First-time buyers, do you know what stamp duty you need to pay?
Bath’s location, beauty, and glorious lifestyle make it very popular with young professionals.
Over time, many decide to make their stay permanent and start to look for their first home. Working with first-time buyers is always a thrill; their openness and excitement is infectious, but they are often daunted and confused by the sales process. It was therefore no surprise when it was reported this week that first-time buyers are still unsure about the amount of stamp duty payable (SDLT).
As a first-time buyer you will be conscious of needing to raise the deposit for your new home. You will also be aware of subsequent costs, such as legal fees, searches and surveys, as well as the costs associated with moving home. One more cost is the stamp duty tax, but do you understand what you’ll need to pay?
In the Budget last year changes were made to offer stamp duty relief to some first-time buyers, yet according to research by online broker L&C Mortgages, nearly a third are unaware how the changes impact on their purchase.
David Hollingworth from L&C Mortgages stated, “The stamp duty relief is welcomed by many who are looking to buy their first home, but the new rules could be considered complicated by someone who hasn’t been through the process of purchasing property before. In fact, the lack of understanding uncovered through our research could mean that some first-time buyers think that owning their own home is one step further away than it actually is.”
As a first-time buyer, what stamp duty do you have to pay?
Great news for any first-time buyer looking to purchase a property under £300,000, as you no longer have to pay any stamp duty for a residential property.
If the property you are looking to purchase is between £300,000 and £500,000, then you are required to pay SDLT at the rate of 5%. The stamp duty relief at this level means a saving of £5,000 compared to the SDLT payable for non-first-time buyers.
Sadly, there is no relief should you wish to purchase a property for over £500,000.
Am I eligible?
The government are very clear on who is eligible for stamp duty relief. They state that a first-time buyer is an “individual or individuals who have never owned an interest in a residential property in the United Kingdom or anywhere else in the world, and who intends to occupy the property as their main residence.”
Therefore, should you or your partner have owned or partly owned a property at any time previously, you are not eligible for the stamp duty relief.
Guiding you through your sale
At The Apartment Company we don’t just focus on finding you the right property, but also on guiding you through the entire process. There is no doubt that buying a property for the first time is a learning curve, and therefore we want you to know that there are no silly questions - we want to ensure you are in the best place to make decisions that are right for you.
If you’re looking for your first home in Bath, come and talk to a member of our team; not only will we be able to show you some incredible apartments across the city,we can also give you the support you need to make the process more enjoyable.