What to Expect in the Initial Stages of a Conveyancing Transaction
There are many steps involved in the initial stage (which we often call the initial instructions) of conveyancing. Here we attempt to break them down into easy-to-understand and digestible steps.
Step 1: How do I get a conveyancing quotation?
Obtaining a quote is easy. You can get a quote by using our online calculator, or you can call us and we’ll take your details over the phone and provide you with an instant quotation. The quote will be based on many factors such as the value of the property, whether the property is freehold or leasehold, or whether it’s an existing property or a new build property. Whilst it’s not always possible to know all the detail at the outset, the quote can give you a guide of how much the legal services and additional costs would be.
There are many differences between Freehold and Leasehold Properties. A freehold property means you own the property and the land it stands on outright and indefinitely, giving you full control and responsibility for maintenance. In contrast, a leasehold property means you own the property for a fixed period as per the lease agreement, but not the land. After the lease expires, ownership reverts to the landowner unless renewed. Leaseholders may need permission for major changes and must pay ground rent and possibly service charges, whereas freeholders do not have these recurring costs. Freehold properties generally have higher market value and provide more autonomy.
The conveyancing process for a new build property differs from that for a standard (resale) property due to several unique factors associated with new builds. Some key differences are highlighted below:
For New Build Properties, Buyers often deal with contracts and agreements specific to developers, which can be complex and include clauses about property completion dates, build quality guarantees, and potential modifications. Although, with a Standard Property, the contract is typically simpler and standard, involving the current owner and covering the immediate transfer of ownership. Secondly, New Build Properties Completion is often based on the construction timeline. There can be delays, and buyers might be given a “long-stop” date (a latest possible completion date) compared to a Standard Property, where Completion dates are usually set mutually by the buyer and seller and are more predictable.
Furthermore, the solicitor acting on New build transaction must ensure the developer has proper title to the land and that the new build is correctly registered. There might be additional considerations if the property is part of a larger development. However, Standard Property Title checks are usually more straightforward, focusing on the current owner’s title and any existing issues.
Step 2: How do I Instruct a Solicitor for a property purchase or a property sale?
If you are ready to proceed with your house purchase and/or sale, then instructing your solicitor is often as easy as calling them or clicking on an “instruct solicitor” button contained within an email you may have received. Here at Thornton Jones Solicitors, we will email you your detailed quotation and within your email is a button you can click to instruct us. Of course, if you prefer you may choose to instruct us over the phone.
Once instructed, we will ‘open a file’ for you, which basically means we input your details onto our computer system and use this ‘file’ to track the progress of your conveyancing transaction. Within 48 hours of instruction we will send to you your Client Care Pack.
Step 3: What is the Client Care Pack and what checks will be done?
The Client Care Pack is a set of documents that are both important and useful. It’s important that you take time to read everything that is sent to you in your Client Care Pack. Your Client Care Pack will include:
• A letter outlining the scope of our work and our fees and other conveyancing related costs;
• A Client Declaration Form which you must read, sign, and return to us;
• A Payment Diversion Fraud Leaflet (need a small explanation of what this is);
• Our Third Fort ID App Leaflet which explains how we use an application called Third Fort to verify your identity;
• Questionnaires relating to your transaction that you should complete and return.
This leaflet is provided to all our clients to explain the different types of scenarios whereby you should be more vigilant to minimise your exposure to property fraud. This leaflet specifically highlights how to protect yourself from becoming a victim of conveyancing fraud, and what action you should take if you suspect that you have been a victim to conveyancing fraud. These schemes that are conducted by criminals are highly sophisticated, and can include them impersonating your lawyer, to con you into making a payment to their account.
Ways to spot conveyancing fraud:
– Being cautious of unsolicited emails or calls
– Checking for email address inconsistencies
– Verifying bank account details with your solicitor
– Watching out for warning signs like pressure tactics
Lastly, if you’ve fallen victim to a scam, you must take immediate action. Report the fraud to your bank to allow them to freeze the funds and advise them of the fraudulent activity that’s occurred. You must also inform your solicitor and estate agent, change passwords and secure your email account. Cooperate with law enforcement and consider seeking legal advice for recovering financial losses.
