

We would advise using the same Solicitor for your sale and purchase as the Solicitor would be aware of the progress on both files and can reach the preferred completion date.

5. Missing the Deadline

Whilst your Solicitor will endeavour to complete your purchase for you prior to the deadline, it would be wise to prepare financially, if for any reason, you miss the stamp duty holiday deadline. Please ensure you consider your finances and that you have funds available to enable you to continue with the purchase if stamp duty becomes payable after the deadline.

We would strongly advise that you get your sale and purchase transactions started now as the deadline is fast approaching and you may run the risk of missing the deadline if you start the process late. Our Property department is able to assist you in sale and purchase transaction. Please contact us on 0116 2554855.