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First time buyer and stamp duty

(20 Posts)
ajandjjmum Thu 26-Oct-17 10:27:20

Just wondering if anyone has any thoughts - or maybe Philip Hammond is on MN and would like to PM me! grin

DD is due to exchange on her new home at the end of the month, with completion a couple of weeks later. However, I've read comments in the press about the possibility of a reduction in stamp duty for first time buyers in the budget, which is on the 22nd November.

Just wondered if anyone had any thoughts on this (I know it's crystal ball gazing!), and secondly, if it did happen, would it be likely to be with immediate effect.

Thank you.

CandyMelts Thu 26-Oct-17 10:29:29

Ooh interesting, I'm working towards a November exchange for my first home.
These things are often immediate aren't they, or it'd totally throw people's timings

ajandjjmum Thu 26-Oct-17 11:18:37

I think so Candy - estate agent isn't happy but at the end of the day, it could save DD thousands (buying in London!)

At least if you're a November exchange, completion after the budget is more likely.

It was discussed in the Evening Standard and as George Osborne and Philip Hammond have been meeting up, I think it might happen.

Snagz Thu 26-Oct-17 11:23:36

Previous stamp duty changes came into effect immediately after the budget I think, but that was the tier changes, with the extra for more than one property coming the next year?

You DD risks losing the sale if she delays, dependent on situation. I completed days before the last set of changes, I just chalked it up to experience even though it was also a couple of thousand quid.

Snagz Thu 26-Oct-17 11:25:25

You say end of the month, depends if your seller will wait four weeks. Would be tough to lose the purchase and money you’ve already shelled out and then there be no changes...

CandyMelts Thu 26-Oct-17 11:27:42

Just been looking into this a bit more, it seems that the form filled in to pay your stamp duty is based on the completion date. If so your DD could still exchange and pencil completion for the 23rd? It's only going to be a week or so later than her sellers planned which seems normal

ajandjjmum Thu 26-Oct-17 11:31:03

That's exactly what she would plan to do Candy, exchange in October and complete in November straight after the budget, so the vendor has the surety of the sale on exchange, but has to wait an extra week or so for all of the money.

ajandjjmum Thu 26-Oct-17 11:32:21

You're absolutely right Snagz - and as I've brought it up with her, I don't think I'd be popular!

Snagz Thu 26-Oct-17 11:34:00

Ah completion was already a couple of weeks after exchange. Makes sense if the sellers can do wait an extra week, guess it depends on their onward purchase.

Hope it works out for her.

CandyMelts Thu 26-Oct-17 11:36:29

Yes fingers crossed for her, and me! Would make a big difference to us

listsandbudgets Thu 26-Oct-17 11:40:49

Yes but one of the other rumours floating about is that liability for stamp duty may be switched to the seller rather than the buyer.

If the seller is going into a more expensive property then this may be beneficial to them. If however they are selling to downsize, then I doubt they'd wish to take the risk of waiting for the budget.

Quite often these things don't come into affect the day after the budget but might wait a few months so even if the rumours of benefit to first time buyers are correct then you dd may not benefit anyway.

ajandjjmum Thu 26-Oct-17 12:04:57

That's true lists - if it was a few months, then we'd just proceed anyway. The seller is not moving anywhere - I think it's a second property for them.

But I can't think that they would announce this to take effect in a few months, as the market for first time buyers in London is so poor anyway at the moment - a delay would kill it.

But who knows?!!

Snagz Thu 26-Oct-17 12:27:00

This all assumes politicians make sensible decisions wink

ajandjjmum Thu 26-Oct-17 12:38:02

That'd be a first! grin

willandkate Wed 08-Nov-17 19:41:34

I’m another first time buyer desperate to know what will happen with stamp duty! Basically ready to exchange except for a couple of bits of paper work going to the solicitor. I think I’m going to wait and see because it seems too good a chance to miss out on saving £2.5k (hard saved!) money.
Does anyone know whether it’s the exchange or completion date that matters? Thanks

Ellisandra Thu 09-Nov-17 13:29:17

@willandkate read CandyMelt's post

willandkate Thu 09-Nov-17 20:20:47

Thanks Ellisandra 👍🏼

ajandjjmum Wed 22-Nov-17 14:40:29

DD was told it was the completion date willandkate so went ahead and exchanged end of October, with completion tomorrow.

She's very happy she waited!

Hope this will help others too.

CandyMelts Wed 22-Nov-17 20:50:46

Glad she benefitted! Great news for us too grin

willandkate Wed 22-Nov-17 22:50:20

Thanks! I waited too, complete on Friday! Very happy smile Glad it’s worked out for you.

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