Belvoir Property Clinic - Stamp Duty Explained

Andrew Bailey, Belvoir’s Sales Director explains Stamp Duty and how it will affect you when you buy a new home.

If you have a question for our monthly Belvoir Property Clinic, please send to info@belvoirandover.com

What is Stamp Duty?

If you are buying a home or a piece of land in England which is costing more than £125,000 (or more than £40,000 for second homes), you will have to pay Stamp Duty Land Tax (SDLT) on your purchase. Stamp Duty is a tax paid by the buyer on the purchase price of a property, not on the amount borrowed via a mortgage.

How much is Stamp Duty?

If the property that you are buying is your main home, then the amount you pay is calculated using the following bands:

·         You pay nothing on the first £125,000 of the purchase price

·         2% between £125,001 and £250,000

·         5% between £250,001 and £925,000

·         10% between £925,001 and £1,500,000

·         12% above £1,500,000

This means that if your home costs £120,000, you pay no Stamp Duty.

If however your home costs £275,000, then you can calculate SDLT as follows:

0% payable on the first £125,000 = £0, 2% on the next £125,000 = £2,500, 5% on the final £25,000 = £1,250

Total SDLT = £3,750

Different rules may apply to leasehold properties, depending on the type of lease.

Stamp Duty on second homes

Buyers of additional residential properties, such as second homes and buy-to-let properties, are required to pay an extra 3% in Stamp Duty on top of current rate and this higher rate applies to properties bought for £40,000 or more.

This works out as: 3% payable on the first £125,000; 5% on the next £125,000; 8% between £250,001 and £925,000, 13% between £925,001 and £1,500,000 and 15% above £1,500,000

The additional tax is not payable if your second home is a caravan, mobile home or houseboat.

If you buy a new main residence but there’s a delay in selling your previous main residence, you will also have to pay the higher Stamp Duty rates as for a short time, you will own two properties. However, depending on the circumstances you may be able to request a refund.

Stamp Duty for first-time buyers

First-time buyers in England qualify for Stamp Duty relief and do not pay SDLT on purchases of up to £300,000. They will however pay 5% on properties that cost from £300,001 up to £500,000.

This means that if your first home costs £280,000, you pay no Stamp Duty.

If your home costs £325,000, then you pay nothing on the first £300,000, and 5% on the remaining £25,000

Total SDLT = £1,250

If your first home is over £500,000 then you do not qualify for Stamp Duty relief and you will be expected to pay the standard rate.

Joint ownership and Stamp Duty relief

If you are married and jointly buying a property, then you will both need to be eligible first-time buyers to get First Time Buyers Stamp Duty relief.

Unmarried people can still get a reduction in Stamp Duty but only if one person is named on the mortgage deed and that person is a first-time buyer.

You are generally classified as a first-time-buyer if you are purchasing your only or main residence and have never owned a freehold or have a leasehold interest in a residential property in the UK or abroad

How is Stamp Duty paid?

Your solicitor or conveyancer usually submits a SDLT return for you within 30 days of the completion of the house purchase.

You should expect to pay SDLT on all property purchases, including those that don’t require a mortgage. So when buying a home, you really do need to consider whether you are able to afford the tax on top of all the other costs involved. There are various online calculators which can work out how much SDLT you will need to pay and lots more information is available on www.gov.uk. Alternatively, pop into the Belvoir office in Bridge Street, Andover and one of our team will help you.

Belvoir acquires Crown Lettings

Belvoir is delighted to announce the acquisition of Crown Residential Lettings in early July. All the Crown employees are now located in Belvoir’s Bridge Street offices and will continue to offer an exceptional service to landlords and tenants alike.

Belvoir now has the largest lettings team in the company’s 20 year history. The department has seen some restructuring with each individual member of the team now focusing exclusively on their particular area of expertise. With these lettings specialists delivering first class customer service, Belvoir continues to be the favourite lettings agent amongst Andover landlords* 

Vicky Bowman, Belvoir’s Lettings Manager said “We now manage a significant portfolio of Andover rental properties and we were thrilled to see that according to figures provided by Rightmove, in 2018 we have listed more available properties in Andover than any other agent. This means that we can offer prospective tenants a much greater choice** and this in turn is good news for our landlords.”      

