Stamp duty holiday extended: What does this mean for you?

The stamp duty holiday extension will allow purchasers an additional three months to complete transactions that it was feared would otherwise fall through.

Apartment block signifying property purchases and Stamp Duty holiday

Much was expected of Rishi Sunak’s budget to set the country on its path out of the crippling economic impact of the pandemic. One of the less surprising moves was to extend the current stamp duty holiday until the end of June 2021, allowing purchasers an additional three months to complete transactions that it was feared would otherwise fall through.

The threshold for paying Stamp Duty Land Tax (SDLT) will remain capped at £500,000, allowing the purchase of a property, which up to that value, no stamp duty is payable. A tapering down of the threshold from July (dropping to £250,000) should ensure a smoother transition, returning to pre-pandemic values of £125,000 from October 1st.

What happens if I am already in the process of buying a house?

This means your transaction will continue as planned and you will benefit from the SDLT holiday if your transaction completes by the end of June 2021. This comes as a relief to many who were racing against time to hit the previous deadline of 31 March 2021.

Will I have time to buy a property before the new deadline?

Commence the process by instructing your solicitor as early as possible, and they will be able to provide you with the advice you need to get started. You can get the transaction underway, and you may well benefit from some, if not all of the relief.

I’m ready to buy. Will I be able to get a mortgage more easily?

Good news here for buyers. The government has also announced a new mortgage guarantee scheme which increases funding up to 95% of the property value, requiring potential homeowners to provide 5% deposit. All lenders adhering to the project will offer mortgages fixed for at least five years, which will provide an option for those with a smaller deposit who would like to benefit from the fixed rates over a longer term.

The loans will be available to current homeowners and not only first-time buyers, so if you are thinking about purchasing and securing a mortgage is your key concern then now is the time to make your move. Contact our residential property team on 020 8944 5290 for more information.

This article was written by Mustafa Raniwalla

Please note the contents contained in this article are for general guidance only and reflection the position at time of posting. Legal advice should be sought before taking action in relation to specific matters.

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