Jump to content
House Price Crash Forum

Stamp duty holiday extension


Recommended Posts

0
HOLA441

Forced to buy a house at current stupid prices for family reasons. Expecting to exchange in the next week or two and complete by 30th June (no chain, cash buy, etc.). Found out yesterday that the sellers have booked a month long holiday and won't be back until mid July! 

Link to comment
Share on other sites

  • Replies 98
  • Created
  • Last Reply

Top Posters In This Topic

1
HOLA442
18 minutes ago, hurlerontheditch said:

They're still (either consciously or not) hoping/expecting the holiday to be extended again.

This is why i'm not touching anything until October. Not only do people need to have no chance of making the stamp duty holiday, but any hope of it being extended needs to be utterly destroyed. 

Link to comment
Share on other sites

2
HOLA443
30 minutes ago, normdiploom said:

Forced to buy a house at current stupid prices for family reasons. Expecting to exchange in the next week or two and complete by 30th June (no chain, cash buy, etc.). Found out yesterday that the sellers have booked a month long holiday and won't be back until mid July! 

Just drop price by the SD amount and blame seller, innit?

Link to comment
Share on other sites

3
HOLA444
On 13/05/2021 at 10:21, Marshall211 said:

While this is part of usual moaning seen typically before a looming deadline, I think this time the problem is more fundamental. Given the significant gap between supply and demand I do not think any refusal to extend stamp duty holiday will impact prices. 

The market is crazy where I am with very few new listings and one that does come up, goes into bidding wars. I have decided to stay put until this madness stops. I do expect the prices to continue rising with the gap between supply and demand. FOMO is a big driver currently. 

 

yes this is what I see - people are paying way over asking price far in excess of what the stamp duty saving is. So its not just people saving the SD and then upping the price. There is just a lot of people with far too much money available bidding up prices. Many sold in London and are moving to the regions where it is cheaper (but for how long if Londoners keep coming I don't know). This is why a lot of locals can be quite abusive to people coming from down south as they see their children's chance of ownership slipping away.

Link to comment
Share on other sites

4
HOLA445
50 minutes ago, sammersmith said:

They're still (either consciously or not) hoping/expecting the holiday to be extended again.

This is why i'm not touching anything until October. Not only do people need to have no chance of making the stamp duty holiday, but any hope of it being extended needs to be utterly destroyed. 

Lobbying already underway:
https://propertyindustryeye.com/stamp-duty-extension-petition-passes-10000-mark-2/

Link to comment
Share on other sites

5
HOLA446
4 minutes ago, rantnrave said:

haha, oh yeah i forgot about this one. Lets fundamentally change stamp duty so that buyers can claw back a few more weeks of not having to pay it. I'll be amazed if this gets anything over the standard 'government is committed to helping hard working families, but no' response.

I think they actually regret this stamp duty boom now. There would have been a load of crying if they stuck with the original deadline, so it seemed they had no choice but to extend. They did extend generously and I can't see any reasonable person can cry now.  

Link to comment
Share on other sites

6
HOLA447
2 hours ago, sammersmith said:

This is why i'm not touching anything until October. Not only do people need to have no chance of making the stamp duty holiday, but any hope of it being extended needs to be utterly destroyed. 

Good point. People need to stop believing in the Stamp Duty fairy.

There's an outside chance I might be able to make an offer later this year too. Surprisingly, my broker told me lenders weren't answering calls until fairly recently. Shouldn't he have been rushed off his feet with lenders shovelling cash out of the door in this "boom"? It would appear not. 

Edited by Voice of Doom
Typo, naturally.
Link to comment
Share on other sites

  • 2 weeks later...
7
HOLA448
8
HOLA449
9 minutes ago, hurlerontheditch said:

I think lots of people take information at face value i.e. "stamp duty cut is good for you"

This leads them into a strange world where they are actually wishing something that is bad for them to happen.

Link to comment
Share on other sites

9
HOLA4410
8 minutes ago, hurlerontheditch said:

There's (virtually) no pressure to extend it this time. The original extension was also announced 28 days before the holiday was due to expire, and with weeks of speculation and hints beforehand. We're past that point already if they hoped to extend past 30 June for sales under £500K

The only thing i could feasibly see happening is to extend / make permanent the £250K exemption when this is due to expire in September, but if there's no pressure to do this why would they?  

Link to comment
Share on other sites

10
HOLA4411

I've noticed an increasing number of people on Mumsnet / MSE who have started talking about the SD cut off for exchange being the 15th June. 

Example

Quote

Our solicitor has told us that if we haven’t exchanged by the 15th we won’t meet the end of June as all the associated network of lenders etc are saying average turnaround is 15 working days and the law society are warning solicitors not to over promise as it’s just so busy. 

Does this mean next Tuesday could be make or break for many? 

June 15th is actually 11 working days (15 whole days) until June 30th so we may already be past that date if the lenders are insisting on 15 working days. 

Edited by sammersmith
Link to comment
Share on other sites

11
HOLA4412
1 hour ago, sammersmith said:

I've noticed an increasing number of people on Mumsnet / MSE who have started talking about the SD cut off for exchange being the 15th June. 