Step 4: What happens once I’ve returned my initial instructions?
Once you have completed and returned your initial instructions (Client Declaration and questionnaires), the documents will be reviewed by your appointed Conveyancer and their assistant, and we will inform you if we require anything further. You will also receive a request to your mobile phone number and your email address asking you to complete your identification checks using our Third Fort app. If you have any issues with this, then by all means contact us so that we can arrange for your identify to be verified in person at one of our offices.
Third fort is an online app which we use to conduct enhanced Identity checks on clients. The client will firstly receive an invitation from their solicitor or conveyancer to use the Third fort app. This invitation typically comes via email or SMS and includes a link to download the app. The client can then download and install the Third fort app on their smartphone from the App Store and set up an account by entering their email address and creating a password. They may also need to verify their email address. The app guides the client through the process of verifying their identity which typically involves:
Document Upload: The client is prompted to take photos of identification documents, such as a passport, driving license, or national ID card.
Selfie: The client takes a selfie within the app to match their face with the photo on the ID document using facial recognition technology. The client may also be asked to provide proof of address. This usually involves taking a photo of a utility bill, bank statement, or other acceptable documents that show their name and address. Once all required information and documents are uploaded, the client submits them through the app. The information is then securely sent to the solicitor or conveyancer for review.
Contact us
If you are looking to buy or sell a property then call us today for a free no-obligation quote or use our online conveyancing calculator for an instant quote.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
What To Expect When Completing on a Property Purchase
It’s National Conveyancing Week this week, a week long campaign designed to help people better understand the conveyancing process. Today, in collaboration with Mike Dobson Estate Agency, we help you understand a little better what to expect when you are completing on a property purchase.
So, you’ve exchanged contracts and completion day has finally arrived! But what is completion and what should you expect?
What is Completion?
Completion is arguably one of the most important stages of the conveyancing process after exchange of contracts. Legally, it is the final part of the buying process, when the property ownership is transferred from the seller to the buyer.
This is the day that the seller must vacate the property. The contract which both the seller and buyer sign, has certain provisions called “special conditions”. These conditions contain information such as what time the property has to be empty by. Your solicitor will make you aware when sending documents for signing, what time you need to vacate by.
Practically, completion is the day you receive your keys to your new home and move in to the property.
When is Completion Day?
When exchange of contracts takes place, the contract is dated with the completion date agreed by the chain. Your solicitor will have discussed this date with you in advance and you will have agreed that date is suitable for you. Completion is always on a weekday, so the money is transferred and the transaction confirmed on the same day.
Friday is usually a popular option, giving the buyers enough time to move in and unpack over the weekend. You can usually find us lawyers having a very busy Friday!
One Week Count Down To Completion!
Mike Dobson Estate Agent recommends that if you choose them as your agent for your move, you can be assured of top quality service. A week before your move, we will send you a handy check list with tips and things to remember, such as:
- Who you need to notify that you have moved home (banks, doctors, post office etc);
- Ensuring you have arranged a mail redirect;
- Paying all outstanding home bills, including milk, window cleaner and gardener;
- Making arrangements for young children for the day of completion – no one wants an overly tired toddler whilst trying to juggle boxes;
- Look after your pets by using proper pet carriers for them to travel in.
Mike Dobson also advise to touch base with the seller a few days before completion to discuss the keys and when to hand them over. Similarly, they also speak with the buyer to advise them that on completion day, they will let them know once they have heard from the sellers solicitors releasing the keys.
What Happens on Completion Day?
Step 1 – Funds are sent from the buyers solicitor to the sellers solicitor. We are in the hands of the banking system, so unfortunately we cant provide a time completion will take place.
If you have just a purchase, then funds are sent to the sellers solicitors early morning, as we already have your mortgage funds. Where we can, we ask for the lender to send the mortgage funds to us the day before. So we can send the purchase monies out as early as possible on completion day.
