Looking to buy a new home? If so, you could be thousands of pounds better off with the reformation of Stamp Duty tax, announced in the Autumn Statement last week.
Not only will you benefit from this new, fairer system of calculating Stamp Duty, you can still take advantage of the Government-backed Help to Buy equity loan scheme, making the move to your dream home now even easier.
Most UK homebuyers will benefit from the changes to the system and pay less or, at worst, the same amount of Stamp Duty as before.
So, how will this benefit you and how much can you save?
If you are looking to spend more than £125,000 on your new home, you have to pay Stamp Duty. Less than that and it does not apply.
If your new home is costing you £275,000, for example, you will now pay £3,750 in Stamp Duty. Before the new reforms, you would have paid a whopping £8,250 for the same property - so you really will save £4,500!
Where could you use that money?
Well, on anything you fancy! You could pay a larger deposit or use it to make sure your new home is just the way you want it with the latest mod cons or room-sized TV. Or you could splash out on a hot tub or even a holiday!
However you wish to spend (or save), the £4,500 represents a real saving to you and your pocket.
Is it fair?
We really do feel that the reforms to Stamp Duty are a fairer way to calculate the tax and will help you make your budget go much further, in some cases.
Since midnight on Wednesday 3rd December, Stamp Duty increases incrementally via a series of bands.
From £0 - £125,000, you do not pay any Stamp Duty. So, whatever price you pay for your new home, the first £125,000 is Stamp Duty exempt.
From £125,000.01 - £250,000, you pay 2% and from £250,000.01 to £925,000, you pay 5% and so on.
If you pay £260,000 for your new home, £125,000.01 to £250,000 is payable at 2% with the extra £9,999.99 paid on the 5% tariff.
In your area
You could save £4,860 on Stamp Duty if our stylish 4 bedroom Kerridge home on the new Brookfield development in Coppull is the one for you.
The enviable Kerridge house type is now available with only £2,850 payable in Stamp Duty, compared to £7,710 only days ago.
We expect that the savings that can be made due to the Stamp Duty changes could play a huge role in helping you to secure a new home across the North West region. This is great news for everybody who has been looking for that extra push to make their next move.
So, thanks to the changes in Stamp Duty and still with the additional incentive of the Help to Buy equity loan scheme available, it is now even more affordable to own a brand new Seddon home.
Guest blog written by Denis Maddock, Sales and Marketing Director at Seddon Homes.