By now the dust has settled and everyone is evaluating the effects of the increase in Stamp Duty Land Tax (SDLT).

From 1st April 2016 there will be a new 3% surcharge on top of the existing SDLT, for any residential property purchased as a second home or a buy-to-let investment.
What impact will this have on you if you are currently looking to buy or sell?

1 If you considering a sale it is possible that the value may drop after the April 2016 deadline as historically approximately 30% of all London properties are bought as buy to lets or second homes.

2 You may have to pay the 3% surcharge if you wait until after 1st April 2016 to buy an investment property or a second home. This 3% is incremental and runs alongside the current bands of SDLT as listed below.

Purchase Price Principle Residence 2nd Home or Investment
£ 0 to £ 125,000 0% 3% *
£ 125,000 to £ 250,000 2% 5%
£ 250,000 to £ 925,000 5% 8%
£ 925,000 to £ 1,500,000 10% 13%
£ 1,500,000 or more 12% 15%
*NB 2nd homes or investment property purchased for £40,000 or less will attract SDLT at 0%

You may be aware that on the day of the statement, Clive Bull on LBC requested my comment as a property expert, in relation to the possible consequences and you can listen to the interview by clicking the link:- https://www.youtube.com/watch?v=cL3UzJ924Tc&feature=youtu.be

Heathgate is a well-known, reputable and established estate agent in Hampstead, so if you would like assistance in selling your property, buying a new one or just require advice before the new tax comes into force, please do not hesitate to come back to either myself or Doug Morris, who will be delighted to help you.