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Archive for the: Conveyancing category

Stamp Duty on Second Homes

Posted by on February 20th 2017 in Blog Posts, Conveyancing

Stamp Duty on Second Homes

What is Stamp Duty Land Tax?

Stamp Duty Land Tax (‘SDLT’) is payable to H M Revenue & Customs where chargeable consideration is given in return for property or land – this is not limited to purely monetary consideration. 

SDLT on main residence:

In general, for residential property purchases, SDLT is payable at the following rates on your MAIN home or residence:

  • Up to a price of £125,000.00: 0% of the purchase price
  • The next £125,000.00 (the portion from £125,001.00 to £250,000.00): 2% of the purchase price
  • The next £675,000.00 (the portion from £250,001.00 to £925,000.00): 5% of the purchase price
  • The next...

New Leasehold Houses: The Trap

Posted by on February 2nd 2017 in Blog Posts, Conveyancing

New Leasehold Houses: The Trap

When a buyer purchases a freehold property, they own the property outright, including the land it lies on. The purchaser of the freehold property is responsible for maintaining the property and the land.

With a leasehold property, a purchaser enters into a lease of the property with the freeholder for a defined period of time. In respect of leasehold houses, the term is usually between 250 and 999 years. In theory, when the lease ends, ownership returns to the freeholder. However, in reality this rarely happens as leaseholders have legal rights to extend their lease term or to purchase their freehold.

As...