Buying a first home is one of the biggest moments of a person’s life, but whatever number property you are on this purchase is one of the most costly things you will ever do. However, with a little preparation and research, such as stamp duty planning, there are ways you can save a little cash.
It can be all too tempting to go rushing in when you view your dream property by making an offer, but one of the most vital things you should do first is calculate the entire cost of the purchase.
For example, you may have a budget of £800,000 made up of a large value mortgage and savings or the sale of your previous home and beyond which you are unable to go. If you fall in love with a property being sold for this sum, put in an offer of £750,000 and it is accepted, you might think you have bagged a bargain.
However, there are many additional costs that you should add to this figure that could still push the purchase over your limit.
Solicitors’ charges are one consideration, as is the product fee you might have to pay for your mortgage and the searches that must be carried out as part of the sale.
If you are having your own surveys conducted as well then you might also reasonably expect these to reveal at least a few repairs that need to be done.
And then there is stamp duty land tax (SDLT), which could well be the most expensive thing you pay for after the actual building. On the £750,000 offer you have made, you would need to fork out £30,000 in the form of this tax.
Altogether, this may be enough to push you out of the budget you have set yourself and could mean you have to back out of the sale – so it is always best to get a rough idea of what you are likely to spend beforehand.
In addition to being prepared, there are other steps you can take to save some of your cash when buying a home. Shop around when looking for a solicitor rather than going with the first one you speak to. You can also use the findings of the surveys you have done as the basis for returning to the vendor with a reduced offer.
Remember, it always pays to haggle, particularly if there are fixtures and fittings being included in the sale. You can always ask your solicitor to have these removed from the process if you think you are being charged over the odds.
You could also speak with a professional broker when you are looking for your mortgage. Although some banks and building societies do not work with them, it can still be a useful way of getting an idea of what is available, as they will search the whole market to find the best loan for your circumstances.
And if you are now asking yourself how to avoid paying stamp duty, you might be pleased to hear that there is an answer – through a specialist mitigation provider.
Stamp duty mitigation is completely legal and could end up substantially reducing the amount of SDLT you have to pay.
Make sure you select a provider with a good track record for success with HM Revenue and Customs and who consults with the UK’s top lawyers during the non-aggressive planning process.
By following these steps, you may be able to save the cash you need to afford the property of your dreams.
