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Tag: First-time Buyer

Stamp Duty on second homes: everything you need to know

Posted on by Sophie Winter

Are you considering purchasing a second home? Recent announcements from Chancellor Rachel Reeves in the Autumn Budget have significant implications for buyers looking to invest in second properties or buy-to-let ventures. With changes to the Stamp Duty rates and tax thresholds set to take effect in 2024 and 2025, it’s crucial for prospective buyers to understand these updates and plan accordingly. Here’s a comprehensive overview of what to expect and how to navigate these changes effectively:

Key Stamp Duty changes for second homes

Starting 31 October 2024, the Stamp Duty surcharge for second homes and buy-to-let properties will increase. While buyers of primary residences will not be affected, those acquiring an additional property will face higher tax obligations. Here’s how it breaks down:

New Surcharge: Effective from 31 October 2024, this surcharge will rise to 5%, resulting in additional costs for second home buyers.

Previous Surcharge: Buyers of second properties currently pay an additional 3% on top of standard Stamp Duty rates.

Important timing considerations

If you plan to buy a property intending to make it your main residence, the timing of both your purchase and sale is crucial. Even if your new property is meant to be your primary home, you will incur the 5% surcharge unless you complete the sale of your existing home before finalizing the purchase of the new one. If your previous home sells within 36 months, you can apply for a refund of the surcharge.

This detail highlights the importance of coordinating sale and purchase timelines closely when transitioning to a new primary residence.

Upcoming changes to Stamp Duty thresholds in Spring 2025

It’s also important to be aware of the impending changes to Stamp Duty thresholds in Spring 2025. The current thresholds, which were adjusted in 2022 to ease the tax burden on homebuyers, will revert to pre-2022 levels as follows:

  • Current Stamp Duty Thresholds (until April 1, 2025):
    • Up to £125,000: 0%
    • £125,001 to £250,000: 0%
    • £250,001 to £925,000: 5%
    • £925,001 to £1.5 million: 10%
    • Above £1.5 million: 12%

  • New Thresholds (effective April 1, 2025):
    • Up to £125,000: 0%
    • £125,001 to £250,000: 2%
    • £250,001 to £925,000: 5%
    • £925,001 to £1.5 million: 10%
    • Above £1.5 million: 12%

The reduction in thresholds means that purchases between £125,001 and £250,000 will now incur a 2% Stamp Duty rate, which is currently zero. This change could increase costs by at least £2,500 for transactions within that range. Prompting buyers to consider moving their timelines up to avoid this additional expense.

Implications for second home buyers

Increased Costs for Investors: The 5% surcharge on second homes starting in October 2024 will directly affect buy-to-let investors and those looking for holiday properties.

Coordinating Sales and Purchases: For those buying a new primary residence, it’s essential to complete the sale of your current home before finalising the new purchase to avoid the surcharge. Remember, the refund option remains available for 36 months if the sale is delayed.

Buying Ahead of the Spring Threshold Reversion: If you’re considering buying a primary or second home in the lower property bands, purchasing before the threshold changes will help you benefit from more favourable Stamp Duty rates.

Budgeting for Stamp Duty: Stamp Duty must be paid within 14 days of completing the property purchase. So it’s vital to have funds available to avoid penalties or interest. Collaborate closely with your solicitor or conveyancer to ensure a smooth transaction and a clear understanding of your tax responsibilities.

With these changes on the horizon, timing will be critical for anyone planning to buy a second home or an investment property. Being informed about the new rates and thresholds can help you make better decisions regarding when to buy and how to manage your finances effectively. Consulting a property expert or financial advisor can also provide valuable insights into navigating these changes and optimising your investment strategy.

Contact us

If you’re looking to buy a second home, get in touch with our team today for help on your journey!

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Why choose CR Real Estate: The best estate agent in Gillingham for selling your home

Posted on by Sophie Winter

If you’re considering selling your home in Gillingham, selecting the right estate agent can make all the difference. With a trusted partner, you can navigate the market confidently, secure the best value, and enjoy a seamless selling experience. CR Real Estate, known as the best estate agent in Gillingham, is committed to delivering unparalleled service, expert insights, and a dedication to each of our clients. Here’s why CR Real Estate should be your first choice.

