How to beat the Stamp Duty Deadline
Today it was reported by an industry website that “a leading firm of conveyancers will this week tell new clients that their property purchases are likely to miss the stamp duty holiday deadline” (https://www.estateagenttoday.co.uk/breaking-news/2020/11/conveyancing-firm-to-tell-clients-they-will-miss-stamp-duty-holiday).
This has the potential to send waves of panic through those who are wishing to move before the Stamp Duty Holiday ends (March 31st).
Before panic sets in and despite the fact that we have certainly seen the selling and buying process taking longer than usual, the delays mentioned by this conveyancing firm are very generic and their calculations inconsistent and it’s important that we look at the validity of this in local terms.
Delays in Mortgages
The increase in demand for mortgages is very apparent. Not only are the banks delayed in their decision making process at the moment due to the sheer volume of applications, they have also had to make adjustments to the way they work due to COVID. This means that what was once a seamless process for them has been hit two-fold. Mortgages are taking longer to approve - it is important that you have all your documents in order before you apply for a mortgage to help quicken the process. As a rule of thumb, the smaller your deposit, the more hoops you will have to jump through. In this instance it is advisable to have a good mortgage broker who can guide you through.
Delays in Surveys
There is only a finite number of surveyors available. During the past few months where a buyer has a significant deposit, we have seen lenders return to performing desktop valuations to prevent bottlenecks. If a physical valuation is needed, it is the lender who will determine how long this might take to get booked in. Very often a delay is caused by administration processing times. However, it is not uncommon for us to see a 3 or 4 week wait for a mortgage valuation or survey.
Solicitors
It’s important to understand the process of choosing either a Solicitor or a Licensed Conveyancer and their role in the sale and purchase of your home. Conveyancing is the legal term for transferring ownership of property, whether you are buying or selling.
A solicitor or conveyancer will:
- handle contracts
- give legal advice
- carry out local council searches
- deal with the Land Registry, and
- transfer the funds to pay for your property.
Solicitors are qualified lawyers, so they can offer a full range of legal services.
Licenced conveyancers are specialised in property but can’t deal with complex legal issues.
(As defined by https://www.moneyadviceservice.org.uk)
Conveyancers will sometimes come in cheaper than Solicitors, but this is not a good reason to choose a conveyancing firm over a firm of solicitors. Although price is important- whoever you choose, you need to be fully confident that they will be able to push your sale and purchase through to completion, along with your estate agent. Otherwise a cheap legal solution could end up costing you a lot more, especially if you are counting on completing before 31st March.
We asked 2 solicitors that we recommend what the key is to making sure that a home move completes before 31st March.
Victoria Olumbe, who is Consultant Residential Conveyancing Solicitor at Setfords, says:
“It is important to note that where clients are in the conveyancing process and are looking to meet the SDLT holiday deadline in good time, they should work closely with all parties involved, including arranging of any surveys and searches from the earliest opportunity possible. It is also extremely important to keep on top of mortgage applications and follow this up whether via the mortgage broker or directly with the lender, to avoid unnecessary delays.”
Eleanor Richardson, an experienced Property Lawyer and Partner at Keystone Law thinks that “As long as people have everything in place and chains are complete, there is no reason why we shouldn’t be able to complete transactions started today before March. In fact, I’m still taking on clients who want to complete in early January and cash buyers who want to complete before Christmas. I’ve only had one matter where searches have taken more than 2 weeks to come back and that was not a local purchase. I have submitted searches today for a property in Croydon and the searches are due back on the 17th November, which is not a bad turnaround! The main problem that I am finding is with lenders making a decision. So my advice is, if you want to make sure you can take advantage of the stamp duty holiday, make sure the chain is complete, make sure everyone has the same objective and make sure everyone has their mortgage offer in progress with a lender who is able to process it in time”
Therefore at this pivotal time it is important to choose the right team to guide you through your house sale and purchase and one that can commit to the time frames that you need them to work to.
To discuss any aspect of moving home you can call us for a chat on 020 8660 6674 or send us an email at toby@walterandmair.co.uk. Whatever your plans, chatting them through confidentially, can help.
