Moving home? Here are the keys to completing before stamp duty rises | Stamp duty

home buyers and sellers in England and Northern Ireland must act quickly to ensure property sales are completed before new stamp duty rules come into effect next April. Bills for many buyers will increase, and solicitors and estate agents are expected to be particularly busy in the new year, rushing to close deals.

“We are likely to see a surge in demand, putting pressure on estate agents, solicitors and mortgage lenders alike,” said Andrew Boast of conveyancing company Sam Conveyancing.

Under the changes, movers will start paying tax on any property over £125,000, down from £250,000 now. That means if you’re buying for £266,000 – the average UK sale price according to Nationwide – you’ll pay £2,500 more.

First-time buyers will have to pay for homes worth more than £300,000. This figure is currently £425,000 – and this higher threshold will only apply if the property is worth £500,000 or less, instead of £625 000 now.

In London, the average price is £524,000, according to Nationwide. And because first-time buyers will have to pay the same as everyone else, once the price exceeds £500,000, they will pay £11,250 more than under the current regime. Website Rightmove has reported a rise in demand from first-time buyers in London since the Budget.

The change marks the end of special measures put in place during Liz Truss’ 2022 minibudget.

So how can you make sure a sale goes smoothly and quickly?

For buyers

Control your finances when you submit an offer Having a mortgage in principle (MIP) will show sellers that you’re willing to move quickly, says Boast. This is not a binding agreement but will be useful in a competitive market.

“Your final mortgage offer will depend on a full application and checks and any changes in personal circumstances between the MIP and the final mortgage.”

If you receive money from your family or need to sell investments, understand the legal requirements so that the source of the money can be traced to comply with anti-money laundering regulations, says Lorna du Sautwy of law firm BDB Pitmans.

“Collect the relevant documents for your lawyers and other professional advisers to avoid panicking at the last minute when you’re ready to start transferring money,” she says. And deal with potential issues early on, such as pulling bank statements and payslips, to avoid delays if the sale starts to move quickly, says Justin Moy of EHF Mortgages.

Do your searches early Seek transfer orders through your solicitor – they will tell you if there are any issues such as planning proposals, flood risks or water supply – as soon as the contracts arrive from the seller, Boast says. Applying for a fast search can speed up the process by up to four weeks, says Zeid Patel, director at Highcastle Estates.

Book a survey as soon as possible “It can identify issues that may require negotiation and provide a solid basis for requesting repairs or price reductions from the seller. This preparation is essential as any delays arising from financial, legal or repair negotiations can be costly if you try to complete before the changes,” says Boast.

Be “processable” If you’re not a cash or chain shopper, the next best thing is to get all your ducks in a row as early as possible, says Phil Spencer of advice site Move iQ. “Put your own property on the market at a realistic price,” he says. “Be pragmatic. Don’t choose a property you don’t like because it’s likely to be a quick sale. And don’t pay more than it’s worth to you just because you want to finish before stamp duty changes.

If you need to sell too

Price the sale competitively Getting the price right from the start is key, according to Paul Hardy of Newcastle-based LSL Ownership Services. He says overestimating and then reducing them later can be counterproductive. “Those that are subject to price reductions not only take longer to sell, but are statistically less likely to sell,” he says.

Choose the right real estate agent An experienced local real estate agent should be expected to price a home realistically based on their knowledge of the market and the data they have collected. They will also clearly communicate with your solicitor, says Claire Langford, head of residential conveyancing at Roythornes Solicitors. “A smooth flow of information can help avoid stress or delays, ensuring the transaction is as seamless as possible,” she says.

Be prepared for legal requirements Just like you need a real estate agent who can communicate, you need an attorney who can do the same. Look for recommendations from friends and relatives, but also check if they specialize in conveyancing or property law, says Helmut Elstner, managing director of The Mortgage Clinic.

Those approved by the Law Society’s Conveyancing Quality Scheme (CQS) will be qualified in residential sales, he says. Boast says they should also be able to receive digital documents and process your progress online to bypass any postal delays around Christmas.

Make sure documents such as property information forms and EPC certificates are in order. Du Sautoy says if there has been work on the property, collect planning and building control approvals, certificates and warranties. “If you are selling an apartment, order the management package [containing the service charge and building management information] as soon as possible after putting the property on the market,” she says.

Set a deadline Tell everyone involved the completion date, which should be realistic. Property investor Abby Hookway says: “When MOS [Memorandum of Sale] is sent from an estate agent to a solicitor, it must clearly state the date you are working as it is then legally binding.’ This must be no less than seven days before the April deadline for changes.

Choose the right type of buyer First-time buyers stand to lose the most from the stamp duty changes, so Elstner suggests they may be the most anxious to close the deal before then. He adds: “Given the timescales, cash buyers or those with mortgage agreements can often act quicker. Buyers in long chains should be avoided as they may increase the possibility of delays or omissions.