Unmatched local expertise in Gillingham

One of the most important benefits of working with CR Real Estate is our wide knowledge of Gillingham and the surrounding areas. We have been actively involved in the local property market for years. Which has given us insights into each neighbourhood, from Rainham to Twydall, Hempstead to Wigmore. This local expertise allows us to not only price your property accurately. But also connect with the right buyers who are looking for a home like yours in Gillingham.

A tailored marketing strategy for your home

To be the best estate agent in Gillingham, CR Real Estate goes above and beyond to ensure your property stands out in a competitive market. Our marketing strategies are carefully crafted for each property and include high-quality professional photos, engaging property descriptions, and listings on all the major property portals. We utilise social media, email marketing, and even local advertising to make sure your property receives maximum exposure. This multi-channel approach ensures that your property is seen by as many potential buyers as possible, speeding up the sale process and achieving the best price.

A personalised and client-first approach

At CR Real Estate, we understand that every property sale is unique, and every client has different needs. We take the time to understand your goals, answer your questions, and keep you informed throughout the selling process. From the initial valuation to negotiations and the final sale, our team is with you every step of the way. Providing guidance and ensuring you’re comfortable with every decision. This commitment to a personalised approach has earned us a reputation as the best estate agent in Gillingham.

Highly experienced and qualified team

Our team at CR Real Estate is made up of experienced professionals who bring a wealth of industry knowledge. We stay up to date on market trends, legal requirements, and best practices. Ensuring that you receive accurate advice and exceptional service. Our team is trained to handle all aspects of the selling process, including negotiations, viewings, and paperwork, so you can rest assured that your property sale is in capable hands.

Transparent communication and honest valuations

One of the biggest challenges when selling a home is understanding how much it’s worth. At CR Real Estate, we pride ourselves on offering honest, data-backed valuations. We provide a thorough market analysis, explaining every aspect of the valuation so you know exactly what to expect. Moreover, we keep you updated with regular market insights and provide honest feedback after each viewing. This level of transparency not only builds trust. But also ensures that your expectations align with the realities of the current market.

A proven track record of success

As the best estate agent in Gillingham, CR Real Estate has a proven record of helping homeowners achieve outstanding results. Our client testimonials and successful sales speak for themselves. We are dedicated to delivering results that not only meet but exceed expectations. Whether you’re looking for a quick sale or the highest possible price, we have the experience and drive to make it happen.

Choosing CR Real Estate: your trusted partner in Gillingham

Selling a property is one of the biggest financial decisions most people will make, and having a partner who understands the local market, prioritises your needs, and delivers results can make all the difference. At CR Real Estate, we strive to offer the best estate agent experience in Gillingham. We put our clients first, using our local expertise, and providing a personalised, results-driven service.

If you’re ready to sell your home in Gillingham, trust the best estate agent in Gillingham. Book a valuation online today for a free, and let us show you how we can make your property sale stress-free.

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Top 10 things to know before buying your first home

Posted on by Sophie Winter

Congratulations on deciding to buy your first home! To help you navigate this exciting journey, here’s a guide designed for first-time buyers to ensure you feel equipped and confident throughout the process.

Get your finances in order

Start by organising your finances, as your credit score significantly impacts your mortgage options. Pay all your bills on time and avoid making large purchases prior to applying for a mortgage. Consult a professional to understand what you can afford, and remember to factor in additional costs like solicitor’s fees, stamp duty, and home insurance. These expenses can influence the price range of homes you consider.

Decide what you want

Take your time to view various properties and create a list of your ideal home’s features. Split your wish list into essentials and items you can compromise on. This thoughtful approach helps prevent impulsive decisions and ensures you’re clear on your home preferences while remaining realistic within your budget.

Get to know local agents

A knowledgeable estate agent can provide valuable insights about both the properties and the neighbourhood. Visit multiple agents and discuss your requirements in detail. Building a rapport with them increases the likelihood they’ll remember you when a suitable property becomes available. Stay proactive by monitoring new listings on their websites and other online platforms.