For more information on Belvoir’s lettings service or available rental properties, please call 01264 366611 or email lettings@belvoirandover.com

*Rightmove stats for 2018 – Most New Instructions
**Rightmove stats for 2018 – Available Stock      

Belvoir Property Clinic launches

We have introduced our monthly Property Clinic, which promises to answer many of the questions we get asked in the office.This month we look at tax changes for Landlords.

If you have a question for our monthly Belvoir Property Clinic, please send to info@belvoirandover.com

Q Can you explain the tax changes that have been introduced for buy-to-let landlords as I am about to file my tax return

A This is a question we have been asked a lot at Belvoir, and it’s not an altogether simple one to answer.

The tax changes only apply to individual landlords who let property in the UK, those who let in a partnership or Trustees of a trust directly holding UK residential property. The new tax rules won’t apply to companies or landlords of furnished holiday lets.

In short, the main change being made under the new tax rules, is that landlords will no longer be able to fully claim tax relief on their mortgage interest payments and related finance costs.

Previously, landlords have been able to deduct a number of allowable expenses along with mortgage and other finance expenses from their rental income and just pay tax on the difference. Now however, tax relief on finance costs will be restricted to the basic rate of Income Tax with the restrictions being phased in gradually from 6 April 2017 until fully in place from 6 April 2020.

You’ll still be able to deduct some of your finance costs when you work out your taxable property profits during the transitional period. These deductions will be gradually withdrawn and replaced with a basic rate relief tax reduction.

Tax year	Percentage of finance costs deductible from rental income	Percentage of basic rate tax reduction
2017/18	75%	25%
2018/19	50%	50%
2019/20	25%	75%
2020/21	0%	100%

We would advise you to take some professional advice regarding how this will affect you based on your particular personal circumstances. There is also more information on the full impact of the changes and case studies published by HMRC which can be accessed on www.gov.uk

No Deposit? No problem!

Belvoir is now offering a Nil Deposit Scheme for new tenants

Here at Belvoir, we know that it can be a struggle to raise a large deposit to put down on a rented home, so our new Nil Deposit Scheme offers an alternative option which will allow you to move quickly and easily into your chosen new home. 

Rather than paying the usual six week’s rental as a deposit, you can now choose to pay a non-refundable fixed fee of just one week’s rent plus VAT*

At the end of the tenancy, the property will be inspected in the usual way.

No need to save for months for that large deposit – yet another reason to Be with Belvoir!

How does it work? Pop in and see one of our Lettings team to find out if you qualify for Nil Deposit and to understand the full terms and conditions of the Scheme, or call them on 01264 366611


*Terms and Conditions apply

Introducing Vicky Bowman

We are delighted to announce that Vicky Bowman has joined Belvoir as Lettings Manager. Vicky will head up our very successful lettings team and she brings a wealth of experience to the role; having been a Lettings Manager in Andover for over 14 years.

Vicky said 'I am delighted to join such a busy and well-regarded lettings agent and I am looking forward to meeting and working with the many landlords that rely on Belvoir to manage their properties'

Be Careful of Faceless 'Call Centre' Estate Agents

Be Careful of faceless 'Call Centre' Estate Agents

Over recent months there seems to have been a huge uprising in the number of online-only estate agents. Each jostles for attention within an increasingly crowded market with promises of ‘big’ savings for customers. These companies are usually operating from a back bedroom somewhere or a call centre on an anonymous and remote business park somewhere. But are these ‘Call Centre’ style estate agents really saving consumers money? In this blog we take a look at this key question and explain why, when you’re dealing with a faceless ‘Call Centre’ estate agency, it pays to be careful.

Let's begin with the main reason why most sellers consider online estate agents; to save money on the fee

A totally understandable consideration and we all want a 'bit of a deal' and have no appetite to over spend! However, we must consider the bigger picture here. The cheapest fee is often the most expensive. Why? Paying a low fee may, at first, seem attractive but saving a thousand pounds or two, pales into insignificance, if an agent fails to get the best price and sells your home for five, ten or twenty thousand pounds less because they haven’t reached all potential buyers. This is where an established and town centre estate agent has a bigger tool box. Time and time again we achieve a higher sale price than the online cyber agents do. 

