What is a buy to let property?
A buy to let property is a residential property purchased with the sole intention of letting or renting out to tenants. Buy to let properties are a fantastic source of income and a very popular investment.
Can I get a buy to let property with a mortgage?
Yes, you can obtain a buy to let property with a buy to let mortgage. If you’re not a cash buyer but looking to purchase a buy to let property you will not be able to do this with a standard residential mortgage. Both mortgages have similarities but there are some differences:
- The amount you can borrow from your mortgage lender will be dependent on how much rent the property can generate.
- Buy to let lenders have minimum salary limitations, this varies from lender to lender
- Interest rates are higher due to the higher risk
- The minimum deposit is typically higher
- Arrangement fees are also typically higher
A broker would be recommended in the instance of becoming a first time buy to let property owner so they can provide you with insight on the best mortgage lenders.
Do you find yourself questioning the term? When new clients come aboard and look to purchase, they often aren’t aware of where they can find or access a Stamp Duty Calculator UK.
What is stamp duty?
A quick definition of Stamp Duty is that it is applied to all legal properties across the United Kingdom, in the form of tax.
Stamp Duty is applicable across the entire United Kingdom, to all types of property. It is an imposed levy, set by the government and is paid to HMRC (Her Majesty’s Revenue and Customs). It is valued against property price in percentage and is applied to each property via residential property rates. When you look to purchase a property, you may not be aware of the amount payable, you can easily access a stamp duty calculator UK online and it would be best to use the stamp Duty Calculator UK available on the government website. Please remember it is your duty to budget for this cost, when you look to purchase a property and it is best to obtain this information before proceeding with a property purchase.
What is the stamp duty threshold?
For a purchase of a property it is crucial to know what is the stamp duty threshold so that stamp duty land tax can be calculated correctly. You need to pay tax on property you buy which is above the threshold. What is the stamp duty threshold on land tax for residential properties?
The current threshold is £250.000 and for non-residential £150,000 is only until 1 October 2021. After this date the threshold will be £125,000 for residential properties and £150,000 for non-residential What is stamp duty threshold for first time buyers? There is different stamp duty to pay if you are a first time buyer, if you already own a property and you are buying an additional property or if you’re a non U.K resident. First time buyers will not have to pay tax duties on the first £300,000 on properties under £500,000 or under.
Our recommendation: getting it right the first time will correct stamp duty that is paid on time and that penalty is avoided.
Do solicitors inform you of where to access a Stamp Duty Calculator UK in their conveyancing quote?
A short answer to the above question is that it is for you to understand what this is, how it works and how it is paid. However, the estimate provided in your quote is solely a rough guide of what is applicable to you. As part of the conveyancing transaction, you will be required to complete a Stamp Duty Land Tax form and declaration.
Your solicitors will then use this information to calculate the Stamp Duty Land Tax payable. It will form part of the final balance before completion monies are requested from you. It is then paid to HMRC following the completion of your purchase.
As stated above, you must also carry out your own checks by utilising the government Stamp Duty Calculator UK tool and approach the relevant authority with your questions, as they cannot give any tax advice and would not wish to delay your matter.
You can access the government SDLT calculator by following the below link: https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
What are conveyancing Solicitor Fees?
When you’re shopping in a store and looking to buy an item/object that does not have a direct price, you find yourself asking the cashier/store assistant how much it costs? Well, it is similar in conveyancing.
When you opt for a quote from our firm, you are provided with an estimate, guiding you of our conveyancing solicitor fees. It will include our basic costs and then all other services/optional extras that may be applicable during your transaction. You are provided the service that you will pay for and it will contain various aspects, such as – ID checks, obtaining title documentation from HMLR – Her Majesty’s Land Registry, priority service, lender work and more.
You can get in touch with licensed conveyancers in London like AVRillo for a quick online conveyancing quote. They are also the leading residential conveyancing solicitors in Plymouth.
How are Conveyancing Solicitor Fees calculated?
Each conveyancing/property law firm will set their own costs. When you contact us for a quote, either online or via call you are prompted with questions that may be applicable to your transaction. Following this, our client services team will provide you with an estimate of the costs applying at that stage. New clients have to often be reminded that all costs are referred to in our terms of business.
Near to completion of your matter you are provided with a completion statement outlining the final costs of your Conveyancing Solicitor Fees and each cost subject is married up against the fee, making it clear and easy for you to follow.
Our advice to you, is to read all the documentation provided to you in your quote, especially the costs and other services/optional extras document.