Keys to completing before Stamp Duty rises

With the April 2025 changes to Stamp Duty Land Tax (SDLT) fast approaching, buyers must act now to ensure they benefit from the current rates and avoid potential delays in their property transactions.  Whether you are a first-time buyer, investor, or moving up the property ladder, preparation is key to completing your purchase before the changes take effect. 

When the SDLT thresholds change on 1st April 2025, buyers will start paying the tax on any property over £125,000 (currently £250,000).  The average purchase price for North Yorkshire (according to Plumplot) as at November 2024 was £273,000.  This means you will pay £3,650 in SDLT if you complete on or after 1st April 2025, as opposed to £1,150 if you complete on or before 31st March.  That’s a substantial £2,500 increase.   

First-time buyers will have to pay SDLT on homes worth more than £300,000 once the changes come into effect, whereas completing the purchase of their first home by 31st March this year will mean they can buy for up to £425,000 without paying any SDLT.   Be careful here though; the SDLT exemption for first time buyers does have a cap; currently, if you are buying a property for more than £625,000 you can’t benefit from the exemption.  That figure reduces to £500,000 on 1st April 2025.   

It’s clear that the majority of homebuyers will benefit from completing their purchase before 1st April 2025.  Here's a step-by-step guide to help you navigate this critical time.  

Step 1 - Have your finances in Order 

Secure a mortgage agreement in principle (AIP) Having a mortgage in principle will show sellers you are ready to move quickly.  It’s not a binding agreement but will be helpful in a competitive market.  An estate agent will want to see this, along with proof that you have the deposit funds available, before they will accept your offer and mark the property ‘sold subject to contract’.  

Ensure your deposit is ready.  If you’re getting help from family, or have to realise investments, then understand the legal requirements so that the source (where the money comes from) can be traced.  Your conveyancer has a lot of strict laws to comply with in respect of anti-money-laundering regulations.  This means you’ll be asked for paperwork to show where your funds have come from, and if you’re lucky enough to have a gifted deposit from a family member, checks will need to be carried out on that relative and their source of funds before the matter can progress.  

Collate the relevant documents for your solicitors and other professional advisers to avoid any last-minute panics when you’re ready to start moving money.  Conveyancers don’t have a choice with these checks on your deposit funds so it’s important to have as much documentation ready as possible, as soon as you’ve made your offer.   

Step 2 – Instruct Key Professionals Early 

Delays often occur because buyers wait too long to assemble their team.  You’ll need: 

A conveyancer – you can choose a Licensed Conveyancer, a Legal Executive or a Solicitor, but ensure whoever you go with has capacity for a swift turnaround. Just as you need an estate agent who can communicate, you need a conveyancer who can do the same. Look for referrals from friends and relatives, but also check they specialise in conveyancing or property law.  

Those approved by the Law Society’s Conveyancing Quality Scheme (CQS) will be skilled in residential sales and purchases.  They should also be able to receive digital documents and handle your progress online to bypass any postal delays. 

A surveyor – check the surveyors’ availability to attend your chosen property without delay.   

A mortgage broker – They can help expedite your mortgage application and most will be able to look at a spectrum of lenders rather than just one bank or building society.  

Step 3 – Push the Process Forward 

Respond quickly to request for documents from your conveyancer or mortgage lender 

Get searches done early - speak with your conveyancer about ordering searches as soon as possible.  They will tell you if there are any additional issues to look at depending on the location of your property (flooding or mining risks for example), and the search results will reveal any potential problems with the property such as planning proposals or enforcement action,  flood risks or public pipes and sewers running close to the house (potentially hindering plans for extending).  The sooner you have this information, the better.  Some local authorities are still taking upwards of three to four weeks to return searches so don’t get caught out.  

Book a survey as soon as you can.  It can identify issues that may require negotiation on the price with the seller.  English property law means that you take the property in the condition it stands in on the day you exchange contracts; it’s therefore important you become aware of any potential issues which may need to be budgeted for, before you are legally committed to the purchase.  A survey will give you the best chance of uncovering problems with the structure of the house.