Step 2 – Once the Funds are received it is the sellers solicitors job to then call the buyers solicitor and advise them that money has landed. They also then call their client to let them know and check how they are getting on with vacating the property. The sellers solicitor will then call the agent to advise that keys can be released.
Step 3 – Key collection & paperwork. Mike Dobson Estate Agency advises that on completion, once we get the call from the sellers solicitors, that’s when we give the buyers a call and advise either that we have the keys and they can collect or that the seller is still packing up and the keys will be dropped off shortly.
So, we’ve advised you that completion has taken place. In the background, we will also be dealing with repaying your existing mortgage lender and paying agents fees. If you are buying, submitting your stamp duty form and putting in place any indemnity polices.
What Happens After Completion?
After completion takes place, your solicitor is then tasked with updating the Land Registry. This is when the property register changes from seller to buyer. This can take a significant amount of time depending on the transaction type, as we have to wait for Land Registry to process the application.
Contact us
☎️ Call our Wakefield office on 01924 290 029
☎️ Call our Garforth office on 0113 246 4423
☎️ Call our Sherburn in Elmet office on 01977 350 500
☎️ Call our Mapplewell office on 01226 339 009
☎️ Call our Ossett office on 01924 586 466
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
My Mortgage Offer Has Been Issued – What Are The Next Steps?
It’s National Conveyancing Week this week, a week long campaign designed to help people better understand the conveyancing process. Today, with the help of Luke Senior of Just Mortgages, we explain what the next steps are once your mortgage offer has been issued.
A Mortgage Offer is the final step of the application process and is processed once the Lender has carried out their final checks and is happy to proceed. The offer is official confirmation that the bank will lend you the monies which have been applied for to purchase a property.
The mortgage offer, once finalised, will be issued to you and ourselves as your acting solicitor. As your Conveyancing Solicitor we will carry out a review of the offer which will include:
- We’ll check the accuracy of the mortgage offer – We will check the correct full names are noted on the offer as per your ID documentation and that the property address is correct as per the Title Information Document from Land Registry.
- We’ll check the advance we are to receive from the lender on completion – We will check this is the amount you were expecting to borrow and that we have source of funds for the remainder of the purchase price you are to contribute.
- We’ll check any special conditions of the lender that we as solicitors are to adhere to – For example, if there is an occupier who is to reside at the property the lender will usually require them to sign a waiver to waive any rights over the property prior to completion. The offer may also have conditions referring to repayment of other mortgages/debts that we are to ensure have been repaid by you either before or at the time of completion. We will make you aware of any special conditions upon review of the offer.
- We’ll check the expiry date of the mortgage offer – the offer will have a date it is valid until, which is usually either three or six months dependant on the lender. We will note the expiry date as a guideline for the latest possible date when completion needs to take place by. Hopefully completion can take place well before this, but in some circumstances for example if the matter is complicated and additional legal work needs to be done, there is a long chain or if the property is still being built the mortgage offer may expire.
What if my Mortgage Offer is Due to Expire?
If your mortgage offer is due to expire then it’s important that you meet with your mortgage advisor to discuss our options. Luke Senior from Just Mortgages in his best practise states:
I will communicate with your solicitor during the buying process, and if there are any concerns around being able to complete prior to the expiry of your mortgage offer, the acting solicitor will make me aware . Some mortgage lenders allow you to extend the offer by a month, others will require you to make a new application – which may lead to a change in interest rate and monthly payments”
Luke Senior of Just Mortgages
Can I Make Changes to the Mortgage Offer After it Has Been Issued?
Administrative changes can readily be made before we complete. However, some changes regarding the rate and product would need to be reviewed depending on whether you have time. Luke Senior from Just Mortgages says the rates of interest and products that lenders offer change frequently, especially at the moment and the interest rate each lender is charging can increase or decrease week by week. He keeps an eye on the interest rate your Lender is currently offering, and if the rate decreases from the rate in your current mortgage offer will make you aware, or other preferential alternatives on the market place.