Paying a fee upfront irrespective of result is hardly an incentive for great service or performance either. Once you've paid the incentive to work hard disappears. Also, you will pay even if your property doesn't sell!

It's a bit of a cliché but three of the most important things to consider when buying a property is: Location, location, location

They say that selling a property is often more about location than it may be about the property itself. Pick a property in the 'right' area and they will enjoy a higher chance of the value increasing over time and it will always be desirable. Parents will research schools, commuters will research infrastructure and everyone will consider local amenities and which area boasts the best reputation.

Whether you’re buying or selling, it seriously pays to be talking with an estate agent who knows the local area (and its pros and cons) inside out – and as all too many consumers find, online-only estate agents simply don’t cut the mustard as they are often remote, cover an enormous territory and simply do not have the “on the ground” knowledge and experience.

Think that the shop window is an old-school marketing tool? Think again.

The well-placed estate agency shop window upon the busy Bridge Street is an essential marketing tool that many sellers overlook. After all the majority of savvy buyers will be researching any potential area that they’re considering moving to, and key to this is checking out the local high street agents.

An estate agents office is another 24-7 advertising hoarding for your property alongside the undoubted benefits of the internet. Why not have both? Belvoir are effectively an online agent with huge internet coverage but also have a well situated “Town Centre“ office providing additional and relevant local coverage.

Faceless estate agents are exactly that – faceless

Lacking face to face contact can be a real negative. No one-to-one meetings where your circumstances can be discussed and actions agreed and actioned. There are many situations where it is much easier to resolve issues and make progress when sat across a table with a cup of tea! Of course, the benefits of face to face contact also extends to the potential pool of buyers that sellers may be missing if they opt for an online estate agency.

A sometimes sorry reputation that proceeds them

Whilst there has been many an online-only estate agency cashing in on what seems to be the latest trend of trading via internet and phone alone, many such companies already have a (pretty poor) reputation. Check out their social media presence and reviews. You can’t? No, often they have removed themselves from the potential firing line as feedback and comment on their service is less than favourable. Nobody is perfect but at Belvoir in Andover, we believe in resolving any aspects that need addressing rather than just hiding them in the cloud!

And finally... At Belvoir Andover, we are as good as our word

We have a solid reputation that goes before us. We know our local and national markets inside out and back to front – from school’s latest Ofsted report to the average journey times from and to local towns and cities. We also appreciate the need for superstar customer service that is far from faceless.

Our teams are exactly that, teams. You are not reliant on a single person but benefit from our teams across our network of offices. Yes, you will have one main point of contact but also a number of other staff working diligently on your behalf.

So if you want to deal with tried, tested and trusted professionals who are anything but faceless, then talk to us today. After all, why would you entrust the sale of your bricks and mortar property to a company who exists only within the online world?

Text adapted and expanded from an article by fellow high street agent Mr D Sansome

Belvoir Andover is an established estate agent in Andover town centre who have been property experts since 1997. They occupy a prominent position on Bridge Street (the only road to pass through the town centre) in a recently refurbished listed property that has been an estate agents for the past 60 years. If you would like 21st century efficient and proactive property marketing, please contact us to arrange a free and without obligation valuation. Why not pop in for a cup of tea? Belvoir Andover 01264 366611

We sent our Little Agents round to sell one of our houses!

Find our what happened when we sent our Little Agents round to sell one of our houses

Belvoir Andover are the leading estate agent in the Andover, Whitchurch, Ludgershall areas of Hampshire and Wiltshire.

If you are looking to instruct an agent with real personality, please call us today to see what makes us different from 'the rest' 01264 366611

Welcome to our newest Team Members

A big welcome to our three new starters Charlie, Chris and Lucy. They have recently joined the business due to continued success and growth in Sales and Lettings.

Charlie joins our busy lettings team as a Lettings Negotiator where she will assist the rest of the lettings team marketing landlords properties and letting them to fully referenced tenants and achieving the best possible return for our landlords. Charlie, whom is extremely professional, has already demonstrated her skills and salesmanship by successfully letting 9 properties in her first two weeks!!  

