With national house prices rising by 83% in May and up from 76% in April we’ve seen an upward curve in property prices which has been intensified by the stamp duty holiday.
The market growth trend makes it a great time not just for enthusiastic prospective buyers but for those homeowners looking to sell their property too.
The phased end to the extension commences after June 30th 2021 and we’ve compiled our latest article to explain what’s happening with the stamp duty rates.
The Stamp Duty Holiday (SDLT) Explained
What is Stamp Duty Land Tax and who pays it?
Stamp Duty Land Tax (SDLT) is a levy that you pay to HM Revenue and Customs when you purchase a property. It is paid by the individual/s buying the property and the rate you’ll pay will vary dependent on where the property is located, how much you’re buying it for and if it is your only property.
It is always the homebuyer that pays stamp duty and usually this is carried out on your behalf by your solicitor as a part of the purchase process.
The Extension Overview
Rather than ending on the 31st March 2021, the temporary increase to the nil rate band for SDLT was extended in this year’s Budget announcement and applies to all residential properties (unless it is a second home) up to the value of £500,000 which is in place until 30th June 2021.
A Phased End
From the 1st July 2021 through to and inclusive of 30th September 2021 the nil rate band will be up to £250,000 with a return to the standard amount of £125,000 on the 1st October.
The SDLT rate applies to your property purchase based on the date that you complete and not the date you exchange contracts.
Who does this apply to? Property purchases from 8th July 2020 to 30th June 2021
Any residential property purchases made between 8th July 2020 and the 30th June 2021 will be charged SDLT above the £500,000 threshold. These rates apply for first tine buyers and if you have owned a property before.
Residential purchases from 1st July 2021 to 30th September 2021
Any property purchases from 1st July 2021 through to and including 30th September 2021 will pay SDLT above the threshold of £250,000.
Additional property purchases and surcharges
Since April 2016 there has been a stamp duty surcharge for anyone purchasing additional properties. If at the end of the buying process you will own 2 or more properties then you will be required to pay a surcharge on top of your ordinary SDLT.
All rates will revert back to the standard rates as of the 1st October 2021 prior to the temporary SDLT placed rates from 8th July 2020. To find out how this impacts you and your property or purchase it’s always advisable to seek professional guidance via your estate agent or financial advisor.
Your Valuations in a Buoyant Market
It’s a buoyant time and an encouraging property market with which to have your home valued. At CSB our team of reputable and experienced agents can give you an accurate gauge as to the value of your home and what price bracket it should be placed within.
The impact and introduction of the government-backed mortgage scheme once again and the extension to stamp duty has presented big opportunities for both buyers and those looking to sell.
One of the benefits of choosing us is that we offer FREE, no-obligation valuations on your property and can advise and clearly guide you through the process with the added advantage of our in-house services so that you can be ensured an expert driven and smooth service.
At CSB we understand that a home is more than just a home and we know that buying and selling is more than just bricks and mortar to our clients.
If you’re looking to have your property valued in Pendle and the surrounding areas get in touch to see how we can help you make your next move. You can reach out and call us directly on 01282 860606 or use our quick and easy online valuation form here.
At CSB we understand that a home is more than just a home and we know that buying and selling is more than just bricks and mortar to our clients.
If you’re looking to have your property valued in Pendle and the surrounding areas get in touch to see how we can help you make your next move. You can reach out and call us directly on 01282 860606 or use our quick and easy online valuation form here.