Last updated: 8th July 2020
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Buy-to-let landlords and lettings associations have been calling for Stamp Duty reform for some time.
On Wednesday July 8th 2020, Chancellor Rishi Sunak announced some big changes with a Stamp Duty Holiday that lasts until March 31st 2021.
Let's take a look how it affects landlords.
Buy-to-let mortgages often require a 25% deposit, so any savings up front can have a big boost. Here are the Stamp Duty rates you'll pay for the next 9 months or so.
It means that the 3% surcharge for buying additional properties still applies, but because of the wider changes to Stamp Duty, there is in fact a 2% saving.
It's certainly a good window of opportunity. A 2% discount can be over £2,000 on the average BTL purchase. However, this shouldn't be the sole reason you invest and you should always check that it's right for your own financial circumstances.
Remember, Stamp duty only applies at the point of purchase, so it won't have any impact on any previous BTLs you have.
However, the Government did say this: "Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge."
So, if you were previously thinking of switching to own your portfolio via a limited company, now could be a good time, as you will save on the Stamp Duty when you in effect sell the property to your new company.
You can see what mortgage rates you can get right now, and apply today.
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