Table of Contents
- What’s your home like?
- How did you handle to afford it?
- Why did you need to pay stamp obligation?
- What was it like shifting throughout lockdown?
- How did you afford the furnishings?
- How are you planning on paying again the Assist to Purchase mortgage?
- How did it really feel lastly getting the keys?
WHEN Liam Stannard and his fiance Alex Myers purchased their £525,000 three-bed house throughout lockdown they felt fortunate to have the ability to transfer.
The coronavirus pandemic had forced the housing market to a near standstill with house strikes banned for seven weeks.
Alex Myers and Liam Stannard purchased their house in the course of the coronavirus lockdown
However the couple pressed forward, finishing their buy of a brand new construct three-bed in Wokingham on the finish of April.
It meant they might escape their rented two-bed flat in Clapham in the course of the peak of lockdown.
They used a loophole in the rules, which allowed patrons to securely transfer into properties in the event that they had been already empty.
However shifting throughout a pandemic introduced itself with a complete new set of challenges.
The brand new construct home price them £525,000 and it has three bedrooms
To restrict who they got here into contact with the couple moved all of their stuff themselves – though they by no means predicted it might take three 80 mile spherical journeys to do it.
After 12-hours, they had been exhausted however spent the primary night time of their new house on a blow up mattress – they couldn’t gather the brand new one from their mother and father’ till the next day.
Earlier than the coronavirus disaster they’d pushed ahead their shifting date to the top of April quite than Could, so the property builders may hit their gross sales goal.
As a sweetener the builders supplied to pay half of their £16,000 stamp obligation invoice.
However the couple had been pissed off when Chancellor Rishi Sunak introduced a stamp duty relief on all properties up to £500,000.
If they’d solely delayed their shifting date by a number of extra weeks they might have been nearly £7,000 richer.
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“We had been understandably slightly gutted that we may have saved a major sum on our stamp obligation,” Liam instructed The Solar.
“But it surely did not take away from the general home shifting expertise.”
Liam has since written to Mr Sunak and his native MP to plead that the federal government backdate the tax break to the beginning of lockdown.
However because the tax vacation is designed to encourage movers and assist kickstart the housing market not reward those that have already purchased property, he’s unlikely to achieve success.
What’s your home like?
We dwell in a three-bed indifferent home in Mulberry View growth in Wokingham.
It’s a brand new construct and I’ll be sincere, by no means in my wildest desires did I believe that I might ever be capable to personal one thing like this. It’s stunning.
The couple have purchased nearly all of their furnishings on a bank card
What’s stamp obligation?
STAMP obligation land tax (SDLT) is a lump sum fee anybody shopping for a property or piece of land over a sure worth has to pay.
Up till July 8, most house-buyers in England and Northern Eire needed to pay stamp obligation on properties over £125,000.
This was quickly elevated to £500,000 till March 31, 2021 within the authorities’s mini-Price range in July 2020.
The speed a purchaser has to fork out varies relying on the value and sort of property.
Charges are totally different relying on whether or not it’s residential, a second house or buy-to-let, or whether or not you are a first-time purchaser.
The standard system in England for residential properties means:
- First-time patrons pay nothing on properties beneath £300,000 (and aid accessible on properties of as much as £500,000)
- You pay nothing if the property prices beneath £125,000
- You pay 2 per cent whether it is value between £125,001 and £250,000
- You pay 5 per cent if between £250,001 and as much as £925,000
- You pay 10 per cent whether it is between £925,001 and £1.5million
- You pay 12 per cent on something over £1.5million
For second houses or purchase to let properties:
- 3 per cent on purchases as much as 125,000
- 5 per cent on purchases between £125,001 and £250,000
- 8 per cent on purchases above £250,001 and £925,000
- 13 per cent on purchases above £925,001 and £1.5 million
- 15 per cent on purchases above £1.5 million
Downstairs, we’ve received a lounge and an open plan kitchen-diner, whereas upstairs there are three bedrooms and a rest room.
The master suite has an en suite and the smallest room at present has a pull out couch mattress in there – we’re hoping to show it right into a walk-in wardrobe.
We’ve additionally received a backyard across the again, a drive and a storage.
The storage can be joined to subsequent door’s but it surely hasn’t really been constructed but.
How did you handle to afford it?
All through our time renting a two-bed flat in Clapham, London, we’d managed to avoid wasting round £6,000 on our personal.
However we had been additionally lucky sufficient to come back into some inheritance and had assist from our mother and father, which meant we had simply over £26,000 to place in direction of shopping for someplace.
The sofas that they’d ordered did not flip up till weeks after shifting in due to the lockdown
Our home was available on the market for £549,950 however I knew we had been in a very good place to get a deal because it was January and plenty of patrons had been holding out for after Brexit.
I attempted to haggle with the builders and supplied £500,000 however they flat out refused.
I defined that we don’t get the first-time buyer stamp duty relief on greater than that quantity, which was a sticking level for us.
In the long run, the developer agreed to satisfy us within the center at £525,000 and mentioned that they’d cowl half of the £16,230 stamp obligation price.
In addition they threw in one other £1,000 to go in direction of our closing month’s hire if we introduced the shifting date ahead from when our tenancy ended on the finish of Could to April so they might meet their finish of yr targets, which we agreed to do.
Upstairs there are three bedrooms and a rest room in addition to an en suite
The pair moved into the home on the finish of April
We put down a 5 per cent deposit value £26,250 and used the Assist to Purchase fairness mortgage value £105,000 to carry down the price of the mortgage.
