In light of the stamp duty changes set to come into force on April 1, a Nottingham based property consultancy is warning property investors to get in quick when making new purchases to avoid the stifling surcharges.
Husband and Wife business, MS Estates, based on Lenton Boulevard, is warning property investors to buy now to avoid paying a three percent surcharge from April 1 2016, as it takes an industry average of 95 days to complete a buy-to-let mortgage.
Under the new charges, a £275,000 property’s stamp duty has rocketed from £3,750 to £12,000 and with less than 95 days until April 1, MS Estates is warning property investors to purchase now to increase the likelihood of deals going through before the deadline.
Michael Sahota, Partner at MS Estates said: “Buyers need to get in quick to avoid the surcharge. It is imperative that they make sure the lender can process the mortgage in time before the charge comes into play.“
“We have seen huge demand for buy-to-let properties and second homes at the start of 2016 and we are keen to help as many deals go through before the deadline. To help us, we need to get all wheels in motion very soon to give everyone the best opportunity to get these sales over the line.“
The new stamp duty surcharge of three per cent will be added to all buy-to-let and second home purchases and MS Estate is also warning sellers to act as soon as possible.
Michael added: “It’s not only buyers that are affected, obviously if you are selling your investment property after April 1, you may need rethink of your selling strategy”
The charge is expected to raise around £1billion for the treasury by 2021 with a large percentage being invested in local communities and to helping first time buyers get on the property ladder.