If you intend to apply for more beneficial products or a lower interest rate you will need to check with the solicitor to ascertain the position of the conveyancing transaction and whether there is time to secure the new offer. We will require the mortgage offer you intend to proceed with to be in place prior to exchange of contracts.
How is the Money From the Lender Received?
Once a completion date is agreed we will submit a request to the lender for the mortgage advance which will be released directly to our solicitor’s account.
Most lenders require five working days’ notice as a minimum to release the funds, but we will check this at the outset when the offer is received so we are aware of your lender’s requirements.
The mortgage advance is generally requested for the day before completion, as the lender cannot guarantee the time the funds will be released. If the monies are requested the day before we can ensure all funds are with us in readiness for completion the following day to avoid any issues or waiting time.
Contact us
☎️ Call our Wakefield office on 01924 290 029
☎️ Call our Garforth office on 0113 246 4423
☎️ Call our Sherburn in Elmet office on 01977 350 500
☎️ Call our Mapplewell office on 01226 339 009
☎️ Call our Ossett office on 01924 586 466
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
When Can Contracts be Exchanged?
This week is National Conveyancing Week, a week long campaign designed to help people better understand the conveyancing process. Today, with the help of Phoebe Chapman at Parkrow Properties in Sherburn in Elmet we answer a commonly asked question of when can contracts be exchanged.
To start with, we should explain what is the exchange of contracts. The exchange of contracts is where both seller and buyer become legally bound to sell and buy the property. Before contracts are exchanged, either seller or buyer can pull out for any reason without penalty.
Before contracts can be exchanged, a completion date (the day funds and keys are handed over) must be agreed but before this can happen, the buyer’s conveyancer must be satisfied that the legal title to the property is satisfactory which usually includes being in receipt of any searches, mortgage offer, and replies to all enquiries which have been raised with the seller’s conveyancer.
When the buyer’s conveyancer has received the Contract Pack from the seller’s conveyancer, searches are then requested which usually include a local authority search, drainage and water search and coal mining search. Additional searches such as environmental and flooding searches can also be requested if required and any others which are specific to the property area.
The buyer’s conveyancer will usually raise any enquiries relating to the property once they are in receipt of the searches as they can then be raised in one go rather than in piecemeal so not to complicate the enquiries.
The enquiries seek additional details about the property, its history, any ongoing legal matters, and any other relevant information. By raising these enquiries, any concerns or potential issues can be highlighted.
What is the Principle of Buyer Beware?
Caveat Emptor applies to conveyancing and is a Latin phrase meaning “let the buyer beware”. Put simply, it is the buyer’s responsibility to ensure that the house they are purchasing is suitable for them and is in good condition. The buyer is purchasing the property “sold as seen” and it is the buyer’s responsibility to arrange a survey of the property (including arranging an inspection of the services at the property by a qualified person). This is important because we do not carry out a physical inspection of the property and the buyer will inherit any problems (structural or otherwise) following exchange of contracts.
Phoebe Chapman from Park Row Properties recommends that any surveys and inspections are carried out early in the buying process to give time for any remedial works and/or price negotiations to take place.
If anything is agreed with an estate agent, it is important that this information is also passed on to the conveyancer acting for the seller and the buyer. The estate agent will usually let them both know but the seller and buyer should also confirm the information with their conveyancer direct.
Phoebe also recommends that you arrange a further viewing of the property before exchange of contracts to ensure that you are satisfied with its state and condition. This is particularly important if the property is currently empty or if any tenants have recently vacated.
How is a Completion Date Agreed?
When all the steps leading up to exchange of contracts have been concluded and the buyer’s conveyancer and the buyer are happy to proceed, a completion date can be agreed. This involves both seller and buyer putting convenient dates forward to their conveyancer and the respective conveyancer agreeing one with the seller and buyer.
