Q My wife and I are buying a flat for just over £250,000. We’ve realised that this means we will end up paying a stamp duty of three per cent of the price – more than £7,500. If the property was only a little bit cheaper, we would be paying one per cent. Is it worth making a lower offer to try to save the cost of the stamp duty?
A As you’ve realised, stamp duty can make a big difference to the cost of buying a home – particularly in the bracket you’ve just mentioned. The amount of duty payable jumps from one to three per cent at the £250,000 threshold, and it can mean a fee of several thousand pounds more.
It’s unusual to find properties very close to this price, as most estate agents are aware of the situation. Unfortunately, so is the Inland Revenue, and they will pay very close attention to the terms of sale for properties priced close to the threshold.
If the property is within a few thousand pounds of the £250,000 mark, making a lower offer may be an option. Other interested buyers are likely to try the same thing, however, so it is important to negotiate any lower offer you do make intelligently.
Another option is to explore exactly what it is you’re buying. Often fittings like carpets or large pieces of furniture are included in a property sale. It is possible to arrange for these items to be sold at the same time but separately – with a corresponding saving on the price of the property. Obviously the cost of these items must be realistic.
Q I need to sell my flat and was hoping for a quick sale. I’m a leaseholder, and I’ve heard that these sales can sometimes take longer. Is there anything I can do to help speed things up?
A There’s never any guarantee that a sale will proceed quickly, but there are certainly things you can do to help it along. There are two separate issues here – the first is finding the right buyer and the second is helping your solicitor to deal with the legal side.
You can help find a buyer by making the most of the property’s assets and choosing the right estate agent. Make certain your flat is ‘ready to view’ by giving it a good clean and clearing clutter. Look around your local area for estate agents that handle properties similar to yours, and make certain the details you give them about your flat are complete and accurate. If your flat takes more than a month to sell consider moving to another agent or opting for joint agency.
From a legal standpoint, transactions will take longer for a leasehold property if your solicitor has to wait for documents about the freehold. Although there may be nothing you can do to avoid this, you can help your solicitor by getting together what documents you can get hold of. This would include a copy of your lease, property insurance details and copies of any receipts for rent and service charge payments. Have your freeholder’s and management agent’s details to hand. Your solicitor will be able to move ahead much more quickly if this information is readily available.