Example

Does this mean next Tuesday could be make or break for many? 

June 15th is actually 11 working days (15 whole days) until June 30th so we may already be past that date if the lenders are insisting on 15 working days. 

Has anyone told them on the 16th of June they should offer 10-20% less to cover the Stamp Duty, costs and the reduction in borrowing not being able to lever up that 3% saving ?

 

Go on, I dare you....

Link to comment
Share on other sites

12
HOLA4413
13
HOLA4414
1 hour ago, TheCountOfNowhere said:

Has anyone told them on the 16th of June they should offer 10-20% less to cover the Stamp Duty, costs and the reduction in borrowing not being able to lever up that 3% saving ?

 

Go on, I dare you....

🤣🤣🤣

Link to comment
Share on other sites

14
HOLA4415
Quote

Government closes door on stamp duty change

The government has rejected a call to amend the current stamp duty holiday, which would have seen the tax benefit triggered upon exchange of contracts, rather than completion.

More than 13,500 people, have signed the petition, which was started last month by Chris Holland, who is looking to take advantage of the existing stamp duty holiday.

Holland said: “People are finding themselves becoming trapped in a scenario whereby house prices are much higher, and at the same time they will now miss out on the stamp duty holiday. People are being financially punished from both sides, this from a policy that was designed to do the exact opposite

 

 

 

Trapped my ar*e

 

https://propertyindustryeye.com/government-closes-door-on-stamp-duty-change/

Link to comment
Share on other sites

15
HOLA4416
On 6/10/2021 at 3:20 PM, TheCountOfNowhere said:

Has anyone told them on the 16th of June they should offer 10-20% less to cover the Stamp Duty, costs and the reduction in borrowing not being able to lever up that 3% saving ?

 

Go on, I dare you....

Can you borrow to cover the stamp duty? Never used to be the case, the mortgage was only ever against the property.

Link to comment
Share on other sites

16
HOLA4417
17
HOLA4418
1 minute ago, Freki said:

No you can't, so stamp duty exemptions increases your leverage

Thought not. Leverage isn’t really a problem. Low repayments spread over 25 years, manageable. An extra 5-10k from your ‘savings’ ouch!!!

Unlike many I don’t drive around in a flashy new car cos I know I can’t afford one, but then I always pay cash for my cars, always have done, always will.

Link to comment
Share on other sites

18
HOLA4419
11 hours ago, hurlerontheditch said:

The government has rejected a call to amend the current stamp duty holiday, which would have seen the tax benefit triggered upon exchange of contracts, rather than completion.

More than 13,500 people, have signed the petition, which was started last month by Chris Holland, who is looking to take advantage of the existing stamp duty holiday.

Holland said: “People are finding themselves becoming trapped in a scenario whereby house prices are much higher, and at the same time they will now miss out on the stamp duty holiday. People are being financially punished from both sides, this from a policy that was designed to do the exact opposite

 

 

 

Trapped my ar*e

 

https://propertyindustryeye.com/government-closes-door-on-stamp-duty-change/

Okay I'll bite. Whats your definition of trapped if not between two opposing tangents. 

Link to comment
Share on other sites

19
HOLA4420
On 11/06/2021 at 21:00, MarkD said:

Can you borrow to cover the stamp duty? Never used to be the case, the mortgage was only ever against the property.

https://www.onlinemortgageadvisor.co.uk/mortgage-application/does-your-mortgage-cover-stamp-duty/

 

"A mortgage lender will not loan additional funds to cover the cost of Stamp Duty so before purchasing a property you either need to have sufficient equity or money set aside specifically to cover moving costs including removal fees, solicitors fees and of course Stamp Duty."

 

All those £3-15K stamp duty funds have been levered up by finance company owned EAs and turned into £10-75K more debt against even more extreme house prices.

 

The charlatans in charge know what they are doing

Edited by TheCountOfNowhere
Link to comment
Share on other sites

20
HOLA4421

Looking forward to seeing if patience actually is a virtue.

Link to comment
Share on other sites

21
HOLA4422
22
HOLA4423
2 hours ago, TheCountOfNowhere said:

(...)

All those £3-15K stamp duty funds have been levered up by finance company owned EAs and turned into £10-75K more debt against even more extreme house prices.

The charlatans in charge know what they are doing

What, pump and dump?

Link to comment
Share on other sites

23
HOLA4424
24
HOLA4425
3 hours ago, TheCountOfNowhere said:

https://www.onlinemortgageadvisor.co.uk/mortgage-application/does-your-mortgage-cover-stamp-duty/

"A mortgage lender will not loan additional funds to cover the cost of Stamp Duty so before purchasing a property you either need to have sufficient equity or money set aside specifically to cover moving costs including removal fees, solicitors fees and of course Stamp Duty."

 

All those £3-15K stamp duty funds have been levered up by finance company owned EAs and turned into £10-75K more debt against even more extreme house prices.

As SD comes back, what wheeze is next to plug this gap?

Without a prop, any buyer in 2021 now absorbs an immediate equity loss, subsequent sales become lower in nominal terms. Anyone's guess if that starts a rush for the exit.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information