Stay flexible

While having a list of priorities is helpful, being flexible is crucial. Don’t dismiss a potential home simply because it’s slightly outside your preferred area or lacks a specific feature. Consider how you might creatively enhance the property’s décor or outdoor space.

Consider renovations

If you’re not specifically looking for a fixer-upper, be cautious about buying a home that requires significant renovations. This type of investment can be risky. If you choose a property needing work, ensure you get a thorough inspection to understand its condition, ideally after a rainy day to check for potential issues like leaks or foundation problems.

Learn about your prospective home

Before making an offer on your dream home, gather as much information as possible. Investigate how long the property has been on the market, request utility bills, and hire a surveyor to assess the home’s condition. Familiarise yourself with the area, including nearby amenities, schools, and local establishments, as these factors will affect your everyday life.

Hire a good Solicitor

As a first-time buyer, it’s essential to find an experienced solicitor to handle Stamp Duty, Land Registry, and contracts. Avoid using the same solicitor as the sellers to prevent conflicts of interest.

Don’t be afraid to negotiate

Property prices are often negotiable, so don’t hesitate to discuss price adjustments. If the home requires repairs or your survey reveals defects, leverage this information to negotiate a more favorable price. While your estate agent can assist in negotiations, you should ultimately be in control of the decision.

Don’t feel pressured

Buying your first home is a significant commitment, so take your time making decisions. Resist the urge to rush; if you don’t need to move immediately, explore your options. It’s vital that you feel comfortable and happy in your new home.

Be patient

The home-buying process can take longer than expected, so focus on your search without overwhelming yourself. Balancing other major life events, like planning a wedding or starting a family, alongside buying your first home can be stressful. Embrace the experience; purchasing your first home is a momentous step that should be cherished.

Contact us

Ready to start your journey toward buying your first home? Get in touch with our team today to begin your search!

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What is a qualified buyer?

Posted on by Sophie Winter

Have you ever heard the term “qualified buyer”? Estate agents often use it, and it’s important to understand about the phrase when selling your home. But what does it really mean, and why should you care?

What does a qualified buyer mean?

A “qualified buyer” refers to someone whose financial and purchasing position has been confirmed by the estate agent. Agents register buyers and match them with properties that fit their criteria, much like a matchmaking process for homes. This helps reduce wasted viewings, as buyers are only shown properties that meet their needs.

However, qualifying a buyer goes beyond preferences like the number of bedrooms. It’s about confirming their financial readiness. This ensures you don’t waste time preparing for viewings or get your hopes up over offers that can’t be followed through.

When an agent says a buyer is “qualified,” it means:

  • They’ve confirmed their ability to make the purchase. This inlcudes whether they need to sell a property first or serve notice to a landlord.
  • They’ve provided proof of how they’ll fund the purchase. Whether it’s through cash, a mortgage, or the sale of another property.
  • They’ve shared the status of their own property sale. Whether it’s already on the market, under offer, or ready for sale.

Why is this important?

Imagine receiving a great offer on your home, only to find out later that the buyer still needs to sell their property, which isn’t even listed yet. This could cause significant delays or even a collapsed sale. Knowing a buyer’s financial position upfront gives you confidence that the offer is genuine and that the sale can move forward smoothly.

Your agent will also use this information to gauge how quickly each buyer can proceed. This ensuring that the process aligns with your needs. For example, a cash buyer ready to move in four weeks may not suit you if you’re not in a rush.

Knowledge is key

Understanding the buyer’s position from the start helps you plan effectively, save time, and avoid potential pitfalls. If this is new to you, reach out to our team for expert advice and ensure you’re fully prepared for a successful sale.

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Mortgage Advice: finding the right deal for you

Posted on by Sophie Winter

When it comes to getting mortgage advice or securing a mortgage, many people head straight to their bank or building society, often where they hold their current accounts. While this is a common approach, it may limit your options and prevent you from finding the best deal.

