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Blog | butters john bee Estate & Letting Agents

Mar 12, 2024 Selling Your House at Auction

When you see residential properties going under the hammer on TV, you might wonder if that's really how house auctions work. Why do people opt for this method of selling? Auctioning a house involves a more intricate process than meets the eye, yet it offers homeowners the potential for a quicker sale. Let's delve into what it entails to buy and sell at property auctions, the associated costs, benefits, drawbacks, online property auctions, and whether it's the right choice for you if you're considering selling your house this way. Understanding House Auctions A house auction is a meticulous process that unfolds over several months. An auction house compiles a marketing catalogue, typically published two to three weeks ahead of the auction date. Prospective buyers can arrange viewings of the auction properties and even conduct early-stage surveys to assess any structural issues. Open houses may be scheduled, and buyers can request a comprehensive legal pack for deeper insights into the legal particulars of the property. Each property is assigned a guide price in the catalogue, representing its estimated market value. Sellers can set a reserve price during the bidding process, which is the minimum price they are willing to accept and is often kept confidential from potential buyers. Is Auctioning Your House Feasible? Not every property is suitable for auction. However, if your property might be challenging to sell on the open market, an auction could be a viable solution. For instance, a rundown property might deter private buyers but attract investors or developers looking for opportunities. The Auction Process If you choose to auction your house, you'll need to select a reputable auction house to handle the sale. Opt for an auctioneer who is a member of the National Association of Valuers and Auctioneers (NAVA) for adherence to industry best practices. Auctions can be conducted in-person or online, with online auctions gaining popularity due to convenience. On auction day, potential buyers receive bidding numbers for identification during the process. Those unable to attend can submit proxy or online bids. The winning bidder typically pays a 10% deposit on the sale price on the day of the auction, with the remaining 90% due within 28 days. Costs Involved in Selling at Auction It's important to note that auction fees can be substantial. While costs are transparent, sellers should carefully consider whether auctioning their house is cost-effective. Here's what you may expect: Entry Fee: A flat fee paid to the auction house for listing your property. Auction Commission: Typically around 2.5% of the sale price plus VAT. Auction Legal Pack: Includes essential legal details prepared by your solicitor. Conveyancing Fees: Charges for conveyancing services upon sale completion. Legal Fees: Standard solicitor administration costs. Stamp Duty and Other Taxes: Consideration for buyers regarding purchase costs. Online House Auctions Online property auctions have surged in popularity, especially amidst social distancing measures. They can run continuously or as scheduled events. Post-Auction Scenarios If your property doesn’t sell at auction, it can still be sold post-auction through negotiation with interested buyers. Is Auctioning Right for You? Consider auctioning your house if: You need a quick sale. Your property requires significant renovation. There's commercial demand for your property. Your property has niche appeal. Benefits of Property Auctions Chain-free sale. Completion within 28 days. Ideal for properties needing renovation. Potential for competitive bidding. Drawbacks of Property Auctions Liability for fees even if the property doesn’t sell. Higher auctioneer commissions. Immediate move-out required upon sale. Advice for Selling at Auction Set a realistic reserve price. Ensure accurate property listings. Choose a reputable auction house experienced in selling your property type. Present your property in its best condition for viewings. Get an Initial Market Appraisal Today If you're considering selling your property and auctioning isn't the right fit, consider butters john bee for a seamless sale process. Our property professionals can assist you in achieving the right price at the right time. Contact us for a free initial market appraisal and discover our streamlined selling process today! [form id="36cba0b0-7466-11ee-afc4-12cffd93632d"]

Mar 4, 2024 Understanding Property Valuations

