For those who want to buy or sell (or both) during the stamp duty holiday, Stephen Ward of the Council for Licensed Conveyancers explains how to secure a successful deal before the deadline
The last two months have seen the property market rebound with some vigour as buyers and sellers alike are finally able to move house.
With the chancellor’s stamp duty holiday incentive, it is an excellent time to do so, but as ever in the housing market, the buyer must be wary.
Except this time, it’s not just buyers who need to be aware, but also sellers.
The chancellor’s stamp duty holiday until March next year has provided a much-needed boost for the property market but the lift is now creating a backlog for estate agents, mortgage brokers and conveyancers who are trying to service record demand.
So, if you’re planning to buy or sell in the next six months, and want to take advantage of the stamp duty holiday – what do you need to know?
Time is of the essence
Six months may sound like a long time, and certainly with summer starting to recede and schools only just returning, next spring feels like a world away. However, in the business of buying and selling properties it’s not as long as you might think.
The average property purchase in the UK takes around 14 weeks, with some commentators saying it’s now taking 19 weeks.
That allows time for conveyancers to be appointed, searches and legal work to be undertaken, contracts agreed and exchanged and completion to take place. It also assumes a fairly straightforward transaction with no hiccups in the chain.
As a guideline only, in order to complete by mid-March so as not to skate too closely to the deadline, buyers and sellers will need to have agreed the deal by early December. Which means a property will need to be listed with an estate agent by early October to allow enough time for photos, marketing and of course, viewings.
So, with all aspects of the home buying process extremely busy due to demand what can you do to ensure your property transaction moves along efficiently?
Advice to sellers
If you think your property would be of interest to those wanting to take advantage of the stamp duty holiday, and you’re keen to sell, you need to contact estate agents for valuations quickly. Once you’ve received your valuations, make the decision on who to list with promptly. Not in haste, do your research, but don’t dally.
It’s also a good time to start pulling together all the paper work you’ll need. A quick checklist of the essentials is below:
- Mortgage details
- Deeds
- Details of work undertaken previously, and during your ownership of the house.
- Bank account details and last three months statements if you’ll be changing your mortgage
- Last three months utility bills
- D such as your passport
While your property is being marketed, take the time to speak to your current mortgage provider about your options and whether you’ll be paying your mortgage off, porting it to a new property or ending your deal early.
It would also be a good idea to research and find the conveyancer you’ll want to use during this period too.
Advice for buyers
If you’ve made the decision to buy, and you’re hoping to complete in time to take advantage of the stamp duty holiday you’ll also need to be organised and efficient.
However, it’s important that you don’t act in haste and don’t allow tight timeframes to stop you ensuring you do your due diligence. You are still going to be making probably the biggest purchase of your life.
Ensure you are registered with all the local estate agents in the vicinity of where you want to buy, and check online property sites such as Zoopla, OntheMarket and Rightmove – setting up alerts if necessary.
Speak to a mortgage provider and get an agreement in principle. Much is being conducted online at the moment, removing the need for face to face meetings and identity checks, but make sure that if you don’t feel clear on what’s being asked, or you’re signing up to, then ask.
Life may be slightly different at the moment, but you should still ensure you are comfortable with all the information you’re provided with.
Take the time while you’re doing viewings to get all your paperwork together. A quick checklist of the essentials is below:
- Mortgage agreement in principle
- Bank account details and last three months statements
- Last three months utility bills
- Last three months’ pay slips
- Your last P60 form
- D such as your passport
It would also be a good idea to start researching and contacting conveyancers to see if they’re currently able to take on new work, in good time.
Once you’ve found your dream property and had an offer accepted, the process will be underway. The more efficiently you can provide paperwork and respond to queries from your conveyancer and mortgage provider, the smoother the process will be.
If you are about to start the process of buying or selling a home you can find a CLC regulated conveyancer on our website here.
Stephen Ward is director of strategy and external relations at the Council for Licensed Conveyancers
