Beating the stamp duty holiday

There are calls for the Government to extend the stamp duty holiday beyond 31st March. The activity in the housing sector has certainly given the economy a boost, whether the Government see this as enough, as an inflation risk, or want to raise taxation at source waits to be seen.

For now, the stamp duty holiday expires on 31st March, after that it is back to paying the full amount.

For property investors, this means the cost of acquiring residential investment properties is going to jump.

The Lender Completion & Timing Issue

The big issue facing many property investors is that trying to apply and complete on a buy to let mortgage now is unlikely to happen. Most lenders have a backlog and we are starting to see lenders accept new applications but not for anyone wanting to complete before 31st March.

This is by no way a dig at the lenders or the solicitors. Let’s remember that in the last few months we have seen a UK government tax incentive, a major pandemic, payment holidays, changes to lender criteria and solicitors seeing a longer processing time for items such, as necessary searches when buying a property.

So what is the answer?

For many property investors who want to finance a purchase and complete before the 31st March the answer is to be a little more inventive and remember how much the saving in stamp duty is worth to you.

There are ways to do this, it just takes a little expertise and a willingness to make it happen.

For most property purchases, to beat the 31st March deadline then the route may be to;

• Put some sensible short term finance in place now
• Get the purchase done
• Make the stamp duty saving
• Remortgage when the pressure is off

For those who purchase property as an aside to their trading business then don’t forget the the CBIL scheme allows trading businesses to raise finance which has no cost or outgoing for 12 months. If you plug that in to the above you have a well priced, well structured, stamp duty holiday beating solution to buying that property.

Sometimes it comes down to looking at the challenge, then making things fit for you.

Remember, it can be done so don’t be put off if someone tells you you can’t.

Here if you need me, drop me an email or give me a call.

Dave Farmer