To ensure you find the most suitable mortgage for your specific needs, it’s essential to explore a broader range of choices. This is where the difference between going direct to a lender and using a mortgage adviser becomes critical. As estate agents, we work closely with the mortgage advisers at The Residential Mortgage Hub (also known as a mortgage broker) who have access to an extensive range of mortgage deals available across the market.

Why speak to a mortgage adviser?

A mortgage adviser plays an important role in helping you navigate the mortgage landscape. With access to thousands of mortgage products from multiple lenders, they can provide expert mortgage advice that’s tailored to your financial situation. By working with a mortgage adviser early in the process, you gain valuable insight into the options available to you, even before you start searching for a property.

A mortgage adviser will:

  • Explain the first steps in getting a mortgage.
  • Guide you on the necessary financial research and budgeting.
  • Help you save for your deposit.
  • Search for the right mortgage deal and handle the application process on your behalf.

With their expert mortgage advice, they can even provide a clear understanding of how much you may be able to borrow using their budget planning tools. This insight is invaluable when you reach the exciting stage of looking for your new home.

Finding the right mortgage for your needs

Once you’ve saved your deposit and found a property, your mortgage adviser will search thousands of deals from a wide variety of lenders.

They understand the mortgage market, and more importantly, which lenders are likely to approve your mortgage based on your individual circumstances and the type of property you’re purchasing. Not all lenders will approve mortgages for every buyer or every property type, so having professional mortgage advice can make all the difference.

With an experienced adviser by your side, you’ll be less likely to face the disappointment of a mortgage rejection, giving you peace of mind throughout the home-buying process.

They handle your mortgage application for you

After finding the right mortgage for you, they’ll manage the entire application for you. From handling the paperwork to liaising with surveyors and your legal team, they’ll save you time and ensure everything is in order. They will also keep you informed at every stage and are always available to answer any questions you may have, no matter how small they seem.

Mortgage protection insurance

Beyond your mortgage, you’ll need to consider essential protection policies such as buildings and contents insurance, as well as life and critical illness cover. These are important steps to safeguard your home in the event of unforeseen circumstances.

Their mortgage advisers, are also qualified to provide advice on these insurance options. They’ll shop around for the most suitable policies for you, taking care of the paperwork so you can focus on your new home with confidence and security.

Book your appointment with The Residential Mortgage Hub

Buying a home can be a stressful process, but with the right mortgage advice, they can make it a lot easier. Book an appointment with one of their mortgage advisers today, either online or by calling 01634 968111!

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598. For insurance business we offer products from a choice of insurers. As with all insurance policies, conditions and exclusions will apply.

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A homebuyer’s guide to changing mortgage rates

Posted on by Sophie Winter

Mortgage interest rates are falling, which is encouraging, but recent fluctuations can be a bit unsettling. That’s why we’ve made this guide to help you understand how you can insulate against changing interest rates.

You might be able to move home without altering your mortgage.

If you want to move and take your existing mortgage rate, which is lower than the current rates, porting your mortgage can be a great option. This allows you to transfer your current mortgage to your new home. Additionally, you might be able to borrow extra funds, but keep in mind that terms vary between mortgage providers.

Fix your interest rate 

Variable interest rates are typically higher than fixed rates, and many people prefer the stability and predictability of fixed-rate mortgages. However, if variable rates drop below current fixed rates, you save money. This usually occurs when interest rates are very low. If you intend to keep your property for a short time, a variable-rate mortgage might be suitable. It’s important to remember that there are many types of mortgages to consider and a mortgage broker such as The Residential Mortgage Hub can help you understand more about your options.

Explore different mortgage types 

With thousands of mortgage products available, it’s important to find the best deal for you. An offset mortgage lets you use your savings to reduce your mortgage balance, resulting in lower interest payments. Guarantor mortgages and 5% deposit mortgages can help you in making your first or next property purchase, while interest-only mortgages are often beneficial for buy-to-let investors.

Talk to a mortgage adviser    

A larger deposit also results in paying less interest. The expertise and guidance of a good mortgage adviser can boost your confidence when applying for a mortgage. A quick discussion with them can save you both time and money!