Property valuations play a crucial role beyond just preparing to sell a property, and they are not exclusive to estate agents. Here, we delve into the significance of property valuations, their cost, and the different types available. What is a Property Valuation? A property valuation is an assessment or estimation of a property's worth. Typically conducted by estate agents, it provides homeowners with an idea of their property's market value, essential for determining a suitable sale price. However, property valuations are also required for various purposes, such as probate or insurance assessments. Who Conducts Property Valuations? Property valuations are usually carried out by estate agents and surveyors. Estate agents provide valuations for properties being listed for sale, while surveyors handle mortgage valuations, probate valuations, and 'Red Book' valuations. Difference Between Property Valuations and Mortgage Lender's Valuations Property valuations focus on the homeowner's interests, anticipating a potential sale, whereas mortgage lender's valuations serve the lender's interests, ensuring the property's value supports the loan amount. Cost of Property Valuations While some estate agents may charge for valuations or require subsequent use of their services, others like butters john bee offer free, no-obligation valuations conducted by experienced professionals. The cost of other valuations, such as chartered surveyors' valuations or HomeBuyer Reports, may vary. Types of Property Valuations Probate Valuations Conducted to assess a deceased person's property for estate valuation and tax purposes. Red Book Valuations The most rigorous appraisal following RICS (Royal Institution of Chartered Surveyors) standards. Why and When Would You Need a Property Valuation? Selling a Property Essential to determine a reasonable listing price before putting your property on the market. Buying a Property Although not mandatory, mortgage valuations during property purchases highlight concerns for mortgage lenders. Resolving Disputes Required in disputes like divorce settlements or landlord-tenant disagreements over rental rates. Importance of Property Valuations An accurate valuation ensures optimal pricing for a property sale, considering factors like local property trends, property condition, and national housing market performance. Moreover, valuations aid in resolving disputes, protecting investments, and determining appropriate insurance coverage. Getting a Property Valuation Arrange a valuation appointment with an estate agent to initiate the valuation process. Online vs. In-Person Valuations While online estimations are available, a physical inspection by an experienced agent yields a more accurate valuation considering specific property features. Steps During a Property Valuation During a valuation, agents assess property condition, unique features, and surrounding amenities to determine value. Preparation for a Valuation Preparing for a valuation differs from preparing for a viewing, focusing on highlighting property potential rather than perfection. Duration of a Valuation Valuation times vary based on property type and unique features, typically lasting 15-20 minutes. Post-Valuation Process After a valuation, agents provide a valuation figure and guide homeowners through subsequent steps if they decide to sell. Conclusion Property valuations are instrumental in pricing properties accurately, resolving disputes, and ensuring financial security. Contact butters john bee for a free, up-to-date property valuation by experienced professionals to understand your property's market value and make informed decisions. butters john bee can assist you in buying or selling property effectively. Schedule your free valuation today to kickstart your property journey. [form id="36cba0b0-7466-11ee-afc4-12cffd93632d"]

Jul 16, 2023 Understanding Mortgage Valuations and Remortgage Valuations

Obtaining an accurate valuation for a property you intend to purchase or remortgage is crucial for a seamless transaction. In this comprehensive guide, we delve into what mortgage valuations entail, how they operate, and their associated costs. What is a Mortgage Valuation and How Does it Work? A mortgage valuation is a survey conducted by a mortgage lender to ensure that the property's value aligns with the proposed purchase price. This survey is essential as it determines whether the lender will approve the mortgage funds required to complete the purchase. The same process applies when you are remortgaging a property you already own—a remortgage valuation verifies the property's current value against the submitted documentation. While mortgage valuations primarily serve lenders, they also provide buyers with insights into whether they are paying a fair price. It's important to note that a mortgage valuation differs from a house valuation, focusing solely on the property being purchased and serving the lender's interests. Mortgage valuation surveys can be conducted virtually (desktop valuation) or without a detailed inspection (drive-by valuation), depending on the lender's discretion. Understanding Remortgage Valuations A remortgage valuation mirrors a mortgage valuation but is conducted as part of the remortgaging process. This valuation establishes the property's current value when seeking additional borrowing against an existing property or switching to a new mortgage provider. Comparing Mortgage Valuations and Home Surveys Mortgage valuations should not be confused with property surveys. While surveys provide detailed insights for property buyers, mortgage valuations are specific to lenders, confirming that the property's value justifies the mortgage amount. Cost of Mortgage Valuations and Remortgage