Stamp Duty holiday could benefit Buy to Let investors
In July, The Chancellor announced a Stamp Duty holiday for all purchases under £500,000 in England and Northern Ireland. You can find out more about the Stamp Duty holiday here. The potential to save up to £15,000 on purchases, has without a doubt stimulated the market*. Adam Nanson, Managing Director at Your Mortgage Expert comments on how this stamp duty holiday could also benefit buy to let investors.
“If someone is purchasing an additional property in England and Northern Ireland they will still have to pay the 3% additional property rate. By additional property, I mean someone who already owns their residence and/or a buy-to-let and is buying an additional property. However, the stamp duty holiday will still apply to the original Stamp Duty Rate meaning there is still a benefit for Buy to Let investors.
“I’ll provide you with an example of someone buying an additional property in England and Northern Ireland. Prior to July 2020 the Stamp duty payable on a £300,000 additional property would have been £14,000. This includes the £5,000 standard stamp duty plus the £9,000 additional property rate. However, under the new changes the stamp duty payable will only be £9,000, representing a saving of £5,000.”
Please find below a table for more information:
Stamp duty threshold in England and NI (from 8th July 2020)
|Property Value||Stamp duty rate||Additional property
rate (eg: Buy to Let)
|Up to £500,000||0%||3%|
The next £425,000
The next £575,000
The remaining amount
With savings such as these, now could be an ideal time to purchase a property to rent out. However, at the moment, the Stamp Duty holiday is set to end on 31st March 2021. Which means that those looking to invest in an additional property don’t have long to take advantage of any potential Stamp Duty savings. The benefit for buy to let investors is therefore only for a few more months at the time of writing.
At Your Mortgage Expert, we can access hundreds of different mortgages from a wide range of lenders all under one roof. Fixed rates, trackers, buy to let – we have access to a huge range some of which might not be available to you directly. We will take the time to understand your circumstances and will provide tailored advice to help you get the most suitable option for you.
For more information on advice on Buy to Let mortgages, contact my team on 01722 322468 or visit our website www.your-mortgage-expert.co.uk. We will help you understand how this stamp duty holiday could also benefit buy to let investors.
The information contained within this article was correct at the time of publication. It is intended for information only and does not constitute advice. TenetLime cannot be held responsible for information that was correct at the time of publication but subsequently changes or goes out of date due to changes in legislation. For further information, contact Your Mortgage Expert on 01722 322683.
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