News
Stamp Duty
The threshold of £250,000 below which first time buyers pay no stamp duty, expires on 24th March 2012. If you are about to buy a property and hope to qualify for this exemption, you will need a fast, proactive solicitor so congratulations, you have come to the right place! To qualify the buyer (or all buyers if more than one) must never have previously owned, or part owned, any property or land either in the UK or anywhere else in the world, and must occupy the property being purchased as his, her or their main residence. Buyers will have to sign a confirmation that they qualify for the relief and we expect HMRC to check the accuracy of these statements.
For everyone else, stamp duty on a purchase is paid (on the entire price) at a rate of 1% for properties costing between £125,001 and £250,000, 3% between £250,001 and £500,000, 4% between £500,001 and £1m, and an eye watering 5% for everything above £1m. Stamp duty thresholds have never been raised in line with property prices, and the actual rates have constantly been increased, and in our opinion stamp duty is excessive and unjustified. A reduction in rates would assist the housing market, and avoid the unfairness of buyers having to pay the government tens of thousands of pounds in tax just for the privilege of moving house. But we are not holding our breath!
The Housing Market
It is no secret that the housing market has been in the doldrums for some years now, with the number of transactions running at about half the level of those prior to 2009. However, prices have not collapsed as predicted by some, and in some areas (notably London) have continued to rise. As we are continually told that there is a shortage of housing in the UK, logic would dictate that property will always be a sound long term investment. So if you are thinking of entering the property market for the first time, or of moving house, 2012 would seem as good a time as any to do so!
As the market continues to be sluggish, when selling it is important to be able to proceed with the legal formalities quickly once a buyer is found. If you wish we can assemble a full legal pack of documents ready to send out as soon as an offer is accepted. Alternatively, if you are in no hurry we can wait until later before progressing the legal formalities. Either way, we offer an efficient and speedy service tailored to what you want.
