The doing away of stamp duty for first-time buyers, Brexit negotiations, leasehold sales changes and the anticipated rise in interest rates are issues that are creating a lot of anxiety and apprehension in the minds of home sellers as well as buyers in many parts of the UK such as Haringey and Tower Hamlets. Consequently, this has given rise to a lot of complications and complexities to the legal transactions with regards to property.
Let us discuss some of the key issues that are perplexing to a lot of legal experts as well as lay people who are conducting property searches.
Stamp Duty Land Tax
As per the new Stamp Duty Land Tax, first-time buyers do not have to pay taxes on properties worth up to 3, 00,000 pounds. Unfortunately, from a bureaucratic stand-point, residential property transactions now come at 4 different rates – first-time buyers, limited company purchases, buy-to-lets or second homes and home movers.
Interest rates
In November 2017, the base rate for the Bank of England rose by 0.25 per cent to 0.5 per cent. This was the first rate rise in 10 years. In 2018, many economists expect more rises. Given the unavoidable effect, this will have on mortgage interest rates, many home movers and buyers will be adversely affected.
Mining risks
Abandoned mine shafts are a well-known issue in many parts of Wales and England. They cause sinkholes which in turn lead to irreparable damage to property. As a result, lenders refuse to negotiate mortgages for properties that are near mine shafts. After all, when carrying out a thorough investigation of a property, Conveyancers have a duty towards their clients.
Streamlining the process
The Conveyancing Association has made proposals to speed up the way property is bought and sold. These include steps to reduce money laundering and fraud. If and when implemented, they could herald further changes to an already complex process.
