The usual stages of buying or selling a property are:
- The buyer and seller agree a price through the estate agent
- The Sellers’ Solicitors send papers to Buyers’ Solicitors. Searches and enquiries are made by the Buyers’ Solicitor and finance arranged for the Buyers.
- When everyone is ready (4-5 weeks) Contracts are Exchanged. You are then committed to your sale or purchase on an agreed date (usually 1-2 weeks later).
- Completion day i.e. money is paid and you actually move.
Autumn Statement: Buy-to-let homes face higher stamp duty – BBC news
Buy-to-let landlords and people buying second homes will soon have to pay more in stamp duty, the chancellor has announced.
From April 2016, those in England and Wales will have to pay a 3% surcharge on each stamp duty band.
George Osborne said the new surcharge would raise £1bn extra for the Treasury by 2021.
Landlords reacted angrily to the change, saying it would “choke off” investment in rented properties.
Other changes announced by the chancellor included an extended Help to Buy scheme in London, and more money for the Starter Homes programme.
‘Choke off investment’
The stamp duty surcharge will lift each band by 3%. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%.
For the average buy-to-let purchase of £184,000, that means they will pay an extra £5,520 from April 2016.
Commercial property investors, with more than 15 properties, are expected to be exempt from the new charges.