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If so.... b****r!
(nearly £25k out of pocket in stamp duty for a £495k house if it's not your first house purchase!!)
🤦🏻♂️
4 weeks ago! Dammit!
Moving in Sept/Oct, just saved about £13K.
I've moved house a year ago and I feel sick.
3 weeks ago!!! Bugger!
Why would the seller have sold for less?
Removing stamp duty won't reduce prices... if demand dies off (very likely for other reasons this autumn, and first quarter next year) it helps prevent the seller being out of pocket if prices do have to go down, and so keeps the market moving.
Err try £15k rather than £25k surely...
Probably wouldn't have had to reduce price on Mrs dbs House by £5k on Monday but hey ho, so long as the sale goes through this time it will help our buyer out a bit 👍
Last Thursday, £9500!
At offer accepted stage, hoping to complete in 6-8 weeks. So it's a £6k bonus for me if things work out. Obviously extremely harsh if you've just completed. But to be honest, I'd rather have completed in March/April and paid the £6k. Crapping myself that chain will collapse again, hoping this will help glue it together.
So does this holiday also apply to second homes? (asking for a friend)
Seems so thegeneralist, as long as the property is under £500k.
Anyone seen any detail on impact of changes to SDLT on purchases over £500k?
Due to exchange in the next week.
It is not clear if for a purchase of say for example £550k we would still be liable for the previous SDLT rates (eg £17.5k SDLT on a £550k purchase) as there would be no changes to rates for purchases over £500k; or if the zero rate threshold has increased from £125k to £500k therefore we would only be liable to SDLT on the £50k above the new £500k 0% threshold (eg £2.5K SDLT, £50K at 5%)
It does appear to be the case. How obscene.
(In relation to the post two up)
The later peekay... well at least that's how it was reported on Radio4 earlier. You'd be wise to check.
Removing stamp duty won’t reduce prices… if demand dies off (very likely for other reasons this autumn, and first quarter next year) it helps prevent the seller being out of pocket if prices do have to go down, and so keeps the market moving.
Pretty sure it will do - we're looking at the minute and theres stuff 10/15k over the £500k mark which nobody is going to pay that for until March now as theres another £15k on top of that in stamp duty. As a buyer it should play in my favour as it basically gives me another £13k budget to play with if I need to.
It does appear to be the case. How obscene.
£500k is 2x the average house price, so hardly obscene that only lesser mortals should get a helping hand. But it does create that silly step up but no different to the +£1m houses I guess
Anyone seen any detail on impact of changes to SDLT on purchases over £500k?
I’m interested in knowing this too. I was idly ogling a house that came up at £540k onto my Rightmove this morning before the announcement but now I’m very tempted.
I found this to support what r4 said.
At offer accepted stage, hoping to complete in 6-8 weeks. So it’s a £6k bonus for me if things work out. Obviously extremely harsh if you’ve just completed. But to be honest, I’d rather have completed in March/April and paid the £6k. Crapping myself that chain will collapse again, hoping this will help glue it together.
Going off what I've just heard on the radio, I think you'll still be paying the SD as an offer has been accepted. Best to check with your solicitor though.
Seems so thegeneralist, as long as the property is under £500k.
and in England.
Sorry, yep.... £15k
Going off what I’ve just heard on the radio, I think you’ll still be paying the SD as an offer has been accepted. Best to check with your solicitor though
easily enough solved. Withdraw the offer.
Then offer again
Shirley?
£500k is 2x the average house price, so hardly obscene that only lesser mortals should get a helping hand. But it does create that silly step up but no different to the +£1m houses I guess
Funnily enough, whilst you were typing this, I edited my post to ensure people realised I was referring to the second home issue, not the £550k house issue 🙂
So am I correct in interpreting it that for every planned purchase of a property over £500k, the buyer will make a £15k saving on SDLT?
So am I correct in interpreting it that for every planned purchase of a property over £500k, the buyer will make a £15k saving on SDLT?
