With the upcoming stamp duty changes, we understand that a quick turnaround of offers will be more important than ever for your Buy to Let purchase clients and we continue to work hard to produce offers.
What is changing?
In his Autumn Statement, the Chancellor announced an extra 3% on Stamp Duty Land Tax (SDLT) for customers buying an additional residential property. The Scottish Government has also confirmed it will introduce the higher rates on Land and Buildings Transaction Tax (LBTT). The new rates come into effect on 1 April 2016 and will apply if:
- Your client owns two or more residential properties at the end of the day of transaction; AND
- Your client is not replacing their main residence.
The additional rates cover Buy to Let purchases, as well as second homes.
For your clients targeting a March completion:
1. We are working hard to turn as many applications into offers as possible. Please ensure all cases are fully packaged to help us process the application and produce an Offer of Loan as quickly as possible.
2. Your client should ask their conveyancer for regular updates and ensure that they are working towards a pre-April completion.
3. It is highly unlikely that any new purchase applications submitted will complete before the proposed Stamp Duty changes come into effect and we would recommend you set expectations with your clients accordingly. Please note that we are unable to escalate any new applications to be fast tracked through our standard process.
If you would like any further information, talk to your dedicated Business Development Manager or visit the website.
