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Monthly archive for July 2020

How To Move Without Selling

How To Move Without Selling

Generally speaking when people are buying a new home, they need to sell their old home. However, if you have enough money to buy the new house you may want to consider renting out your home instead of selling it. This is often a more financially sensible decision. In fact you could end up with a valuable asset generating regular income. Who doesn’t want that for a rainy day?

Renting your home instead of selling can also give you an extra layer of flexibility. For example, if you have to move away for long contract work, having your home waiting for your return, but bringing in money while you are away, can be a great idea.

If you have had the home for a long period of time you can feel emotionally attached to it. This is especially the case if it is a family home with memories. By keeping your old home to rent out, so you have the option to move back in, can make the moving process easier for you and your family.

We would recommend that you speak to our mortgage advisor as they may be able to help you jeep your property, while getting into the buy to let game to, all while buying your next new home.

Renting out your home instead of selling it will also introduce you to the world of property investment. You may find that owning multiple properties really works for you personally and financially. Many people that have one home rented out will look for the next home to rent out as they enjoy the experience (and financial rewards) so much.

Here at Letters Group we can assure you that the property market is always changing. Homes in more affluent areas can change hugely in price from one year to the next. If you have found the home of your dreams but are not happy with the asking price for your home, then rent it out instead. Then, when you are happy with the new asking price you can sell your home.

The team at Letters Group are very experienced in the selling of home, buying of homes and rented properties too. We can help you every step of the way to ensure you make the right decision for your home and your future.

If you are considering turning your home into a rental property there are a few things you will need to do. Speak to your mortgage company to ensure you can put your home up for rent. You also need to speak to our team about the local rental market and house market. We are here to help you. Call our mortgage advisors or lettings team now.

What Is Stamp Duty And What Are The Changes?

What Is Stamp Duty And What Are The Changes?

You will have seen in the media and from our social media posts that stamp duty has changed recently. However, you may be wondering what that actually means for you. If you haven’t bought a home before you may not even be aware of stamp duty. This is what we want to look at in this blog post.

What Is Stamp Duty?

Stamp duty is a land tax. It is a lump-sum, tax that anyone buying a property or piece of land costing more than a set amount will have to pay. Based on the type and cost of land or property you are buying, the cost of stamp duty will change.

How Much Is Stamp Duty?

Under the current system in England, where the new changes will apply, if you are buying a property as your main residence, the stamp duty costs will be as follows;

  • For properties purchased for up to £125,000 there will be no stamp duty tax.
  • For properties purchased between £125,001 and £250,000 stamp duty will be an additional 2% of the cost of the property.
  • For properties purchased between £250,001 and £925,000 stamp duty will be an additional 5% of the cost of the property.
  • For properties purchased between £925,001 and £1,500,000 stamp duty will be an additional 10% of the cost of the property.
  • For properties purchased over £1,500,001 stamp duty will be an additional 12% of the cost of the property.

However, if you are a first time buyer in England the stamp duty tax is different. The government have changed this for first time buyers to help get them on the housing ladder. First time buyers purchasing a property up to £500,000 will pay no stamp duty on the first £300,000. They will then pay 5% stamp duty on any portion between £300,001 and £500,000. If the property is worth more than £500,000 and you are a first time buyer, the costs as above will stand.

What Has Changed?

Further to the coronavirus outbreak and subsequent lockdown, the government have created what is referred to as a ‘stamp duty holiday’. This means that nobody will pay stamp duty when purchasing a home up to the value of £500,000.

How Much Money Will This Save Home Buyers?

Under this temporary measure, the higher value your home, the more you will save. The chancellor has said that the average saving will be around £4,500 per home buyer. The maximum that could be saved by a buyer is £15,000.

Want to know more? Call our team of friendly and experienced estate agents in Peterborough.