26 Jan Sellers Beware!
With just two months left before the 3% Stamp Duty surcharge comes in for 2nd home purchases there is strong demand from investment buyers to push sales through quickly.
The extra stamp duty will add £6000 to the cost of buying a £200,000 ‘Buy to Let’ property so it’s no wonder these landlords are keen to buy now.
When accepting any offer on your property it is really important to understand who the buyer is and their timescales. You might be selling to a young family, but if their buyer is an investor the pressure to move by the end of March could well be forced upon you.
It might suit you to move quickly but do consider the implications if the solicitors can’t quite make it happen by the 31st March deadline. If you’re lucky and the investor at the bottom of the chain doesn’t pull out they may need to cover the extra cost which could mean them asking you for a substantial price reduction right at the last minute.
The surcharge doesn’t just apply to buy to let purchases, any second home purchase including ‘bridging’ to buy a new main home are also subject to the extra 3%, although it may be reclaimed if the old home is sold within 18 months.
So before accepting any offer on your property make sure that your agent has fully checked the chain and that they know who is involved and to what timescales all parties are working.
It’s not just about the price!
If you are considering an offer and could do with some advice feel free to drop me a line at firstname.lastname@example.org or call me on 01489 579009
Jane Earley MARLA MNAEA
Robinson Reade Ltd