With a Stamp Duty holiday and only a few months of the existing Help To Buy scheme remaining, there has never been a better – or savvier – time to get onto the property ladder.
Let’s break down three reasons why buying a property right now could be a smart move and a win all round for your finances.
Stamp Duty goes on holiday
In July, the government announced that until April 2021, buyers wouldn’t have to pay any Stamp Duty for a property up to the value of £500,000.
Before the Chancellor’s announcement on Stamp Duty, the existing policy already helped first-time buyers, who were entitled to relief for the first £300,000 of a property purchase. This meant that a first-time buyer moving into one of our apartments priced at 357,500, would pay stamp duty on the remaining £57,000 – equating to £2,875.00 to be paid during the completion phase. Those already on the property ladder would have needed to pay £7,875.00 for the same apartment priced at £357,000.
The good news is that these costs have now been temporarily scrapped! Stamp Duty is now on holiday until next Spring so anybody buying a property within the cap of £500,000 will save themselves a healthy sum.
It’s important to highlight that there will still be a Stamp Duty rate of 3% for those purchasing additional dwellings at this price point, but if you’re simply moving home or buying for the first time, you don’t have to pay a thing!
Narrow window for Help To Buy
Since launching seven years ago, the government-backed Help to Buy scheme has helped thousands of people progress up the property ladder. Used as a helping hand for buying a first property, or making a second property more affordable, the scheme has been a welcome boost for countless property hunters opting in.
The regular, national Help To Buy: Equity Loan scheme, sees the government lend you up to 20% of the cost of your new home. However, there was an additional bonus for London buyers in 2016, when the scheme’s upper loan limit was raised from 20% – 40% for all buyers in London boroughs… great news! This has enabled thousands of London buyers to secure a home worth up to £600,000 with just a 5% deposit. 40% of the property value is provided by the loan, and the rest is made up by the mortgage lender.
BUT – the current scheme is set to end by April 2021 when the government will restrict the initiative to first-time buyers. So for those hoping for a boost when purchasing their next property, it’s essential they act quickly to avoid missing out.
To find out more about the scheme, take a look at our Help to Buy calculator to find out how it works. We’d also recommend visiting the official London Help to Buy scheme website for additional information, run by the government-appointed Help to Buy London agent.
Viewings led by you.
If you’re ready to take a look around your dream apartment, the good news is that thanks to creative techniques developed during lockdown, you can now choose whether you’d prefer to tour in person or at home with the power of technology.
We now have virtual viewing technology at Leon House making it possible to walk through the apartment online. You can browse at your own pace, zoom in on those finer details, and then talk to our team remotely about the design and specifications.
Fancy coming to see us? For buyers who are now able to venture out, we’ve introduced a number of stringent measures so that we can welcome visitors safely. Find out more about the different ways to view here.
We know that the above measures are making dream properties a reality for many buyers. So while deciding to buy a property is one of the safest investments you can make, getting onto the property now – with the current Help To Buy scheme and Stamp Duty holiday thrown into the mix – could turn out to be incredibly prudent.
To find out more about our apartments at Leon House, get in touch with our team today to organise a viewing in person or online. Want a sneak peak? Have a look at our Leon House gallery to see this stunning building for yourself.