October 5, 2020
Mojo Mortgages is an award-winning online mortgage broker. Let's get you the best rate you can... for free, all from the comfort of your sofa.Get mortgage options
Buy-to-let landlords and lettings associations have been calling for Stamp Duty reform for some time.
On Wednesday July 8th2020, Chancellor Rishi Sunak announced some big changes to Stamp Duty in England with a 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.
Here's a few other articles you may find useful.
Thinking about buy-to-let? you'll find everything you need to know right here - from investment potential to mortgage applications.
It's an option that could end up saving you thousands. Especially if you are looking to grow your portfolio. Can you get a mortgage as a ltd company?