The estate agent can also be involved in negotiating dates, but the seller and buyer must have confirmation of the completion date from their conveyancer as dates can be mistaken when there is a chain involved – all parties in the chain must usually agree the same date unless someone decides to break the chain.
You can find out more about the process of selling and buying your home by reading our online guides.
Contact us
☎️ Call our Wakefield office on 01924 290 029
☎️ Call our Garforth office on 0113 246 4423
☎️ Call our Sherburn in Elmet office on 01977 350 500
☎️ Call our Mapplewell office on 01226 339 009
☎️ Call our Ossett office on 01924 586 466
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
What’s the Best Way to Secure the Sale or Purchase of a Property?
This week is National Conveyancing Week, a week long campaign designed to help people better understand the conveyancing process. Today, with the help of Chris Tudor of Tudor Financial Solutions Ltd we look at the best way for you to sell or buy a property.
Once you have decided to get on the property ladder or make a move from your current home, it is really important to get organised at the outset. There is a lot of work that goes on in the background with Estate Agents, Financial Advisors and Solicitors, so the key is to gear up with everything you need at the start, so you are good to go!
You Should Speak with a Financial Advisor First
Before you make an offer on a property, or if you need to sell and buy a property with the aid of a mortgage, you should consult with a Financial Advisor. Chris Tudor of Tudor Financial Solutions Ltd recommends getting a decision in principle. This is an illustration, after a review of your circumstances, of what ‘in principle’ you may be able to borrow from a mortgage provider.
Having a decision in principle at the outset will help you understand the budget you may have available to you and therefore which properties will be affordable. A decision in principle will also be used as proof of funding to illustrate to the estate agent how much you can borrow. You should also have a full financial assessment to consider not only your mortgage needs but also a review of any life, illness, or income protection policies together with a review of your savings and investments.
Ensure that you source all of your paperwork, including bank statements, pay slips/P60, accounts etc so that a full review can take place. Chris Tudor also recommends at this stage to review your credit file so your Financial Advisor can determine how much lenders will lend to you based on your credit rating and circumstances.
At This Early Stage You Should Also Find a Solicitor
At this early stage it is also important you find a Solicitor to oversee this process from the start. Don’t leave it until your offer has been accepted to start shopping around for a Solicitor or you may only add to the delays of the conveyancing process getting up and running. Here at Thornton Jones Solicitors, when you are thinking of selling your property, or buying a new home, we can advise on how the legal process works, what will be required of you, the timeframes involved, and the likely costs you will incur.
Make sure you do your research, use a Solicitor that has been recommended to you or you can see has had lots of good feedback and reviews. Cost should not be the sole deciding factor here as often the cheapest can end up being the most expensive with all of the hidden add-ons or time delays.
Ensure you have a Solicitor that meets your needs to allow your conveyancing transaction to progress as smoothly as possible. Here at Thornton Jones Solicitors we offer our clients various platforms to cater for their needs – you can visit our offices, contact us by phone or email, or use our online portals to complete paperwork and review progress of your transaction via our app. Using a trusted Solicitor that is accessible to you will help you navigate the process and save more time in the long run.
Be Sure You Have Proof of Funds if You Are Paying a Deposit on Your Property Purchase
If you are putting a deposit down on a purchase, Estate Agents, Financial Advisors, and Solicitors will all want to see proof of these funds to check your viability to proceed. Be ready to provide at least 6 months’ worth of bank statements to show the originating source of your deposit and how it has accrued. There may be other questions raised so be ready to explain your funding arrangements.
If you are selling your property, ensure that you have all the necessary paperwork such as Guarantees or Certificates for any work that has been done to your home. If you have any deeds or papers from when you bought your property you should let your Solicitor have these. They may contain key legal documents for matters that may need to be looked at again when you sell your property.
What Should You Do When You Accept an Offer on Your Property?
Once your offer is accepted on a new property, ensure you let your Solicitor know so they can request the contract papers from the seller’s legal representative. It is also important to let your Financial Advisor know you have secured a purchase. Chris Tudor advises that a Financial Advisor needs to check that the product and rate you had considered previously are still available or reassess other options that are now available on the marketplace that may be more preferential to you before submitting a formal mortgage application.