That is how moneysavingexpert are reporting it.
that doesn't make any sense, stamp duty is payable when you buy a house i.e. when the money changes hands. When the offer was made is irrelevant.Going off what I’ve just heard on the radio, I think you’ll still be paying the SD as an offer has been accepted. Best to check with your solicitor though.
Fingers crossed anyway as due to exchange/complete on Friday!!! 😃 This is potentially the first bit of really good news we've had since starting the process back in Feb. 😂
So does this holiday also apply to second homes? (asking for a friend)
according to an updated online calculator second homes are not included so stamp duty as before.
I’m interested in knowing this too. I was idly ogling a house that came up at £540k onto my Rightmove this morning before the announcement but now I’m very tempted.
So now you'll just pay SD on anything over £500k
Pretty sure it will do – we’re looking at the minute and theres stuff 10/15k over the £500k mark which nobody is going to pay that for until March now as theres another £15k on top of that in stamp duty. As a buyer it should play in my favour as it basically gives me another £13k budget to play with if I need to.
Eh? From midnight last night, you'll now only pay 5% stamp on the amount above £500k. So for a £515k house, you'll pay £750 stamp duty.
I'm not sure where the 10% rate now kicks in - if it's still @ £925k or that has been raised to £675k above the new threshold.
Going off what I’ve just heard on the radio, I think you’ll still be paying the SD as an offer has been accepted.
That can't be right (I hope - due to complete in 3 weeks), how would they enforce it? Presumably people could just mutually agree to terminate the offers all round and then have them re-accepted. Was it for those with contracts already exchanged who hadn't moved yet?
Hope it isn't, as we've been stuck in limbo with our house since January due to archaic English law stupidity and a little bit of luck for a change would be nice. Would still prefer to have moved earlier in the year and paid the tax, but this would do nicely!
Pretty sure it will do – we’re looking at the minute and theres stuff 10/15k over the £500k mark which nobody is going to pay that for until March now as theres another £15k on top of that in stamp duty. As a buyer it should play in my favour as it basically gives me another £13k budget to play with if I need to.
the statement is that there is no stamp duty on the first 500k - so a property at 501k would just be paying stamp duty on the 1k in excess. No reduction in prices (in fact, they might go up slightly if the vendor thinks they can get away with it).
I'm not sure on whether, for second homes, the reduction on a 500k place would just be the 'defualt' stamp duty or the default plus the additional 3%
That is how moneysavingexpert are reporting it.
Lovely.
What ebike for £15k?
that doesn’t make any sense, stamp duty is payable when you buy a house i.e. when the money changes hands. When the offer was made is irrelevant.
Exactly. It's the completion date that matters.
https://www.thisismoney.co.uk/money/experts/article-1642059/Could-I-miss-out-on-stamp-duty-change.html
Going off what I’ve just heard on the radio, I think you’ll still be paying the SD as an offer has been accepted.
That doesnt seem right as I'd expect it to be at the point of completion.
However it does raise a concern if its at the time of completion: given it can take 2-4 months to go from offer to completion and the scheme is for 6 months, it could get very messy if the scheme is still running but there's not sufficient time to complete before the scheme ends.
Clearer info on the .gov website than the sloppy reporting.
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates
Doesn't appear as yet to affect Wales or Scotland, hopefully that will be addressed..
According to the GOV link, you still have to pay on 2nd homes.
Copy/paste from peekays link.
The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.
Clearer info on the .gov website than the sloppy reporting.
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-rates/blockquote >
Looks like they haven't updated the calculator yet...
Going off what I’ve just heard on the radio, I think you’ll still be paying the SD as an offer has been accepted.
That doesnt seem right as I’d expect it to be at the point of completion.
Maybe I misheard/understood it, but that's what it sounded like (shrugs, paid our SD 3 weeks ago upon completion)
I'll be completing next week probably but it's for less than 300k so no stamp duty for me anyway. I could only dream of being able to afford someplace higher than that.
Doesn’t appear as yet to affect Wales or Scotland, hopefully that will be addressed..
