With only five weeks to go before a hike in stamp duty for buy to let property purchases there has been a massive increase in mortgage lending, the highest level in nine years, for buyers who want to get in before the 3% rise.<\/p>\n
Hiromi Kuda<\/strong>, a property legal specialist at the award winning and leading regional law firm RRP Associates says \u201cFor landlords who want to buy a rental property, or someone wanting to purchase a second home, they only have until April 1st<\/sup> to avoid the soaring cost of stamp duty.<\/p>\n \u201cProperty investment still tends to offer much better value as a long term saving option rather than risking shares or poor returns in ISAs and savings accounts. Only fairly recently people were given access to their pension pots and while some may have been enjoying themselves and \u2018spending the \u2018children\u2019s inheritance\u2019, most are investing for their own and their families future and this is where a property purchase looks rock solid.<\/p>\n \u201cWhile it\u2019s true that you can never guarantee that property prices will continue to rise, and certainly I am sure they will never again be as much as they have been over the past 10-20 years, especially in London and the South East, with such a national shortage of new houses being built I would predict that the value of your home will not decrease and is likely to prove a very wise buy.\u201d<\/p>\n Adil continues \u201cAlthough lenders vary in their criteria for loaning money to potential landlords, the market remains buoyant and I think it is likely to continue to do so for a long time to come, despite the stamp duty increase.\u201d<\/p>\n The last Stamp Duty changes were in 2014, when the threshold was dependent on the price of the property, which fell into these different bands:<\/p>\n Band \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Rate<\/strong> From April 2016 there will be a new Buy to Let\/second home rate as well as the standard rate:<\/p>\n Band\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Standard Rate \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Buy to Let\/second home rate \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/strong>\u00a30-\u00a3125,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3% <\/p>\n The new proposal will affect anyone owning a second property that isn’t their main residence and buying another, or replacing the one they don’t live in.<\/p>\n This means if you already own a portfolio of buy-to-let properties, or have a second home, but plan to buy yourself a new home to live in and sell your old one then you will not have to pay the extra stamp duty.<\/p>\n Key points to note are<\/strong>:-<\/p>\n In some cases for people who are buying and selling, if their sale is delayed it means they will probably complete on their purchase before the sale goes through.\u00a0 The Stamp Duty on the purchase will be payable at the Buy to Let rate, but provided the sale completes within 18 months of the purchase, HMRC will refund the additional Stamp Duty paid.<\/p>\n Another proposal is to reduce the 30 day period within which to submit the return for Stamp Duty to 14 days Buy to Let investors.<\/p>\n Final details of the calculations are expected on 16 March 2016 when the next budget will be announced.<\/p>\n","protected":false},"excerpt":{"rendered":" With only five weeks to go before a hike in stamp duty for buy to let property purchases there has been a massive increase in mortgage lending, the highest level in nine years, for buyers who want to get in before the 3% rise. Hiromi Kuda, a property legal specialist at the award winning and…<\/p>\n","protected":false},"author":2,"featured_media":2173,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2,43,44],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n
\nUp to \u00a3125,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 0%
\n\u00a3125,001 to \u00a325,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2%
\n\u00a3250,001 to \u00a3925,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a05%
\n\u00a3925,001 to \u00a31,500,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010%
\n\u00a31,500,001 +\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12%<\/p>\n
\n\u00a3125,001 to \u00a3250,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%
\n\u00a3250,001 to \u00a3925,000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 8%
\n925,001 to \u00a31,500,000 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010% \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a013%
\n\u00a31,500,001 +\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12%\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15%<\/p>\n\n