Contact one of our advisors now Call 0800 088 6004

Home Buyers Hedging Their Bets

Reasons to choose Wilson Browne

Recent research from Rightmove shows that it now takes around 126 days from the time a house offer is accepted until legal completion.

Consequently, with just 72 days to go until the end of the stamp duty holiday deadline, it’s looking increasingly likely that many homebuyers will miss out on the Stamp Duty Land Tax break.

With many campaigns emerging to persuade the Chancellor to extend the deadline from all sides; the media, estate agents, and conveyancers, there has been no statement from the Government as yet.

Sadly there are still a huge number of families stuck in a logjam caused by a mini-boom in the property market, mortgage providers working from home, delays in legal searches, reduced capacity in conveyancing, and employees balancing work with homeschooling.

Savvy home buyers that have factored the tax savings into their budget calculations are now thinking of other ways to meet the tax cost.

One option is a bridging loan allowing a buyer to “break the chain” and proceed independently of their sale, the downside, it is expensive borrowing. Not usually recommended for ordinary house purchases these could be a solution for many purchasers come the end of March to complete their purchase and refinance later. This can be a risky option however and the costs can be high which is likely to counteract any stamp duty savings.

Jenny Woodruff, Head of Conveyancing commented; “All conveyancers are doing their utmost to ensure homebuyers can meet the deadline where possible but there will be occasions where timescales are increased due to the current pressures on the system. I would urge homebuyers to really consider the best option for them and consider the possibility that the deadline will not be met”.

For more information about our Residential Conveyancing team click here or get an online quote for conveyancing services here.

 

Jenny Woodruff

Posted:

Jenny Woodruff

Partner

Jenny is a Partner and head of the Residential Conveyancing Team. She has extensive knowledge of the conveyancing process, including: dealing with freehold and leasehold sales & purchases; new build purchases; remortgages; transfers of equity; shared ownership; help to buy transactions & general property advice.