Great news to all the buyers and sellers as Chancellor Sunak made the stamp duty holiday extension announcement on 3 March. The stamp duty holiday which was soon to expire on 31 March 2021, is now extended until 30 June 2021. After this date the start of stamp duty will be £250,000 until the end of September whereby the rate will return back to the standard level of £125,000.
The announcement also included a new mortgage guarantee budget whereby at the start of April the Government is aiming to provide a guarantee to lenders allowing them to offer mortgages to buyers with just 5% deposit available. This will be on homes with a value of up to £600,000. By introducing this scheme the Government is looking to help allow more people to get on the property ladder.
With the new changes to SDLT it is also important to note that from 1 April 2021 a surcharge will apply to qualifying Non-UK Residents purchasing residential property in England and Northern Ireland.
What is meant by Non-UK Resident: you will be classified as a Non-UK Resident for SDLT calculation if you are not present in the UK for 183 days or more in the 12 months before the effective date, being the completion date, of the purchase. Please note that trusts and companies will have a different residency rules. More guidance will be issued on this on 1 April 2021.