How The Budget Impacts Conveyancing
On 29th October 2018 the Chancellor of the Exchequer announced the last budget before Brexit. The two main changes which will affect conveyancing that were introduced are as follows:
1. All first time buyers purchasing a shared ownership property up to the value of £500,000.00 will be exempt from stamp duty.
The change introduced in the Budget means that the first time buyer relief is extended to first time buyers of shared ownership properties up to a value of £500,000.00 in England and Northern Ireland that complete after the 29th October 2018. The relief has also been backdated to 22nd November 2017 therefore any first time buyers that completed from that date but before the announcement yesterday will be able to apply to the Inland Revenue for a refund on any stamp duty they paid. To do this you will need the Unique Tax Reference (UTR) number from the application made by your solicitors on completion.
2. New Help To Buy Equity Loan for First Time Buyers to commence in April 2021
In 2013 the Government introduced the Help To Buy loan whereby the Government will lend buyers up to 20% of the value of a new build property. The buyer is not charged any fees on the loan for the first five years of them owning the property. There are certain requirements but the loans are not restricted to first time buyers only.
This will change from April 2021, a new Help To Buy loan will be introduced that will run for 2 years for first time buyers only and for houses with a market value of no more than a regional property price cap as set out below:
At present there is no further information available regarding the terms of the loan or fees payable, further guidance is required from the Government.
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