Plans to boost the economic recovery, including extending the stamp duty holiday, has been announced in the Budget.
Rishi Sunak has confirmed that the Stamp Duty holiday will be extended until the end of September.
The chancellor announced that the up-to-£500,000 “nil-rate band” for stamp duty will finish at the end of June, rather than the end of March, as planned. It will then be tapered until September.
Consequently, until 30 June 2021, no stamp duty will be charged on a residential property bought for up to £500,000. This covers the majority of houses and flats in the UK.
Until 30 September 2021, no stamp duty will be charged on a residential property bought for up to £250,000.
Sunak had been under growing pressure to extend the deadline amid concerns it was creating a cliff-edge and risked thousands of buyers pulling out of transactions if they missed the no previous deadline of 31 March for the tax break.
In addition, the chancellor announced that first-time buyers will get a “government guarantee” on mortgages, with a deposit of 5%. Many big lenders are already backing the scheme, according to the chancellor. Truly fantastic news for all First Time Buyers wanting to get on the housing ladder.
1. Find an Estate agent with a real plan of how they are going to get you from sold to completion
It cant be underestimated how complex and stressful the legal process can be if not managed correctly and so understanding this from the outset and having a plan from the get go is paramount to you being successful. I cant stress how critical it is to have a plan from the get go to ensure you stay on track and hit your milestones in a timely fashion.
This will save you 2/3 weeks by doing this upfront and so getting your property information pack completed ideally before you receive an offer is a must especially in the current climate
3. Choose the right solicitor conveyancing partner for you and for your agent
Choosing the right conveyancer is absolutely critical but what is often not considered is how they are going to work with your agent. There has to be a relationship between the two parties and if there isn’t, communication is always impacted causing stress to all sides. Take advice from your agent on who they would recommend and most importantly why?
4. Sort your Energy Performance Certificate
Also known as an EPC this has to be included with a sale by law. It shows how energy efficient your new home is and if you moved in within the last 10 years, yours is still valid.
5. Get your paperwork together
If it’s a leasehold, find the lease. Locate certificates showing compliance with regulations of any works done from planning permissions to FENSA certificates for window replacements. Don’t forget valid guarantees a home buyer will want to see.
6. Get a mortgage agreement in principle before you make an offer on a property
Many lenders and brokers are experiencing COVID related delays and mortgage choices have significantly reduced, especially for first time buyers. Avoid wasting time later down the line and start the mortgage process now
In uncertain times like these, home buyer protection insurance covers buyers for some of their legal and survey costs as well as mortgage lending fees should your purchase fall through.
8. Build in time for local searches
Covid-19 and now lockdown restrictions mean many local authorities are struggling to supply their own searches and also to provide access to data for personal search companies.
If you are moving within an area you know well, then “no search indemnity insurance” will cover you if one or more searches do not come through before you need to exchange. But you’ll need to check your lender would be happy to lend on that basis.
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