Valuations The cost of mortgage valuations is typically based on the property's price and ranges from £150 to £1,500. Some lenders offer this service for free. Remortgage valuations are often included in remortgage fees or paid by the lender, costing between £300 to £500, depending on the property's value. Preparing for a Mortgage Valuation or Remortgaging Valuation Preparation for a mortgage valuation is minimal. Typically, the survey assesses whether the property's purchase price aligns with its value. Ensure you have any relevant property paperwork handy, such as New Home Warranties or External Wall System forms. Drive-by and Desktop Valuations Some mortgage valuations are conducted without a physical inspection. Drive-by valuations involve visual assessments from a distance, while desktop valuations rely on available data and tools like the Automated Valuation Model (AVM) to estimate property values. Factors Influencing Mortgage Valuations Several factors can affect a property's valuation, including non-standard construction, structural defects, dampness, subsidence, fluctuations in the property market, property location, size, layout, and type. Dealing with Variances in Valuation If a mortgage valuation is lower than the agreed sale price, renegotiation with the seller or challenging the valuation with your lender are potential options. In such cases, lenders may adjust the loan amount or require a higher deposit to proceed with the purchase. Consulting with Just Mortgages For expert advice on mortgages and to explore your options, reach out to our mortgage partner, Just Mortgages. Understanding your borrowing capacity and initiating the mortgage process early can expedite your property purchase. For further inquiries or to discuss your mortgage requirements, contact Just Mortgages today.

Apr 5, 2022 jargon buster

Here's our handy guide for the terms you need to know when dealing with property Think moving house is stressful? Then all of the added jargon that goes with the house buying and selling process can make it quite daunting. Our handy guide details some common terms and what they mean. A Acceptance If you wish to accept a lender’s mortgage offer, this document will need to be signed and returned to the lender. Amortisation The gradual elimination of a liability, for example, a mortgage through regular payments over a set time period or the amount paid by way of capital or principle repayments on a loan annually. Annual Equivalent Rate (AER) A notional rate that is often quoted on interest paid on savings and investments. It aims to demonstrate what your interest return would be if the interest was compounded and paid annually instead of monthly (or any other period). Annual Percentage Rate (APR) The APR is a figure that is used to compare different mortgages. Defined by law, it includes repayments on the loan plus any fees such as booking, arrangement or redemption fees. The APR shows the true cost of borrowing, and should appear on all mortgage illustrations and quotes. Applicant The name given to a potential purchaser, often used by estate agents/auctioneers. Appraisal Value Property value as estimated by a surveyor. Appreciation Increase in property value as a result of market condition changes. Arrangement Fee This is a charge levied by the lender to cover the costs of administering and reserving the funds for certain types of mortgage. May be paid separately or added to the loan amount. Assured shorthold tenancy (ASTs) This is the most common form of tenancy.  A tenancy can only be an AST if you are a private landlord or housing association, the tenancy started on or after 15th Jan 1999, the property is the tenants' main accommodation and you do not live in the property.  All of these must apply. Auction A means of selling a property whereby it is listed at an auction and if the property does not reach the reserve price then it is not sold. If it does, then when the auctioneer's hammer falls that represents an exchange of contracts and the successful bidder is legally obliged to pay a 10% deposit and sign a memorandum of sale before leaving the auction. Completion usually takes places 28 days later and the buyer is not in a position to re-negotiate any of the stipulated terms and buys the property "as seen". Structural surveys and searches would have to be made in advance by a bidder. B Base Rate The lowest rate of interest a bank will charge when it lends money, used as a benchmark to set interest rates for borrowers. This rate is set by the Bank of England and is reviewed several times a year. Lenders will charge borrowers a margin above the base rate. Bridging Loan A loan that is used to cover the overlap between the purchase of a new property and the sale of an old one. This will be a short-term loan. Building Survey Full inspection of the property, carried out by a chartered surveyor. A detailed report will follow highlighting the condition of the property and any issues/defects. Buildings Insurance An insurance policy that pays the cost of repair or rebuild in the event of your property being destroyed or damaged. This needs to be purchased before completion of your new