First time property buyers will need to move quickly if they are to benefit from Stamp Duty exemption. The chancellor is to scrap the 1% Stamp Duty exemption on homes costing up to £250,000 by March 24th this year.
The Halifax have warned that one third more first time buyers will have to pay Stamp Duty this year, compared to last year. The number of first time buyers fell to its’ lowest level last year since 1974. This means that buyers trying to get a foot on the property ladder will have to complete no later than March 23rd in order to qualify for relief on Stamp Duty.
Affordability of property is at its best level since 2003 say the Halifax, and any saving that can be made is worth having, particularly as mortgage lenders are demanding higher deposits from first time buyers.
David Walton, a Partner in our Conveyancing Team says “It should be noted that the current exemption of Stamp Duty will still apply but only if completion occurs on or before March 24th and not just if contracts have been exchanged prior to that date. Completion is the date that you will move into the property after paying the balance of the purchase price in full to the seller through your solicitor. It is not sufficient to have merely exchanged contracts – that means you have paid the deposit and agreed a completion date – as at that stage you will not be eligible and will have to pay Stamp Duty if the agreed completion date is after March 24th.”
Fortunately, in most cases with first time buyers, the legal processes involved in house purchase is usually fairly straightforward so there is still time to take that important step of buying your first home. Contact our experienced Conveyancing Team who will be happy to answer any questions you may have.
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