For first-time buyers, dealing with stamp duty can be a burden and a hassle. The rates are different in England, Wales and Scotland, but the same rule applies ‒ you won’t own your home until the tax is paid. The charge can be a frustrating consideration on top of a number of outlays required when buying a home. The good news is that for first time buyers in England, Stamp Duty is not paid on properties costing under £300,000.
Also, there are certain ways to reduce the overall costs of stamp duty. The first step is to calculate your land tax stamp duty to know the cost and prepare for it. Once you know the cost, you can find ways to minimise the impact on your budget.
Be Prepared to Negotiate
Negotiating may not be everyone’s cup of tea, but to make the most of the property deals available, you need to be ready for some hard bargaining or find someone else who can do it for you.
Choose New Property
One way new home builders attract customers is to offer incentives. Make sure to ask and maybe bargain about the incentives to make the most of their offer. Sometimes housing developers offer to pay part or all your stamp duty for you.
Obtain a Cash Back Mortgage
Look for lenders who offer cash back mortgages. This will allow you to receive a certain cash amount back from your lender in exchange for completing your mortgage. You can use this cash back to cover the cost of the stamp duty. Take note that not all lenders offer this option, so what deals are available and be prepared to shop around.
Being wise and informed about stamp duty; don’t let the tax be an unpleasant surprise when buying your new home. Good luck and enjoy house hunting!