property. Buy-to-let Mortgage A type of mortgage specifically for those purchasing a property with the intention of letting the property out. C Capital Amount of money either put into buying a property or the deposit placed on a property. Capital Appreciation Growth in the value of a property over time. Capital Gains Tax A tax on profits above a fixed level made from the sale of financial assets such as property or shares. Capped-rate mortgage A mortgage that sets a maximum rate on interest that a lender can charge for a specified period. Chain Where a buyer is reliant on the completion of sale of their current property before they can complete on a purchase of a new property. Commission An estate agent’s fee for selling the property. Comparative Search The search that looks at sale values for similar properties in the same area as your property. Completion Date The date of which the money is transferred from the buyer’s to the seller’s solicitor. The buyer will also become the legal owner of their new property on this date. Conditions of Sale Details that set out the rights and duties of the seller and buyer. Contents Insurance Insurance that covers the contents of your home such as your furniture, carpets, equipment like laptops and televisions. Conveyancing The legal process surrounding the transfer of ownership of a property from a seller to a buyer. Covenants The rules and regulations governing a property – these are contained in its Title Deeds or Lease. D Deeds The legal documents that prove ownership of a property. Deposit Initial funds used as a payment upfront to a bank/financial institution in the purchase of property. Also known as mortgage deposit. Detached A property that stands alone, and therefore not attached to another property. Disbursements Fees paid by the solicitors on the behalf of a buyer. Examples include land registry and search fees and stamp duty. Also known as Legal Fees. Discharge Fee Paid to some lenders for releasing their hold over a property once you have paid off you loan. This often occurs if you pay off your mortgage early before the standard term has run out. However, this is not always the case. Down Valuation Where a lender restricts the amount you can borrow as a result of a surveyors valuation report indicates the property is not worth the sum sought. Draft Contract A preliminary version of the contract drawn up when the sale is first agreed. This is uncorroborated version that will need to be confirmed by the seller’s solicitor and set out the conditions. Draft Transfer A legal document issued by the purchaser’s solicitors setting out the terms and conditions of sale. E Early Repayment Charge A charge issued by the lender as a penalty if a mortgage is paid off within a specific period. Endowment Mortgage Interest-only repayments combined with monthly premiums into an endowment policy. This is designed to pay off the loan at the end of the term. Energy Performance Certificate This certificate measures the energy efficiency of a property using a scale of A to G. It is now a legal requirement to have a valid EPC before a property can be marketed. Equity The amount of money either put into buying a property or the deposit placed on a property which exceeds the amount of any money borrowed against the property. Exchange of Contracts The point at which confirmed and signed (by both purchasers and sellers) are physically exchanged. Both the buyer and the seller are now legal bound to the sale and purchase of the property at the agreed price. F Fixed Rate Mortgage A mortgage in which the interest rate is fixed/set for an agreed term or period of time. Fixtures and Fittings These are the non-structural items included in the purchase of a property. These can include (but not limited to) light fitments, central heating boilers and radiators, bathroom suites, kitchen units, TV aerials and satellite dishes. Flexible Mortgage An arrangement whereby you can increase or decrease your mortgage payments. Freehold Where the owner of a property also owns the land that it is built on. G Gazumping This occurs when a seller accepts a higher offer on a property when they have already agreed on an offer from someone, prior to the exchange of contracts. Gazundering This occurs when a buyer reduced their agreed offer prior to exchanging contracts. An example could be that the buyer has discovered some issues with the property following a survey report that was carried out, and therefore reduces the offer agreed accordingly. Ground Rent A charge from the freeholder to the leaseholder. Guarantor Someone who promises and signs to agree to pay the borrower’s debt or rent is the borrower or tenant defaults. H Higher Lending Charge An upfront, one-off charge to a lender to protect them against the borrower defaulting on the loan. This usually occurs on mortgages that are over 75% of the property value. Houses in Multiple Occupancy A building of three floors or more that is occupied by three of more people. These people live as more than one household but share the use of facilities such as bathrooms and cooking facilities. I Individual Savings Account Mortgage (ISA) Interest-only mortgage