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| Version 1 | Version 2 |
|---|---|
| Landlords in last-minute rush to beat stamp duty rises | Landlords in last-minute rush to beat stamp duty rises |
| (35 minutes later) | |
| Landlords, estate agents and solicitors are in a last-minute rush to complete property deals ahead of a stamp duty rise that takes effect on Friday. | Landlords, estate agents and solicitors are in a last-minute rush to complete property deals ahead of a stamp duty rise that takes effect on Friday. |
| Anyone buying a home that is not their main residence will face a 3% Stamp Duty surcharge. | |
| In Scotland, the equivalent tax - the Land and Buildings Transaction Tax (LBTT) - is also being up-rated. | In Scotland, the equivalent tax - the Land and Buildings Transaction Tax (LBTT) - is also being up-rated. |
| From midnight on Thursday the duty on a property sold for £200,000 will rise from £1,500 to £7,500. | From midnight on Thursday the duty on a property sold for £200,000 will rise from £1,500 to £7,500. |
| "It's been very chaotic. But the real problems will be today," said Rob Hailstone, of the Bold Legal Group. | "It's been very chaotic. But the real problems will be today," said Rob Hailstone, of the Bold Legal Group. |
| The problems have been compounded by the fact that some of the fine detail was only announced in the Budget just over two weeks ago. | The problems have been compounded by the fact that some of the fine detail was only announced in the Budget just over two weeks ago. |
| "It's been ridiculously busy. Buyers have been saying they want to rush it through, because they don't want to pay the surcharge," said Mr Hailstone. | "It's been ridiculously busy. Buyers have been saying they want to rush it through, because they don't want to pay the surcharge," said Mr Hailstone. |
| 'Bottleneck' | 'Bottleneck' |
| While the theoretical deadline is midnight, the practical deadline is late on Thursday afternoon, when the banks close. | While the theoretical deadline is midnight, the practical deadline is late on Thursday afternoon, when the banks close. |
| Sales can only be completed when the money comes though from the lender. | Sales can only be completed when the money comes though from the lender. |
| "It's a busy crazy day," said Martin Baum, the President of the National Association of Estate Agents. | "It's a busy crazy day," said Martin Baum, the President of the National Association of Estate Agents. |
| "We've all got a bottleneck, and a huge amount of deals before the deadline. I've heard of estate agents and conveyancers staying open till 10pm, and then opening again at 5am this morning." | "We've all got a bottleneck, and a huge amount of deals before the deadline. I've heard of estate agents and conveyancers staying open till 10pm, and then opening again at 5am this morning." |
| The stamp duty surcharge will affect landlords purchasing buy-to-let property, or anyone who is buying a second home. | The stamp duty surcharge will affect landlords purchasing buy-to-let property, or anyone who is buying a second home. |
| But many ordinary buyers are involved in chains which involve an investor somewhere along the line - so they too have been caught in the chaos. | But many ordinary buyers are involved in chains which involve an investor somewhere along the line - so they too have been caught in the chaos. |
| Earlier this week, the Bank of England announced plans to subject landlords to a series of new affordability tests. | Earlier this week, the Bank of England announced plans to subject landlords to a series of new affordability tests. |
| Their personal income and expenditure could be scrutinised by lenders before they decide to give them a mortgage. | Their personal income and expenditure could be scrutinised by lenders before they decide to give them a mortgage. |
| Landlords may also have to prove that they could afford a rise in borrowing costs. | Landlords may also have to prove that they could afford a rise in borrowing costs. |