Yeah, just spoke to friends moving to Wales in a little over three weeks - they are praying to all the Welsh gods they can think of right now 😬
I could only dream of being able to afford someplace higher than that.
If you can’t afford a super expensive home (£300k still sounds rich to me, but I’m aware that depends on where you are) then you can’t afford to fund the Tory party. Who benefits most from this change? Those selling many high value homes… and they need to be kept sweet to keep the money coming into the party coffers.
Who benefits most from this change? Those selling many high value homes… and they need to be kept sweet to keep the money coming into the party coffers.
How does it benefit the seller ? I thought the buyer paid it ?
@revs Buyer doesn't need to fork out for stamp duty so has more money to spend on house.
Completed last September on a 375k house, the builder paid the stamp duty so I don't care *phew* - would be gutted if completed earlier in the year and this came about.
There was rumours this was coming as was a car scrappage scheme that was holding sales up - the taps will be unleashed now on both aspects hopefully, get things moving.
Like others we have agreed a price but not formally exchanged contracts (just sent them to the solicitor). Really unsure where this leaves if we pay stamp duty or not. Likely a phone call / email needed to get confirmation from my solicitor. Like most things from the tory gov' its left a little confusing.
If you can’t afford a super expensive home (£300k still sounds rich to me, but I’m aware that depends on where you are) then you can’t afford to fund the Tory party
£300k is super rich to me, I just mentioned it because anything under that amount doesn't pay stamp duty already.
And I would never, ever give any money to those scum anyway. If people are fortunate enough to be able to afford a house upwards of £500k then paying stamp duty should be a drop in the bucket for them. Also yeah, this wont change anything for buyers, sellers will just increase the asking price of their house by the amount of the stamp duty.
Like others we have agreed a price but not formally exchanged contracts
you don't purchase a house until you complete on it, so you will not be paying stamp duty
https://www.gov.uk/guidance/stamp-duty-land-tax-temporary-reduced-ratesblockquote > afford a house upwards of £500k then paying stamp duty should be a drop in the bucket for them.
a 3 bed semi is ~£600k round here. £20,000 of money lost every time you move house is not a drop in the ocean by a long long way.
https://www.rightmove.co.uk/property-for-sale/property-92578607.html
a 3 bed semi is ~£600k round here. £20,000 of money lost every time you move house is not a drop in the ocean by a long long way.
How many times do you need to move house?? Count yourself lucky that you're already on the property ladder and that you're not throwing over half your paycheck down the drain paying off some parasitic landlord's mortgage for them. Millions of people aren't and wont ever be able to get on the ladder because of how insanely stupid the market has gotten.
Eh? From midnight last night, you’ll now only pay 5% stamp on the amount above £500k. So for a £515k house, you’ll pay £750 stamp duty.
I’m not sure where the 10% rate now kicks in – if it’s still @ £925k or that has been raised to £675k above the new threshold.
Didn't realise it was was lowered above £500k but my comment still stands - houses will come down in price. For example, this which I've been looking at:
https://www.rightmove.co.uk/property-for-sale/property-74336350.html
Been on the market for £515k for months. Within 2 hours of the announcement yesterday it came down to below £500k.
Didn’t realise it was was lowered above £500k but my comment still stands – houses will come down in price
We were looking when the last changes happened.
Very pleased with announcement as it stood to save us a pretty penny.
In practice the asking prices went up by the saving amount, estate agent told us to do the same with ours, as they were priced with stamp duty in mind which was why no one sold at 255k they all marketed the houses at 249 and so on.
For a small number of houses it'll bring the cost down but they're the ones at or around threshold or not priced right in the first place, like the one in your link that's been for sale for months.
We completed 2 weeks ago and moved into rented and hope to buy something soon - money saved will pay for a year’s rent and removal costs
It seems there maybe some confusion here as to how stamp duty is calculated...its tapered so, with the change, most should benefit regardless if over or under £500k. Those over £500k will save £15k in SD and then pay 5% on the cost over £500k so a £700k house has gone from £25k SD to £10k
Yes let's keep inflating the housing market, what could go possible go wrong when we have generations of people trapped with crazy high rents their entire lives.