Mortgage applications can take around two to three weeks to process with a mortgage lender. Once approved, a valuation of the property for the mortgage lender takes place. This valuation determines the value of the property and whether the property is suitable for a mortgage. Only once these steps have been concluded and approved by a mortgage lender is a mortgage offer formally issued by a Lender, enabling you to proceed with confirmed funding in place for your purchase.
Make sure you keep your Solicitor, Financial Advisor and Estate Agent aware of any changes. If you need any guidance on what to do, we are always available to help or can often provide you with recommendations of who to use for your needs rather than just Googling!
Contact us
☎️ Call our Wakefield office on 01924 290 029
☎️ Call our Garforth office on 0113 246 4423
☎️ Call our Sherburn in Elmet office on 01977 350 500
☎️ Call our Mapplewell office on 01226 339 009
☎️ Call our Ossett office on 01924 586 466
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
Time is Running Out to Save Thousands on Stamp Duty
On 8th July our Chancellor of the Exchequer, Rishi Sunak, announced a Stamp Duty Holiday which could save home buyers a staggering £15,000 in Stamp Duty Land Tax (SDLT). It’s a bold move that is intended to boost the property market during these unpredictable Covid-19 times and will see all home buyers whose purchase price is between £125,000 and £500,000 make a saving.
But be warned, good things must come to an end and on 31st March 2021 the Stamp Duty will return to the usual pre-Covid rates. You may think you have plenty of time and whilst some property purchases can complete is super-fast time there are many steps that must be ticked off before completion can take place and any of these steps could hit hurdles that delay the process and ultimately result in a completion that occurs after the SDLT holiday and therefore costs you your saving.
What is Stamp Duty Land Tax (SDLT) and who has to pay it?
Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in England and Northern Ireland. Buyers must pay SDLT if the property price exceeds the relevant threshold. The amount varies based on the purchase price, type of property (residential or commercial), and whether the buyer is a first-time buyer or an additional property owner.
For more information on the SDLT Thresholds (Stamp duty Thresholds) visit the government website or contact us on 01924 290029.
How long does it take to complete on a Property Purchase?
It’s commonly quoted that the average time to complete on a property purchase is 12 weeks and although some solicitors are proud to have a timescale far shorter than this we exercise caution when it comes to specifying a timescale. 12 weeks (or three months) from today doesn’t leave very much leeway on the plan before the 31st March 2021 deadline and if your budget is tight then any delays which result in completion occurring after the deadline might mean a make or break situation where additional emergency finance is needed to fill the void between the property purchase price, your approved mortgage and the Stamp Duty bill payable to HMRC.
There is still time to cash in and benefit from the SDLT holiday
Meet Our Head of Commercial Property
Stuart Knox has be working in the local legal community for many years. He qualified as a solicitor in 2006 at traditional Wakefield firm Dixon Coles & Gill before joining Thornton Jones Solicitors in February 2016.
Stuart possesses a broad legal knowledge and skill set, having a background dealing with all kinds of Property transactions and also having previous experience working in Wills & Probate and General Litigation.
But there’s no need to panic! There is still time benefit from the SDLT holiday. Here are our top tips on how you can still cash in and make some serious savings when buying your new home.
- If you are planning on buying a new home and wish to take advantage of the Stamp Duty Holiday then it’s advisable to act now. The whole process from start to finish can take on average 12 weeks and this doesn’t factor in the increased workloads at the local authority and other departments which from our recent experience is resulting is delays getting searches back. The sooner we can submit your request for searches to be completed to sooner we will receive them and this will put us in good stead to complete prior to the 31st March 2021 deadline.