linked to an ISA fund, which is designed to pay off the loan at the end of the period. Inflation The rise in prices over time. Interest Charges The charges that banks make on a loan, calculated as a percentage of the borrowed amount. Interest-only Mortgage Now only offered with very strict lending criteria and aren’t available to everyone. A type of mortgage where the borrower only repays the interest on the loan for the duration of its term and repays the full loan amount at the end of the mortgage period. J Joint Tenants A form of ownership of land or property where there are two parties. If one of them passes away, their share of the property will transfer automatically to the remaining party which then gives them full ownership. L Land Certificate This document is issued by the Land Registry to the owner of the registered land as proof of ownership. This land document will include a copy of the register and the plan showing the extent of the land. Land Registry Fee To be paid by a solicitor on behalf of the buyer to register ownership of property with the Land Registry (if freehold). Therefore once you purchase the property, you are the legal owner of the land. Land Search This is where a formal application of an inspection of the Land Registry register. A certificate will be issued to show the current situation of the land in question. Lease The legal document by which the Freehold or Leasehold owner of a property lets the premises or a part of it to another party for a specified length of time. Once this expires, the ownership reverts to the Freeholder. Leasehold Where a person(s) owns a property but only for a set number of years. When the lease expires, the property returns to the freeholder. This is most common with flats; however, houses can also be built on leasehold land. Legal Fees Fees paid by the solicitors on the behalf of a buyer. Examples include Land Registry and search fees and Stamp Duty. Also known as ‘Disbursements’. Listed Building A building which has special architectural or historic interest which is officially listed so that it cannot be demolished or altered without prior local government approval. M Maintenance Charge Also known as service charges. These charges are the cost of repairing and maintaining external or internal communal parts of a building. These costs are charged to the tenant or leaseholder. Maisonette An apartment, usually over one or two floors, which is self-contained and in a larger house. It will have its own entrance from the outside. Mortgage An amount of money advanced by a lender (usually a bank or building society) on the security of a property. This is repayable over a long period of time. Mortgage Payment Protection Insurance designed to pay your monthly mortgage for a limited period if you are unable to work due to illness, redundancy or disability. This is usually for a year. N NHBC Scheme A building guarantee that is available on some new build homes. Under this guarantee, any defects that occur within a specified time after construction are remedied. Negative Equity When a property has decreased in value to below the level for which a loan was secured on it. O Offer The sum of money a buyer offers to pay for a property. Offer of a Loan A formal document approving the mortgage you have requested and detailing the Terms and Conditions that apply. Office Copy Entry The official document from the Land Registry which confirms the ownership of and borrowings against a property. Open House Event A day or period of time of a day where a property for sale is open to a number of applicants to view at the same time. Open Market Value The price a property should be able to achieve where there is a willing buyer and seller. R Re-Mortgage This is the refinancing of a property either by switching a mortgage from one lender to another or by taking out a second mortgage to take advantage of any equity gained by the rise in value of the property. Redemption When a mortgage is fully repaid. Repayment Mortgage A mortgage where the monthly payments are used to repay the interest and reduce the outstanding capital.  This means that each month you’re paying off a small part of your mortgage. Repossession This occurs when a mortgage lender takes possession of a property due to non-payment of the mortgage the property is secured against. Retention Where a lender has the ability to hold back part of a mortgage until certain conditions are met. S Searches A request or enquiry for information about the property held by a local authority or by the Land Registry. Semi-Detached A property which is joined to one other property – this will be a house or bungalow. Service Charge These charges are paid by the owner to cover the cost of providing various services which include (but not limited to) maintenance or repair of the building, communal areas, heating, lighting or security. Share of Freehold Where a limited company owns the freehold on which a property stands and the shareholders of that limited company are the owners of the property. Short-term Tenancy Occupancy of a rental property that starts at one day and can last for a few weeks or a couple of months. Sitting