Chris joins us as Sales & Lettings Administrator. Part of Chris’ role is to sales chase our sold properties as he has a wealth of experience in the conveyancing sector having joined us from a local conveyancing firm. 'Sales progression' is an unsung ingredient of estate agency as this kicks in after a sale is agreed (Sold subject to contract) and is essential for getting a sale all the way through to completion. 

Lucy has joined our ever growing sales department as a Sales Negotiator. Lucy is a young and dynamic individual with heaps of enthusiasm and a natural motivated sales personality. Lucy will be assisting the rest of the team to market our vendors properties for sale, finding buyers and assisting our clients in deciding which offer to take. Within 2 weeks, Lucy has already successfully sold 5 properties!!

We wish Charlie, Chris and Lucy the very best and welcome them to our team of property professionals here at our Andover town centre office. 

Job Opportunity - Senior Sales Negotiator

Due to our continued expansion we are now looking for a Senior Sales Negotiator.

The successful candidate must have a positive attitude and structured approach to their work. It is preferred that the successful candidate will already have experience of the sales process within estate agency. A clean driving licence and good references are essential.

The Role:

• Market Appraisal/Vaulations
• Identify potential buyers and securing quality viewings
• Chat face to face with potential buyers to find out their requirements
• Carry out viewings
• Ability to negotiate a sale price and close a sale quickly
• Follow up viewings and secure offers where possible
• Although leads do come in daily via email and telephone, you will be required to generate additional leads
• Canvassing

Skills Required:

• Self-motivated, target driven, results orientated and customer service focused.
• Able to work well within a team
• Excellent organisational and time management skills
• Exceptional communication skills and the ability to negotiate.
• A good understanding of general computer systems is required
• Must have clean driving licence
• Outgoing, sociable & well presented
• Have a 'can-do' attitude

Working Hours: 
Mon - Fri: 9.00am - 6.00pm 
Saturday: 9.00am - 4.00pm (alternate)

Job Type: Full-time
Remuneration: £Negotiable


Belvoir are part of a national network of over 170 offices, each one owned and operated by local property professionals. The Andover office is consistently within the top 5 in the network and is considered one of the flagship offices. Belvoir are one of the highest regarded agents in the UK and have been awarded GOLD by The Sunday Times for the last 5 years. The company has built it's reputation and success on getting the job done whilst delivering award winning levels of customer service . Belvoir Andover have been in the town since 1997 and will be celebrating it's 20 Years with a total revamp of their Bridge Street offices.

So if you'd like to get into property and join the most regarded agent in the town, please send a copy of your CV to andrew.bailey@belvoirandover.com

Choose Belvoir To Buy Or Sell Your Property

Buying and selling property is notoriously stressful – but we will be there to help make the process as smooth as possible for you.

We understand the pressures involved in selling your property. We hope we will provide you with useful information to help answer some of those burning questions and ease some of your worries such as finding out how much your property is worth.

How do I choose the right agent?

Selling and buying property can be an expensive and time consuming activity which relies heavily on excellent communication, good management and experienced professionals to help it go smoothly. The vast majority of people simply do not have the time or resources that are needed to sell a property on their own, which is where an estate agent comes in.

• An estate agent’s primary role is to facilitate the sale of your property as well as providing regular guidance and support through the more complicated and stressful stages of the transaction.
• They are responsible for the correct appraisal of your property, taking into account any issues that are affecting the market at that time.
• The agent will also take care of the Energy Performance Certificate for your property.
• They will be responsible for how your property is presented to the market and how widely it is promoted, including online presentation.
• They are responsible for attracting and carefully qualifying the right buyers. There is nothing worse than having the wrong buyer for your property; it can delay the transaction for months and even time and money.

Choosing the right estate agent is crucial for the successful sale of your property. However, selecting an estate agent can be an intimidating task, especially with so many to choose from.

A selection of Belvoir offices are now offering a sales service which means we can help with all aspects of buying and selling property.

Belvoir operate to strict codes of conduct and are members of the Property Ombudsman (which offers a redress scheme in case of any disputes). Qualifications and training are essential for the development and success of an Estate Agent.

