Buying or Selling a Property Quickly: How to avoid April’s stamp duty changes
Lee Gaddes, Head of arch.law convey at arch.law, shares his expert tips to help you navigate the process efficiently and stay ahead of the upcoming stamp duty changes
For Sellers
Price the sale competitively
If a property is priced competitively, it will attract more interest and should sell quicker. As we approach 31 March 2025, potential buyers purchasing above £125,000 will factor in the increase in stamp duty land tax (SDLT) which will cost them up to an additional £2500. The closer we get to the deadline potential buyers may look to reduce their offers to factor in the potential increase in SDLT.
Many buyers search in specific bands (e.g. under £500,000), so setting a price just below a threshold can maximise visibility. Pricing at £499,000 rather than £505,000, for instance, may capture more attention.
Pricing too high can deter buyers and lead to a stale listing which is not what sellers want with SDLT looming. Be competitive, and spark more interest and even bidding wars, which can lead to a better final sale price than if you start too high.
Prepare for the legal process as soon as possible
Instruct your property lawyer at the outset and ideally once the property is put on the market for sale. The property lawyer can work with a seller to prepare the legal pack in advance and be ready to issue a Contract/Pack as soon as an offer is accepted.
Gather essential paperwork, including property deeds, energy performance certificates, planning permissions, and building regulatory certificates. Having these ready will help streamline the process.
Check for issues such as boundary disputes, restrictive covenants, or planning violations. Resolving these beforehand can prevent delays.
Complete Property Information Forms – these include the TA6 form (general property info) and TA10 (fittings and contents). This will save time once an offer is made.
Clear out unnecessary items – start decluttering, it’s practical for both viewings and for the eventual packing process, reducing stress later on.
Set a target end date
It is important to discuss a target completion date with all parties at the outset. To help achieve this all sellers and buyers should be ready, willing, and able to move. Parties should not plan holidays around the target completion date – it may sound obvious – but it happens!
As the transaction progresses, the seller should reply to all enquiries and requests for information promptly, and sign documents early in the process. These points will assist in the target completion date being achieved before 31 March 2025.
Pick the right type of buyer
A first time buyer, for example, will not be affected by the 31 March 2025 deadline.
Consider chain-free buyers to avoid waiting for several parties to agree a date that suits everyone which could delay completion and trigger the higher SDLT rate.
Prioritise buyers who are in a strong financial position – cash buyers or those with a mortgage in principle are generally more reliable and can expedite the process, reducing the risk of delays due to financing.
Gauge commitment and flexibility – look for a buyer who is eager to proceed quickly and willing to be flexible with timelines but not with the 31 March 2025 date. Serious buyers who will align with the seller’s target completion date can make the sale smoother.
For buyers
Have your finances in check
Buyers should have liquid funds with instant access and complete proof and source of funds checks at the outset.
If using mortgage finance get a mortgage agreement in principle before making an offer. The mortgage application can be finalised as soon as offer is made. It also provides a clear idea of borrowing capacity and strengthens the position with sellers and can speed up the buying process.
Save for additional costs – beyond the deposit, ensure you have funds for additional costs like stamp duty, solicitor fees, property surveys, and moving expenses. Being prepared financially for these extras avoids last-minute financial strain.
Review your credit score – check your credit score and resolve any issues that could impact your mortgage approval. A good credit score can lead to better mortgage offers and interest rates, helping you manage long-term affordability.
Pick the right solicitor
At the outset, ask for your property lawyer’s capacity to complete all the required work before the deadline. Ask questions about workflows and any planned time off. If your property lawyer has planned holiday, ask about holiday cover arrangements.
Look for a property lawyer who communicates clearly, promptly, and is proactive about keeping you updated. Reviews and recommendations can offer insights into their communication style and reliability.
Transparent fees – request a detailed breakdown of fees and confirm if they operate on a fixed-fee basis. This will help avoid unexpected costs and enable accurate budgeting.
Get in touch
If you’re planning to buy or sell a property, acting quickly is crucial to avoid the impact of April’s stamp duty changes. For expert guidance and a smooth transaction, get in touch with our team at arch.law today. With our proven expertise, we’ll help you navigate the process efficiently and ensure you’re prepared for the changes ahead. Contact us now to get started.
