Great news for first-time buyers
The announcements in the 2017 Autumn Budget were designed to help first-time buyers by abolishing Stamp Duty fees for properties under £300,000. But if your property is worth between £300,000 and £500,000, you'll pay 5% Stamp Duty on this segment of the purchase price.
For example, if the property is worth £350,000 the buyer will pay 5% (£2,500) on £50,000.00. If a first-time buyer’s purchase price is over £500,000, there will be no discount on Stamp Duty Land Tax.
Stamp Duty Land Tax Calculator
Find out how much Stamp Duty Land Tax you'll need to pay with our free calculator.
The average price of a property in London
(Data taken from UK House Price Index)https://www.gov.uk/government/news/uk-house-price-index-for-november-2017)
|London Local Authorities||Average property price (November 2017)
||Rank cheapest to dearest|
|Barking and Dagenham||£289,992||30|
|Kingston upon Thames||£486,707||15|
|Richmond upon Thames||£663,921||05|
|Hammersmith and Fulham||£739,997||03|
|Kensington And Chelsea||£1,258,948||01|
In the table above, most of the cheapest areas are currently in the East of London.
If you are living in Barking and Dagenham but work in the City of London, you would expect a commuting time of around 45 minutes each way (according to Google Maps).
Things to consider when buying a house in London
With the rising costs of living, it can be difficult to gain enough capital for the deposit. There are many options to help first-time buyers including shared ownership, help to buy and even new build properties. To get on the housing ladder, we recommend setting a budget and see what non-essential items you can cut back on. This little sacrifice can serve you well in the long term.
Sometimes it can be cheaper to relocate to another part of London or even moving on the outskirts. However, if moving to a new location requires a longer commute, it is essential to understand what you’re getting into. If your new property is one hour away from work, that’s 40 hours per month travelling back and forth.
The mortgage payments
Whether you’re sharing a property with a loved one or going solo, it is crucial that you can keep up with the mortgage payments. It is highly recommended that you speak with an independent financial advisor for some impartial advice.
Family and Friends
If you’re going to relocate to a different area, how far away are you going to be to your friends and family? How nice is the area your looking to move to? These are all important questions to ask yourself. Visit where you could be potentially living first. Spend some time in the local bars and restaurants. Find out where the local shops are. Find out as much as you can about the area.
Finally, getting the best price for your conveyancing
There are two types of homeowners in London. The first homeowner will pay a premium to attend meetings at their solicitor’s office.
The second homeowner uses a different top-quality conveyancing solicitor in London, but does the entire process conveniently over the phone and by email.
At Banner Jones, we offer a great conveyancing package where you don’t need to visit our offices. Therefore, saving you time and money.
We know how frustrating London traffic is, so why pay more to see your solicitor when the process can be done from the comfort of your home?
To find out how, call Banner Jones Solicitors today on
At what point in the process is it legally binding?
You can withdraw from a sale or purchase up until the point contracts have been exchanged. Any deposits paid after exchange of contract will then by non-refundable. After contracts are exchanged you are then responsible for the property you are buying and should arrange suitable insurance from this date.
How long are local searches valid for?
A local authority search completed for a house purchase is valid for 3 months.
How long does the conveyancing process take on average?
We usually say 4-6 weeks for an average sale or purchase. Queries and concerns can often come out of the local authority searches which need further investigation and sometimes this leads to re-approval from the Mortgage lender. This can add further time into the process.
What happens if we can’t produce certificates for work we’ve had done on the house we’re selling?
You can indemnify the work by taking out an insurance policy. This means that you can not be held liable for any future fault on the work that was done. We can arrange this for you
What is Stamp Duty and how much will I have to pay?
Stamp Duty is a tax levied by HM Government on a transfer of property. For residential property this tax is calculated at 1% for property values between £125,001 and £250,000, 3% for values between £250,001 and £500,000 and 4% for those of £500,001 and over. Duty may also be chargeable on any rental charge (leases only) - this affects both residential and commercial leases where different thresholds are applied.
What is the difference between Joint Tenants and Tenants in Common?
Tenants is Common is where two or more people are entitled to the proceeds of sale in distinct shares - on the death of one, his/her interest will not pass to the survivor(s) but will be part of his/her estate. Joint Tenants are on the other hand 50/50 Co-owners of land - when one of them dies, his/her rights of ownership pass to the survivor(s).