Our mortgage is for £393,750, which we took out over 37 years at a charge of 1.54 per cent. It’s a two yr fixed-rate deal.
Now, we pay much less on our month-to-month mortgage repayments than we did in hire for the flat in Clapham – our mortgage is £1,156 a month and hire was £1,720 a month.
Why did you need to pay stamp obligation?
The primary-time purchaser stamp obligation aid applies to the primary £300,000 of a property’s worth.
After that, it is charged at a charge of 5 per cent as much as £500,000.
However if you are going to buy a home greater than the £500,000 threshold then you definitely’re not entitled to the first-time purchaser tax break in any respect and also you’re charged at regular charges.
That is why our invoice was so costly and we had been lucky to have been capable of negotiate half of the charges to be paid for by the builders.
But when we might accomplished on the home after the Chancellor’s new stamp obligation aid, then it might have solely needed to pay £1,250.
What was it like shifting throughout lockdown?
We accomplished on April 29 and determined to maneuver on April 30.
By the point it got here to truly shifting home, we had been determined to go away our flat in London.
We had been each working from house throughout lockdown and it was not the one – there wasn’t sufficient room for each of us.
However we had been additionally nervous that we wouldn’t be capable to transfer, though when authorities steering was launched it mentioned that you can transfer if the property was empty.
They had been capable of choose up most of their new furnishings which had been ordered and shops at Alex’s mum’s home
The home is on a brand new growth which remains to be within the progress of being constructed
The third and smaller bed room is being made right into a walk-in wardrobe
We determined to do all of it ourselves as a result of we weren’t eager on utilizing a removing firm after we had been all alleged to be social distancing and staying indoors.
Our Clapham flat was totally furnished so we had to purchase all the furnishings for our new place ourselves.
We had been ordering all of it to my mother and father home in Essex, in addition to Alex’s mum’s home in West Berkshire, with the plan being that my dad would rent a van to choose it up and produce it to us on shifting day.
However due to lockdown we determined to maneuver all of our stuff from the flat to the home in our two vehicles.
It was tipping it down and it took us three 80 mile spherical journeys to get every thing from London to Wokingham.
On the primary night time, the couple did not have a mattress to sleep on so purchased a brief blow up one
There is a backyard across the again and a driveway and storage on the entrance
The entire ordeal took us 12 hours. We didn’t have a mattress so we purchased a blow up one to sleep on in our first night time in the home.
The following day, my dad got here to choose me up within the van to choose up the furnishings from Alex’s mum’s home.
All of us wore masks and gloves. I couldn’t go over to see my mum as a result of she’s weak and was shielding.
As quickly as he’d helped us and the furnishings was in, dad shot off and left us to get on with it.
We had been gutted we may present it off to family and friends immediately but it surely was so well worth the stress.
How did you afford the furnishings?
As we had nothing to begin with, we determined to place all the huge furnishings prices on our bank card and had been paying it again month-to-month. All in, it was about £6,000.
The one factor we didn’t get till a month later was our sofas from DFS as a result of they weren’t delivering throughout lockdown.
They did finally arrive although – within the meantime we used two tub chairs Alex’s mum had given us.
How are you planning on paying again the Assist to Purchase mortgage?
We’re fairly assured property costs on this space will improve over the following 5 years so we’re simply planning on paying it again after we come to promote it.
What assistance is on the market for first-time patrons?
GETTING on the property ladder can really feel like a frightening job however there are schemes on the market to assist first-time patrons have their very own house.
Assist to Purchase Isa – It is a tax-free financial savings account the place for each £200 you save, the Authorities will add an additional £50. However there is a most restrict of £3,000 which is paid to your solicitor while you transfer. These accounts have now closed to new candidates however those that already maintain one have till November 2029 to make use of it.
Assist to Purchase fairness mortgage – The Authorities will lend you as much as 20 per cent of the house’s worth – or 40 per cent in London – after you have put down a 5 per cent deposit. The mortgage is on high of a traditional mortgage however it could solely be used to purchase a brand new construct property.
Lifetime Isa – That is one other Authorities scheme that provides anybody aged 18 to 39 the prospect to avoid wasting tax-free and get a bonus of as much as £32,000 in direction of their first house. It can save you as much as £4,000 a yr and the Authorities will add 25 per cent on high.
Shared possession – Co-owning with a housing affiliation means you should buy part of the property and pay hire on the remaining quantity. You should purchase something from 25 to 75 per cent of the property however you are restricted to particular ones.
“First dibs” in London – London Mayor Sadiq Khan is engaged on a scheme that may limit gross sales of all new-build houses within the capital as much as £350,000 to UK patrons for 3 months earlier than any abroad advertising and marketing can happen.
Starter Residence Initiative – A Authorities scheme that may see 200,000 new-build houses in England bought to first-time patrons with a 20 per cent low cost by 2020. To obtain updates on the progress of those houses you’ll be able to register your curiosity on the Starter Homes web site.
Neither of us are nervous concerning the additional price, even when it signifies that we’re being charged curiosity on it after the five-year interest-free interval.
By then, we’d have invested extra fairness in the home too so we don’t really feel like we’ll be lacking out on something after we promote it.
How did it really feel lastly getting the keys?
Due to lockdown and social distancing guidelines, the builders needed to cross us our keys from a distance after which depart and that was it.
They did apologise that they couldn’t give us a tour round our new house or something but it surely didn’t matter – we had been buzzing.
However on the similar time, it was a bit flat over the following few days as a result of we couldn’t invite family and friends over.
Now although, we’ve been capable of present buddies round which has made all of the distinction.