News
Government-backed mortgage indemnity scheme
This scheme, started on 12th March, applies to buyers of new build houses who need large mortgages when expressed as a percentage of the purchase price. Lenders have in recent years been reluctant to lend this much due to negative equity fears, but the government in conjunction with house builders is providing a guarantee/indemnity scheme to cover losses the lender might suffer if it has to repossess the property and sell it for less than the outstanding mortgage amount.
You will have to be purchasing the property to live in yourself as your primary home, be a UK citizen and have at least 5% of the price to put down as a deposit. The housebuilder will provide you with details of the scheme if you qualify.
Local Authority Properties - right to buy
The government has announced increased incentives to council tenants, whose discount if they buy their house or flat can now be up to £75,000. A tenant who has been there for ten years for example, will qualify for a 40% discount off the market price of a house, or a flat tenant would qualify for a 60% discount. With property values relatively low, if you are a council tenant there has never been a better time to buy. We have acted for many tenants who have bought properties from council landlords, just ask us for more details.
Stamp Duty
Stamp duty on a purchase is paid (on the entire price) at a rate of 1% for properties costing between £125,001 and £250,000, 3% between £250,001 and £500,000, 4% between £500,001 and £1m, and an eye watering 5% for everything above £1m. Stamp duty thresholds have never been raised in line with property prices, and the actual rates have constantly been increased, and in our opinion stamp duty is excessive and unjustified. A reduction in rates would assist the housing market, and avoid the unfairness of buyers having to pay the government tens of thousands of pounds in tax just for the privilege of moving house. But we are not holding our breath!
The Housing Market
It is no secret that the housing market has been in the doldrums for some years now, with the number of transactions running at about half the level of those prior to 2009. However, prices have not collapsed as predicted by some, and in some areas (notably London) have continued to rise. As we are continually told that there is a shortage of housing in the UK, logic would dictate that property will always be a sound long term investment. So if you are thinking of entering the property market for the first time, or of moving house, 2012 would seem as good a time as any to do so!
As the market continues to be sluggish, when selling it is important to be able to proceed with the legal formalities quickly once a buyer is found. If you wish we can assemble a full legal pack of documents ready to send out as soon as an offer is accepted. Alternatively, if you are in no hurry we can wait until later before progressing the legal formalities. Either way, we offer an efficient and speedy service tailored to what you want.