Tenant This refers to a tenant who occupies a rental property when there is a change of landlord or the landlord decides to sell. Sole Agent When the seller has agreed to sell their property through one estate agent only. Stamp Duty A government paid tax to be paid by the buyer on a property. Usually expressed as a percentage of the purchase price and will vary depending on the value of the property. Standard Variable Rate Mortgage lenders standard rate of interest. This can go up or down in line with market rates such as the Bank of England base rate Surveys Inspection of a property and reports that comments of the structural conditions and more depending of the survey of survey you commission. Studio Flat A flat which consists of one room that contains the cooking, living and sleeping areas with a separate bathroom or shower room. T Tenancy Agreement A contract between a tenant and landlord. The tenancy agreement will outline the terms and conditions of the rental agreement. Tenure Conditions on which a property is held, for example leasehold or freehold. Terraced House A property that forms part of a connected row of houses. Title Deeds The legal title documents that prove ownership of a property. These are transferred to the new owner on the sale of a property and a copy is held by the mortgage lender. Title Insurance The insurance policy which a buyer can take out to allow a sale to complete where there is a potential problem with the documentation in proving legal ownership of some part of the land they are buying. Title Search An investigation carried out by a conveyancer or solicitor into the history of ownership of a property. This search will check for liens, unpaid claims, restrictions and any other problems that may affect ownership. Tracker Mortgage A mortgage where the interest charged by a lender is linked to a rate such as the Bank Of England base rate.  This means your payments can go up or down. U Under Offer A status of a property that is for sale and the sellers have accepted an offer from a buyer. This is the status given before the exchange of contracts. V Valuation A basic survey of a property which estimates the value of the property for mortgage purposes. Mortgage lenders will need to see this before lending. Variable Base Rate The basic rate of interest charged on a mortgage. Vendor The seller of a property. Y Yield The income from a property that is calculated as a percentage of its value.

Feb 25, 2022 Tips for Sellers

Once you’ve decided to sell your home, knowing what to do next can be a daunting task. There’s a lot to think about when moving to a new house, so choosing the right estate agent is an essential way to make the process easier. butters john bee has a team of experienced sales negotiators in your area who have expert knowledge about the locality and know what types of properties sell for what price. Our agents have a database of potential buyers and give realistic advice designed to help your move progress. Handing over the sale of your home to us means we do all the hard work for you in terms of showing people round and checking out that they are serious buyers. butters john bee is part of the UK's largest independent estate agency and our customers have access to the latest online marketing tools, including the property portal OnTheMarket.com, plus social media, traditional print advertising and ‘open house events’ to boost buyer interest. Our phone lines are open from 8am to 10pm, seven days a week. Making your home attractive to a buyer Get inside the head of your buyer and think about the aesthetic appeal of your property. Visiting a show home before you sell is a great way to get inspiration and understand how best to market your property. Ensure that the outside of your property is tidy and that the building looks safe and secure. Repainting your windowsills or front door, cutting the grass and putting away unfinished DIY projects can improve your property’s kerb appeal and encourage prospective buyers to venture inside. Make it easy for prospective buyers to see the potential in your property. Decluttering and tidying up rooms creates a blank canvas and helps people viewing your property to imagine themselves living there. Homes sell quicker if a buyer can imagine themselves sitting on a sofa watching the TV, lounging in the back garden, or having dinner at the kitchen table. Staging your home so it appears in its best possible light can also help achieve a successful sale. Removing large or bulky items like a sofa and replacing them with smaller versions helps to make rooms appear more spacious. Hanging mirrors in more confined spaces can also help create the effect that rooms are larger than they appear. Likewise, on darker days simple acts such as turning on lamps and sidelights can create a cosy and enticing atmosphere for prospective buyers to walk into. Ensure all unpleasant smells, like cigarette smoke or blocked drains are banished by fully airing your property and installing air fresheners or diffusers. Consider some home improvements When we value your home, they can also make recommendations for ways you can improve the value. Planning and