Property expert issues warning ahead of stamp duty changes – this is how YOU could avoid paying more
New stamp duty rules are set to come in from April which could catch out many homebuyers and leave them paying thousands more than planned.
Currently, first-time buyers do not pay any stamp duty on homes costing up to £425,000, while the threshold for other buyers is £250,000. But from 1 April 2025, the threshold for first time buyers will drop to £300,000. Meanwhile for buyers who are not first-time purchasers, it will be slashed in half to £125,000.
Data from Zoopla’s conveyancing service shows that it could leave first time buyers in some regions of the UK facing increases of up to £11,250 on average when it comes to stamp duty. Meanwhile those purchasing a home that is not their first property face increased costs of around £2,000 on average.
But homebuyers who act fast and are able to complete ahead of the deadline will be able to avoid the increases by completing faster. However, conveyancing — the legal process of transferring property ownership — can be time-consuming and often holds up the process. Navigating this quickly is therefore vital.
With the deadline quickly approaching, property expert Owen Rogers, Product Director at Zoopla’s conveyancing service, reveals that savvy buyers could still be able to avoid the increase and complete ahead of the deadline if they follow these tips.
However, time is of the essence. Owen says that home buyers will need to act by the start of February to have a chance of beating the costs. If they do – this is how they can stand the best chance of completing their purchase in time.
1. Get Your Finances in Order Early
The earlier you can confirm your mortgage offer, the quicker your conveyancing process will be. Many homebuyers make the mistake of starting the conveyancing process without a clear picture of their financial situation. By obtaining a mortgage pre-approval or ensuring you have your funds available well in advance, you can avoid unnecessary delays.
Work closely with your financial advisor or mortgage broker to get your paperwork in order early. Having everything lined up from the outset ensures that once the offer is made, you’re ready to proceed without delays.
2. Choose the Right Conveyancer
One of the most significant factors that influences how quickly your conveyancing process progresses is who you choose to handle your transaction. An experienced conveyancer with a good track record of meeting deadlines can make all the difference.
Zoopla’s free conveyancing service allows people to choose a vetted conveyancer – and is proven to speed up the process and includes a free money-back guarantee.
A good option could be to use Zoopla’s free conveyancing service to compare and select a vetted conveyancer. The service is proven to speed up the process, takes just 60 seconds to find a trusted UK conveyancer, and includes a free money-back guarantee.
3. Stay Proactive and Communicate Regularly
The conveyancing process involves several parties: the buyer, the seller, lawyers, the mortgage lender, the surveyor, and others. Delays often arise when communication breaks down or when documents sit idle waiting for approval or signatures.
Stay on top of every stage of the process and check in with your conveyancer regularly and ensure you promptly provide any documents they request. In addition, ensure ongoing communication with your Agent and Mortgage Broker. Regular follow-ups show your commitment to completing the transaction quickly and can encourage things to move more quickly.
4. Accelerate Property Searches and Surveys
Property searches and surveys are often time-consuming but are important for ensuring the property is suitable and legally sound. While it’s tempting to skip or delay these steps to save time, they are there for your protection.
Book your searches and surveys as soon as your offer is accepted. Some conveyancing firms, such as Muve, offer search indemnity as an alternative, much faster way of mitigating search risks.
5. Ensure a Swift Exchange of Contracts
The process of exchanging contracts legally binds the transaction and is one of the final steps before completion. However, delays in the exchange of contracts can cause substantial hold-ups, especially when a seller is hesitant or not organised.
Ensure that you are ready to exchange contracts as soon as all necessary conditions are met. Be proactive about gathering any information or documents needed for this final step. Stay in close communication with your conveyancing to ensure everything is in place and ready to be signed.
Follow these five expert tips to help speed up your conveyancing process and minimise the chances of paying extra in stamp duty.
You May Also Enjoy
Three major cities buck commuter belt trend
One feature that can see homebuyers bag a bargain
Property expert reveals six easily avoidable house-buying errors
Renovating Rental Properties: How to Reduce Costs, Attract the Best Tenants, and Increase Profits Without Unnecessary Investment
Are landlord repossessions set to spike ahead of RRA?
