During the Live Budget 2017, we can confirm that stamp duty as of today has been abolished for first-time buyers purchasing properties up to £300,000 while those in higher priced areas with bigger budgets worth up to £500,000 won’t pay any duty on the first £300,000 (to be clarified).
Those who have completed today and have had to pay their stamp duty costs may have the opportunity to claim the money back, although buyers will need to take further advice from their legal representative for more information.
However, there are some limitations to what defines a first-time buyer, which we hope to explain in this article.
So what qualifies as a first-time buyer?
Essentially, anyone who has never owned a property previously, whether it be purchased or inherited.
However, if you are a first-time buyer purchasing with a non-first time buyer, then, unfortunately, you will not qualify for the new first-time stamp duty exemption. To reiterate, you will both need to be first-time buyers.
What does this mean for you as a first-time buyer?
This means a whole bunch of money saved! To put this into perspective, given the previous stamp-duty system on purchasing a property worth £300,000, you would be splashing an extra £5,000.
Following the new changes to stamp duty charges, however, you save 100% of that money. That’s an extra £5000 towards a higher deposit, a new kitchen, a new car or a holiday. So, you have the freedom to save a bit more money.
But, what if I’ve exchanged already but not completed?
Not a problem, the stamp duty charge is a tax payable to the government within 30 days of completion.
Ready to get started on the property ladder?
Now is a fantastic time. Why not give our mortgage advisors a call on 01454 316718 for a free no obligation consultation, or to just discuss your options? With our 25 years of experience, we can advise on the best course of action and find you a great mortgage deal plus there’s absolutely no obligation.