obtaining quotes for renovations before you sell is always a good idea. Updating a dated kitchen by replacing tiles, units or cupboard doors can help encourage prospective buyers. Kitchens are the focus for many people during a property viewing, and many buyers could be willing to pay more to save themselves the hassle of buying a new kitchen. Similarly, and if your budget will allow, updating the tiles or taps in the bathroom can also help encourage buyers and ensure a speedy sale. If your budget allows, consider adding a garage or loft conversion. According to OnTheMarket, a recent nationwide study found that a loft conversion which added an extra bedroom and en-suite bathroom would add an average of 21 per cent to the value of a property. If this type of renovation isn’t achievable right now, consider having someone draw up the plans for these improvements and, if necessary, obtain planning permission. Know your budget Before you sell, know what you can afford and determine a price range of properties to look at. Find out the outstanding debt on your mortgage, then find out how much more you can borrow and whether you can afford it before you start looking at properties. Notify your solicitor that you plan to sell so they can provide you with the list of things that you need to collect together, which might include: any guarantees for work you have had done on the property including replacement windows or damp-proofing; filling out a form that details what you intend to leave in the property; if it is a leasehold property you will need to prove you are up to date on your monthly maintenance payments. Agree on the sale of your home before you start looking for the next move as you then become an attractive buyer to another vendor. If you’re not planning on buying straightaway, renting can act as a stopgap and reduce the stress of being involved in a long chain. Throughout this process, you’ll need the right legal representation. Howards offers a complete service from conveyancers to mortgage advisers, surveyors and insurance. List of moving expenses Moving is an expensive process, and nothing could be worse than finding your dream house and being unable to make it a reality. We’ve created a shortlist of the things to remember to ensure that you're not making a costly mistake: Your current lender’s fee if you are making an early repayment Legal/solicitor’s fees Estate agent’s fees The cost of an Energy Performance Certificate Removal costs Capital Gains Tax if the property you are selling is not your main home If you’re thinking about selling your property, speak to your nearest branch or request a valuation. If you have questions about your mortgage, or want some advice, take a look at the Just Mortgages website. [form id="d306dece-a95c-11ee-9126-6aee4e67df98"]

Jan 2, 2021 Stamp Duty 2021

From 1 October 2021, the tax holiday on stamp duty rates ended and home buyers in England and Northern Ireland are required to pay on all purchases above £125,000. Residents in Wales, where stamp duty is known as ‘land transaction tax’, are required to pay on purchases above £180,000 after their tax holiday finished 1 July 2021. What is stamp duty? When you purchase a property or land, you are required to pay a form of tax called Stamp Duty Land Tax (SDLT). The amount you pay can depend on the price of the property, the location of the property, whether you’re a first-time buyer or whether you’re a UK resident. What are the prices now? Those that are familiar with the tax rates pre-Covid will recognise the tiers as they return to their original percentages. This means that if you’ve bought a property in England or Northern Ireland from 1 October 2021, you’ll have to pay the following: Property or lease premium or transfer value SDLT Rate Up to £125,000 0% The next £125,000 (the portion from £125,001 to £250,000) 2% The next £675,000 (the portion from £250,001 to £925,000) 5% The next £575,000 (the portion from £925,001 to £1.5 million) 10% If you’ve bought a property in Wales from 1 July 2021, you’ll have to pay the following: Property or lease premium or transfer value SDLT Rate Up to £180,000 0% £180,001 to £250,000 3.5% £250,001 to £400,000 5% £400,001-£750,000 7.5% £750,001-£1.5m 10% £1.5m and above 12% John Phillips, National Operations Director, Spicerhaart and Just Mortgages said: “While the stamp duty holiday has definitely helped stimulate the market, it is by no means the driving force behind the current rush to buy, and once it ends, the market will continue to thrive. “The pandemic has certainly played an important role in this desire for houses. Without hospitality venues and holidays to spend on, those fortunate enough to stay in stable employment have saved at record levels. These increased savings have allowed people to consider moving to a bigger property, or a more desirable location. “What will impact the market more than the end of the stamp duty holiday, is the reopening of pubs, restaurants and international travel. Buying a house will still be a priority for many, but there will be lots of people booking holidays after a year stuck in the UK and savings may be spent on a few weeks in the sun.”