- If you are dependent on the sale of your property to release funds to buy your new home then get it on the market now. The property market is booming right now and property seems to be selling fast however this doesn’t mean we can be complacent. According to the experts the Market Date for a property is 26th September. This is the date you should have your property on the market to allow time for it to be marketed by your Estate Agents, viewed by prospective purchases, offers received and accepted and for the whole sale process to complete before the 31st March 2021 deadline.
- If you are looking to buy a new home and are in need of a mortgage to make it a reality then it’s wise to go get a mortgage offer immediately. Knowing a) what you can afford and b) that you can indeed borrow that amount ahead of searching for a new home will certainly speed up the process. Speaking to a Financial Advisor will really help in getting your mortgage offer fast so that you can view properties that are affordable and avoids wasting time viewing properties that may be financially out of reach.
- If you are selling your property (to enable a purchase) then think back to when you purchased it. Were there any complications such as access rights? If there were and you have communications relating to these then dig them out in readiness to present to your solicitor. This will likely help in speeding up the process. If the property is leasehold then grab a copy of the lease. Think about making a folder containing such documentation and include things like FENSA certificates for replaced windows, your EPC certificate, any certificates relation to any building works or alterations.
- Many but not all property transactions form part of a chain. Where there is a chain, you are reliant upon every single part of the chain being ready to complete before you can complete and this means that, to a large extent, making sure you complete before the SDLT Holiday deadline is out of your hands. Maybe consider a property that is part of a small (or ideally no) chain to improve the chances of a timely completion.
Finally, it might not go to plan and you may find yourself facing a large tax bill should completion occur after the deadline. If this were to happen and you are still set upon completing on the home of your dreams then it may be sage to ensure you have back up funds available to cover such a bill.
Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in England and Northern Ireland. Buyers must pay SDLT if the property price exceeds the relevant threshold. The amount varies based on the purchase price, type of property (residential or commercial), and whether the buyer is a first-time buyer or an additional property owner.
For more information on the SDLT Thresholds (Stamp duty Thresholds) visit the government website or contact us on 01924 290029.
www.gov.uk/stamp-duty-land-tax
The amount of SDLT owed depends on the purchase price and property type. SDLT is charged in bands, meaning different portions of the price are taxed at different rates. There are also reliefs and exemptions for first-time buyers and other circumstances. The latest SDLT rates can be checked on the UK Government website.
www.gov.uk/stamp-duty-land-tax
Yes, first-time buyers purchasing a residential property for £425,000 or less pay no SDLT. If the property is between £425,001 and £625,000, they pay a reduced rate. However, for properties over £625,000, the standard SDLT rates apply.
Please note that these thresholds are subject to change and it is therefore advisable to contact us for more information or to visit the government website.
www.gov.uk/stamp-duty-land-tax
SDLT must be paid within 14 days of completing the property purchase. Usually, a solicitor or conveyancer will handle the submission and payment on behalf of the buyer. Payments are made to HM Revenue & Customs (HMRC) along with an SDLT return.
Yes, an additional 3% surcharge applies on top of the standard SDLT rates for second homes or buy-to-let properties over £40,000. This applies even if the buyer already owns property abroad. Some exemptions may apply depending on circumstances.
Please note that these thresholds are subject to change and it is therefore advisable to contact us for more information or to visit the government website.
www.gov.uk/stamp-duty-land-tax
Contact us for expert advice on Stamp Duty
If you are looking to purchase a property and require advice on Stamp Duty Land Tax (SDLT) then contact us today to discuss your needs further and to make an appointment.
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How a Lifetime ISA can help you buy your first home as well as save for your Retirement
If you’re looking to buy your first home or boost your retirement savings, then a Lifetime ISA (LISA) could be a great option for you. A Lifetime ISA is designed to help first-time buyers save for a property while also supporting long-term financial security, a Lifetime ISA (LISA) offers a 25% government bonus on contributions, making it a valuable savings tool.
A Lifetime ISA (LISA) can be opened if you are between the ages of 18 and 39 and can be held until age 50. You can choose between a Cash LISA, which earns interest, or a Stocks and Shares LISA, which invests your savings. Whichever option you choose, the government boosts your contributions with a 25% bonus, helping you grow your savings faster.
