Shockwaves were felt through the property industry, when the government announced in the Autumn statement, changes to the amount of stamp duty payable on additional properties purchased.
This means most landlords buying an investment ( there are few exemptions) will have to pay an additional tax levy from the 1st of April.
The Treasury has a consultation on the reforms that closes on February 1st 2016 after which the new laws are highly likely to be introduced as part of the budget.
The change, which aims to free up housing for buyers, means Buy-to-let landlords are set to be hit with a controversial extra 3% stamp duty charge.
This means anyone purchasing a 2nd property over the value of £40,000 from the 1st of April will have to pay an additional 3% stamp duty, on top of the band of stamp duty already in place. The proposed higher rates will be 3 percentage points above the current residential rates, including the 0 per cent band and will be charged on the portion of the value of the property that falls into each band. If you complete on a purchase prior to the 1st April, you will not be hit by any changes, but time is very much of the essence to enable this to happen.
Bill Keighley head of our Financial services commented "Some higher value areas are seeing a surge at the moment and I would expect investors to look more towards the lower priced areas as the seek better value post April if legislation changes. For sellers, securing a buyer now would negate an investors worries.
Regarding the Ltd Co applications rising as buyers look to purchase in company names to avoid any stamp duty rises, this was to be expected for those with large tax bills but for the regular basic rate tax payer, the cost of mortgages for Ltd Companies is a lot higher so this would probably negate any possible tax savings. Certainly as an investor there is a lot to consider and sound advice is a must"
We have a number of motivated vendors who are offering a fantastic discount on their homes for a early completion, which when coupled with the likely savings on stamp duty make these properties a highly attractive investment proposition. For our latest below market value list get in touch with one of our offices in the first instance.
We also have our 1st auction of the year at the beginning of March at the John's Smiths stadium Huddersfield which will enable buyers to complete on those properties before any likely changes to the stamp duty levy. Our team of highly experienced staff are happy to discuss any aspect of buying or selling with you, just get in touch!
Selling homes in Yorkshire since 1958, the Bramleys way.