Home-buyers hoping to benefit from the stamp duty holiday may need to act by the start of November, analysis suggests
Home-buyers hoping to benefit from the stamp duty holiday may need to get the ball rolling by the start of November, analysis suggests.
The stamp duty threshold on home purchases in England and Northern Ireland was temporarily raised to £500,000 in July and will remain there until 31 March 2021.
That effectively gives a £15,000 tax discount to anyone buying a home worth £500,000 or more and smaller amounts off to people buying homes worth more than £125,000.
But despite running until March, research from Legal & General Mortgage Club found those who need to sell their home and find a new property may need to get their skates on to allow enough time to complete their housing transaction.
After speaking to property professionals, it estimates a typical home-buying timeline could be up to 15 weeks currently – or up to 17 weeks for buyers with more complex requirements.
Mortgage applicants with complex backgrounds, such as those with impaired credit histories or who have been on furlough, are particularly likely to find they have a wait to secure a mortgage offer.
Bearing in mind the Christmas holidays and any potential further coronavirus restrictions that may cause further delays to the process, buyers may need to start their search by 1 November to make sure they have sufficient time to take up the stamp duty holiday, Legal & General Mortgage Club suggested.
Kevin Roberts, director, Legal & General Mortgage Club, said: Those wishing to take advantage of the holiday will need to plan carefully to avoid missing the March 2021 deadline, particularly if they have their own property to sell first.
He said mortgage advisers can help buyers to create a plan as they understand how to navigate the ongoing changes.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.