Paul Alexander Mortgage Consultants featured on BBC News

Paul Alexander Mortgage Consultants featured on BBC News

We were recently featured on the BBC News just a few hours before the new Stamp Duty Change came into effect. Finance Director of Orchards of London Ltd and Managing Director of Paul Alexander Mortgage Consultants Ltd, David Diggins, was interviewed by Business Editor, Kamal Ahmed, about the changes and effects of the property market.

Stamp Duty is payable if you buy a property over a certain price. This is charged on all purchases of houses, flats and other land and buildings.

From 4 December 2014 the SDLT (Stamp Duty Land Tax) rate depends on:

  • The purchase price of the property
  • Whether the property is residential
  • SDLT may also be due if you lease a property.

SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band.

Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.

1. Residential Properties

Purchase price of property, and the rate of SDLT (percentage or portion of purchase price):

  • £0 - £125,000 - 0%
  • £125,001 - £250,000 - 2%
  • £250,001 - £925,000 - 5%
  • £925,001 - £1.5 million - 10%
  • Over £1.5 million - 12%

This calculator can be used for residential property or non-residential property.

However, there are some exceptions. For example, you pay SDLT based on the new rates and bands where the property is used for:

2. Residential leases

  • If your residential lease is for more than £125,000, you’ll pay 1% SDLT on the amount above the£125,000 threshold.

3. Non-residential and mixed-use properties

Purchase price/lease premium or transfer value rate of SDLT

  • Up to £150,000 - annual rent is less than £1,000 0%
  • Up to £150,000 - annual rent is £1,000 or more 1%
  • Over £150,000 to £250,000 1%
  • Over £250,000 to £500,000 3%
  • Over £500,000 4%

To review your finance and find the best solution for your purchase contact us for an impartial advice.

Orchards of London

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