If you’re a first time buyer you’re immediately at an advantage when it comes to negotiating the housing market. Not only are you free from relying on a chain but you’re also able to dodge stamp duty charges to a certain extent. As of November 2017, a permanent change was applied to stamp duty for first time buyers, raising the threshold to £300,000 (and up to £500,000 in more expensive areas such as London), saving you an extra 2-12% in fees!
First time buyers are required to declare that they have never owned property in the UK or elsewhere to qualify for the relief, and if property is being purchased by more than one person, each party must be a first time buyer to qualify.
Normal stamp duty rates for single property ownership* apply over £125,000 at the following rates:
- £125,000 – £250,000 = 2%
- £250,000 – 925,000 = 5%
- £925,000 – £1.5m = 10%
- Over £1.5m = 12%
[*An additional 3% on top of these rates is also applied to additional properties (such as buy-to-lets and second homes), with no lower limit.]
Aside from the obvious benefit of a reduced stamp duty threshold, first time buyers also benefit from having no property ties, giving them greater flexibility and helping the process to move more quickly and easily than those having to sell their own property before they can buy. An offer from a first time buyer is instantly more attractive to sellers since there is no chain, speeding up the transaction and taking some of the stress out of the deal falling through.
And, to help first time buyers even more, the property team at Frances Lindsay & Co offers free conveyancing quotes and special rates for first time buyers! Contact us at www.franceslindsay.co.uk to speak to one of our experienced solicitors and get yourself on the property ladder…
Tags: conveyancing, first time buyers, property, property and conveyancing, stamp duty