Count yourself lucky that you’re already on the property ladder and that you’re not throwing over half your paycheck down the drain paying off some parasitic landlord’s mortgage for them. Millions of people aren’t and wont ever be able to get on the ladder because of how insanely stupid the market has gotten.
Yep, purely luck for everybody on the property market. No working hard, saving and making sacrifices to get a deposit together then doing improvements to add some value before moving on.
afford a house upwards of £500k then paying stamp duty should be a drop in the bucket for them.
I really disagree its all relative. My partner and I have average London incomes but our 2 bed London flat is going to cost us 500k - its just a fact of living in London. Do we have 15k put aside for stamp duty no not at all who does. We were going to be taking out of our house sale.
This could be great news. I think we’re going to be bringing forward our plans to move as a saving of £10-£15k isn’t to be sniffed at!
Yes let’s keep inflating the housing market, what could go possible go wrong when we have generations of people trapped with crazy high rents their entire lives.
Yeah, lets devalue the property market. That'll do wonders for the economy.
Completed fairly recently. Have done double glazing and insulation and cavity wall already.
Seems we’ve missed out. Such is life.
And my redundancy letter arrived earlier.
Least the garden will get dug now I have time!
How many times do you need to move house??
I'm hopefully never going to move again, but that doesn't mean that stamp duty isn't a stupid tax. I don't have a problem with taxing property wealth but taxing people for moving house blocks physical mobility, which in turn acts as a resistor for people going for jobs in other locations. Lets say you move 3 times, that's 60k around here which is approx 100k of pre-tax salary, in tax, that you never see again.
Count yourself lucky that you’re already on the property ladder and that you’re not throwing over half your paycheck down the drain paying off some parasitic landlord’s mortgage for them. Millions of people aren’t and wont ever be able to get on the ladder because of how insanely stupid the market has gotten.
I do. It doesn't affect my point that stamp duty costs a significant amount of money and is daft
that will be because the reduction will put them back at the top of the Rightmove, etc listings, as well as now showing people with a 500k cap the property. A house like that needs to stand out otherwise it'll get lost, there's probably loads similar on the market.Been on the market for £515k for months. Within 2 hours of the announcement yesterday it came down to below £500k.
Yeah, lets devalue the property market. That’ll do wonders for the economy.
Actually yes it will, funny thing is people with have a lot of money to spend and start new businesses if all their money is not tied up paying someone else's interest only mortgage.
Actually yes it will, funny thing is people with have a lot of money to spend and start new businesses if all their money is not tied up paying someone else’s interest only mortgage
Though a cheaper housing market wouldn't change that. All that would happen is the landlord now buys 4 houses instead of 1, hoiks the rent as the property value is no longer a significant return in its own right.
Deposits go up because the house is a bigger risk for the bank of its not simply chunking up 5% year on year so now people who can't afford 15% of a 200k house now need 30% of va 100k one instead, so can't afford it, still pay the same rent to the Landlord whose own outgoings went down so uses the gain in rent to buy up a tranche of cheap houses.
That pushes the market back up and your back where you started only with less affordable housing for sale and more rentals.
which is why we need a) rent controls b) kill the buy to let market so only professional rent out homes.
– money saved will pay for a year’s rent and removal costs
Only if you complete on a purchase before the rate holiday expires.
I'm loving some of the numbers being bandied about here. I'm in the process of moving, I've just sold my house for £58k. If the gov.uk calculations are right, the change in Stamp Duty will save me ~£750.
that doesn’t mean that stamp duty isn’t a stupid tax.
Seems it was brought in in the 1600s to subsidise the war against France. Might come in handy post-brexit.
Heh, Yep we completed 10 days ago. It has cost us into 5 figures.
Oh well, nothing we can do about it.
Flip side is, the chain was in danger of collapsing. Another 10 days & we wouldn't have sold at all. The stress of having to go through it all again to get to that point, i'd rather have spent the money.