Do I need to pay Stamp Duty?
You may already know you have to pay a tax when purchasing a property in England and Northern Ireland, this is called Stamp Duty Land Tax, or Stamp Duty for short!
(The tax is slightly different if you are purchasing in Scotland, this is called Land and Buildings Transaction Tax and in Wales you pay Land Transaction Tax.)
Currently, the threshold for paying SDLT is £125,000 for residential properties, and £150,000 for land or property that is not bought for residential purposes. This means you will pay if you are purchasing a house to live in for £125,000 or more.
Luckily for first time buyers, there are different rules. If you are purchasing your first home, you will get a discount! What this means is you can buy your first home for up to £300,000 (or £500,000 in London) before you need to pay.
How much is it going to cost me?
Stamp Duty is calculated as a percentage of the purchase property price. You usually pay SDLT in increasing percentages according to the price of the property. In basic terms, the more expensive the property, the more Stamp Duty you pay.
It’s also worth mentioning that you pay a higher rate Stamp Duty for second homes and buy to let properties!
But don’t worry too much, our advisers at Vantage Mortgages in Banbury, will be able to work out exactly what Stamp Duty you need to pay, along with any other costs associated when taking out your Mortgage.