What is Stamp Duty?
Stamp Duty Land Tax (SDLT) must be paid if you buy a property (or land) that costs above a certain amount in England or Northern Ireland.
How much do I have to pay?
If you are a first-time buyer in either England or Northern Ireland, you will not pay any Stamp Duty if your property is worth £300,000 or less. This can save you up to £5000! However, if your property is above this threshold, then you will not qualify for relief and will have to pay the standard Stamp Duty rates. In this circumstance, you can work out how much tax you will need to pay using the online calculator. https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
How do I pay Stamp Duty?
If you are a first-time buyer purchasing a property over the £300,000 threshold, the payment of your Stamp Duty will typically be taken care of by your solicitor. It is still your responsibility to ensure that this has been done.
How does joint ownership affect Stamp Duty?
If you are a married couple who are jointly buying their first property, you can still benefit from a reduced rate of Stamp Duty. If you are not married, your Stamp Duty will be reduced if the only individual that is named on mortgage deed is a first-time buyer.
There are other factors to consider with this kind of purchase. Mortgage deeds with more than one name still only facilitate a £5000 maximum saving. The amount of money that a lender is willing to lend may also be affected by a mortgage application with a single name, as it is always based on that person’s income. You should also be sensible about considering the prospect of what would happen if you were to split up, as if the property is in one name only, yourself or your partner may have no legal entitlement.
If you’re a first-time buyer looking for property in Swindon, do not hesitate to contact Moovahome. We will do everything we can to help find your dream home.