Recent government changes introduced a Stamp Duty holiday which means that no Stamp Duty Land Tax (SDLT) will become payable for many transactions and will be significantly reduced on others. This expires on 3oth June 2021.
From 1st July 2021 SDLT will become payable unless the current regime is extended by the Government.
Due to the fact that all property transactions are often reliant on a number of different parties and need many different events to fall into place within a certain timeframe, it is simply not possible for us to be able to guarantee that completion will occur by a certain, preferred date.
At present (largely due to the Pandemic), property transactions are taking much longer than usual. Delays are caused by many factors; busy lenders, mortgage offers being received, valuations and surveys, local authorities, the high demand and pressures faced by all conveyancers, sudden changes in client circumstances, backlogs at the Land and Probate Registries, and delays in the divorce courts, etc.
The current national average transaction time has now increased to 18-20 weeks (nearly 5 months). This is subject to change due to the ongoing changeable Government guidelines including external and other factors beyond our control. Whilst we will endeavour to complete your transaction as quickly as possible, we are unable to guarantee the time your transaction will take.
This means that if your purchase does not complete on or before 30th September 2021, you will have to revert to and pay SDLT under the rules that were in place prior to 8th July 2020.
If you are a seller, and your buyer experiences any additional SDLT costs then this is a matter for your buyer only and we will not be held liable for any increased sums that may have to be paid out by the buyer.
Experience suggests that there is rarely such a thing as a simple transaction and as we get nearer the 30th September deadline, it is inevitable that stress and frustration will become greater for those involved in the buying and selling of property.
We are advising all our property clients and potential clients to be aware of this issue and to be realistic. Plan for the worst by making sure that you have funds available to pay any additional SDLT that may become payable. You may also be faced with a situation where lenders affordability criteria changes closer to 30th September. For example lenders will need to take into account the funds required for additional SDLT payments post 3oth September 2021. This may result in lenders withdrawing mortgage offers previously given. Please discuss such concerns directly with your lender where applicable.
The important factor for us is to ensure that you are fully informed of the risks and are still happy to proceed in full knowledge that completion by 3oth September 2021 (and the financial benefit this may provide) is not a guarantee. Should you have any concerns or queries, please let us know.
We also suggest you question any promises made by other legal professionals, or financial advisers, mortgage brokers, estate agents, new build plot sales etc offering to guarantee a transaction time or to charge greater fees to get it through in time. We have chosen to be transparent with our clients and offer this honest advice at the outset.
By continuing your instruction with us, you acknowledge that Franklins Solicitors LLP make no guarantees that your matter will be completed by 3oth September 2021. In that event, Franklins Solicitors LLP shall not be held responsible for any additional SDLT or expenses that may become payable, or such other financial implications that may arise if your transaction does not complete by 3oth September 2021.
We strongly suggest that you visit https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro to calculate any SDLT payable should your matter complete after 3oth September 2021.
** IMPORTANT NOTICE FROM FRANKLINS SOLICITORS LLP **
We are presently receiving a significantly high number of emails and telephone calls due to the impact of the current pandemic and the effect this has had within the legal sector. We kindly ask that you do not chase responses to emails unless you have not heard from us after 3 working days as we are finding that multiple chasing emails are compounding the issue and causing further delays for our clients. We also ask that, unless extremely urgent, you refrain from telephoning us to discuss the email you have sent as this will allow us to reply to you sooner.
If your transaction falls within Conveyancing/Property Services, those emails concerning matters which are due to complete shortly are being prioritised as are transactions that are approaching exchange of contracts and which are deemed proceedable.
Please do bear with us; you are important to us and we wish to reassure you that we understand how the current climate presents both uncertainty and worry for us all. We very much appreciate your patience and thank you for your support.
Thank you for your understanding.