What is a Lifetime ISA?
A Lifetime ISA (LISA) is a tax-free savings account designed to help first-time buyers save for a home or build a retirement fund. Open to those aged 18 to 39, it allows savings of up to £4,000 per tax year, with a 25% government bonus added. The funds can be used to buy a first home (up to £450,000) or withdrawn penalty-free from age 60 for retirement.
How much bonus does the government pay on a Lifetime ISA?
The government adds a 25% bonus to your contributions, up to a maximum of £1,000 per year. This bonus is paid monthly based on the contributions made in the previous month. For example, if you contribute £100 in June, a 25% bonus of £25 will be added to your Lifetime ISA in July. You can use your savings towards purchasing your first home after at least 12 months of saving, as long as the home is valued up to £450,000. If you’re buying jointly, both buyers can have their own LISAs, allowing you both to receive the bonus.
If you don’t use the funds for a home purchase after 12 months, you can keep the money and the bonuses in the account and use it for retirement savings. However, if you decide to withdraw it for any other reason, you’ll face a 25% withdrawal penalty, meaning you’ll lose the government bonus and could end up with less than you originally invested.
What happens to my Lifetime ISA if I haven’t saved for the minimum period of 12 months?
If you’ve saved for less than 12 months, you won’t be able to use your Lifetime ISA savings for a home purchase. The 12-month minimum saving period is a requirement to access the funds for a first home. Attempting to withdraw the funds before reaching the 12-month mark for a home purchase will result in a penalty, and you could lose the government bonus and part of your own savings.
After you have withdrawn your savings, including bonuses, to fund or part-fund the purchase of your first home, you can keep the Lifetime ISA and continue to invest for your retirement. Continuing to invest will still attract the government bonus of 25%.
How can I use my Lifetime ISA for retirement
Whether you have used your LISA for the purchase of your first home or not, any funds remaining in your Lifetime ISA can be kept and added to as part of your retirement savings. Any further contributions you make will continue to attract the 25% government bonus. You can continue to contribute to your LISA until you reach age 50. However, to use these funds for retirement, they must remain in the Lifetime ISA until you reach age 60. Withdrawing funds before age 60 for any reason other than buying your first home would result in a 25% penalty.”
Do I need a solicitor to use my Lifetime ISA (LISA)?
You do not need a solicitor to open or manage your Lifetime ISA (LISA). However, if you are using the funds for the purchase of your first home, you will need a solicitor or conveyancer to handle the legal aspects of the transaction. They will help ensure the LISA funds are correctly applied towards the purchase and ensure all requirements are met for you to receive the government bonus.
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How to use your Lifetime ISA when buying your first home
When purchasing your new home, you will need the aid of a solicitor to claim this incentive on your behalf. Our residential conveyancing solicitors here at Thornton Jones can assist you with using your Lifetime ISA (LISA), and advise you on the rules and timeframe in which they must be used.
No, the Lifetime ISA is specifically for first-time buyers. If you already own or have previously owned a property, you won’t be eligible to use it for a home purchase.
If you don’t use your LISA for a first home, you can keep saving in it until you turn 60, at which point you can withdraw your money (including the government bonus) without penalty.
Yes, you can have both, but you can only use the government bonus from one of them when buying your first home. A Lifetime ISA may offer a higher savings limit and bonus.
You must have opened and held your LISA for at least 12 months before you can use it towards a home purchase.
If your property purchase doesn’t go ahead, the money must be returned to your LISA to avoid the 25% withdrawal penalty.
The content of this blog post is for information only and does not constitute formal legal advice and should not be relied upon as advice. Thornton Jones Solicitors Limited accepts no liability for any such reliance upon this content. Where the post includes links to external websites, Thornton Jones Solicitors Limited accepts no responsibility for the content of such sites. Any link to a third-party website should not be construed as endorsement by Thornton Jones Solicitors Limited of any content, products or services which are outside our direct control.