“A good estate agent should be well informed, intelligent and interested in the motivations and needs of its clients”

Advertising

Your home means so much to you. You’ve spent time and money on making it the place you enjoy returning to at the end of the day; the place where you entertain friends, or maybe raised your family. We totally understand this and it is these details we use when starting to build the marketing plan for your property. We’ll pick out the details that we know will engage and connect with potential buyers. It could be a beautiful original fireplace, maybe you have a fabulous garden, or a stunning view from your bedroom window. These are the things that we will notice and ensure we use to market your property.  

Over 80% of property searches start online now, so getting your home on our market-leading website is a priority. We’ll make sure it is seen on all the other major property websites too, like Rightmove and Zoopla.

Our photography and exceptional approach to writing your property description will bring your property to life. There’s nothing quite like a charming brochure, packed with stunning photographs and carefully written copy to motivate a buyer.

Rely on us to attract the right viewers for your home  

We pride ourselves on having a mixture of the very latest marketing practices that each bring out all the best points of your home.

• Sale particulars with good quality photography
• Online marketing nationally with Belvoir.co.uk, Zoopla, Rightmove, PrimeLocation etc as well as social media websites – everywhere the buyer is going to look
• Window displays in our prominent offices
• Dedicated Smart Phone App

If you are looking to buy or sell a property, come to the leading Andover Estate Agent for award winning customer service.

Tel: 01264 366611 Email: sales@belvoirandover.com

Tenants could lose their home if Labour win election

A million tenants could lose their rental properties as a result of Labour’s policies, predicts Belvoir 

Belvoir, one of the UK’s largest property management agencies, predicts that Labour’s pledge to introduce new anti-landlord rental policies could result in up to a million tenants losing their rental properties.

We are by no means a political business here at Belvoir, but when a blatant policy decision is set to effect the lettings industry is such a drastic way, we feel compelled to communicate it to our clients, tenants & friends to ensure they understand the implications of their voting actions. 

“I am shocked at Ed Miliband’s proposals and his decision to ignore industry experts who have issued dire warnings about the unprecedented suffering that his party’s policies are likely to cause to tenants,” says Phil Pinkney, Belvoir Andover Director.
 

“Under a Labour Government, landlords will be forced to commit to three-year tenancies and banned from raising rents above inflation. You don’t have to be a mathematician or property expert to work out how deeply flawed these policies are.
 

“There are currently eleven million people renting property in the UK, which amounts to about 20% of the population and includes 1.5 million families with children. There are around four million rental properties available and if just 10-15% of landlords decide to withdraw from the rental market because they are uncomfortable with Labour’s proposals and feel unable to manage their risks – particularly when mortgage rates rise - these homes will no longer be available. 

“I would like to know where Ed Miliband suggests these tenants should live? These tenants will either become homeless or face the appalling consequences of having to move in with family and friends on a long-term basis. 

“Looking at housing proposals for new builds from all the main parties, the most that any party has pledged is 300,000 properties in the next five years and clearly this figure will not even begin to satisfy current demand, which is the reason that we’re facing a housing shortage. 

“We should not forget that it was the Labour Government’s incompetence that contributed to the financial crisis of 2007 and 2008, which resulted in a credit crunch that has left millions of people unable to obtain mortgages or save for a deposit to buy their own home. It is therefore very shortsighted and totally irresponsible of Labour to introduce policies that will drastically reduce the number of available rental properties. 

“Landlords are very tired of being made to look like criminals who are constantly looking to rip off tenants and provide low quality housing. In our experience, 99.9% of landlords are decent people that provide decent housing for tenants on a long-term basis. Belvoir’s rental index confirms that in most parts of the country there has not been the major rental increases that Ed Miliband speaks of. However, if we look back over the past five to ten years and apply Labour’s proposed inflation rule for rental increases to many parts of the UK then tenants would indeed be paying much higher rents than they are today.  

“Labour’s proposals are full of loopholes and have clearly not been thought through, but merely put forward as a way to attract votes. One thing is certain - Labour’s policies will not raise standards or increase tenant security. They are likely to cause a housing crisis that will result in millions of people left with nowhere to call home.”

If you too feel strongly about the above, make sure you vote with your feet and get to a polling station near you and vote against a Labour government.