Higher mortgage rates can lead to a better deal  

As mortgage rates decline, property prices often rise due to increased demand. Consequently, the contrast between higher mortgage rates and lower purchase prices may not necessarily result in reduced mortgage repayments while waiting for interest rates to drop. In a stable market, fluctuations in mortgage rates are typically nothing to fret about and can even present opportunities for better deals. Additionally, selecting the right property significantly influences securing your future as you negotiate the offer price. A market characterised by a balanced pace without intense competition also creates a more favourable environment for buying.

How can we help you?

Moving to your perfect home is always easier with the right help. Contact our team of industry experts today for help and guidance, simply contact our office on 01634 570057.

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

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Buying a home: common questions asked by first-time buyers

Posted on by Sophie Winter

Starting the journey to becoming a first-time homeowner means navigating through a maze of industry jargon, documents, and processes. For those new to the home-buying process, it can be a big learning curve.

We’ve spoken to our team of experts to find out what reoccurring questions our buyers have asked – and then we’ve listed out all the answers for you in this helpful guide.

How do I make an offer on a property?

Your offer will need to be submitted to the selling agent, and we would always recommended to do so in writing as well.

You should provide as much detail as possible to support your offer; this helps the current owner of the property to make an informed decision. This will need to include information about your deposit (including proof of funds, such as a bank statement or accountant’s letter), whether you have a mortgage offer secured, your desired timeframe, and details of your solicitor.

It’s worth noting that in some cases sellers may have multiple offers all equating to the same value, so it’s worthwhile expressing your love and enthusiasm for the property.

Can I offer on two properties?

In principle, you’re free to make offers on as many properties as you wish. Offers don’t carry legal obligations, and are often only chargeable after an offer is accepted, prompting the hiring of surveyors and similar services.

However, it is worth noting that submitting multiple offers may portray you as indecisive and unreliable as a buyer.

What is a good opening offer?

Different buyers approach their initial offer differently: some may propose an amount below the seller’s asking price, while others might offer the full amount right away.

A recommended strategy is to offer between 5% and 10% less than the market price, ensuring there’s room for negotiation by staying below your maximum limit.

It’s also wise to research house prices in the area, considering factors like square footage and number of rooms. This information will help you make sure you are putting in a fair offer.

Do I need to have a mortgage before making an offer?

Although you cannot finalise your mortgage application until after your offer has been accepted, you can obtain an agreement/mortgage in principle (AIP/MIP) before starting your property search.

An AIP/MIP shows the amount a mortgage lender may potentially loan you for purchasing a property. This is used as evidence to sellers that you’re a serious buyer with good prospects of securing the necessary financing.

Obtaining an AIP/MIP is a quick and straightforward process, our partnered Mortgage Broker, The Residential Mortgage Hub will be able to assist you with this if you’re looking for help.

When do I put an offer on a property?

The timing for making an offer on a property rests on two key factors:

  • The level of competition for the property you’re interested in.
  • How quick you can make a decision on the amount you want to offer.

In a market with high buyer demand, making an offer quickly is necessary. However, it’s crucial to allocate sufficient time to carefully consider the offer amount you’re comfortable with.

What are the main costs of buying a property?

Purchasing a home comes with significant expenses, particularly saving for the deposit, which is often the greatest hurdle for first-time buyers.

Typically, you’ll need to provide a deposit of at least 5% of the property price. According to Halifax’s latest data, the average deposit stands at 21%. However, aside from the deposit, there are numerous other costs to consider.

Before starting property viewings, it’s advisable to familiarise yourself with the various fees you’ll encounter along the way to avoid any unpleasant surprises.

  • Conveyancing Fees: You will normally need a solicitor or conveyancer to facilitate the property purchase. Anticipate spending between £500 and £1,500 for these services.
  • Land Registry Fee: The Land Registry maintains records of all registered properties in England and Wales. While your solicitor may incorporate this fee into their conveyancing package, it’s important to check. Fees typically range from £90 to £140, depending on the purchase price.
  • Stamp Duty: Stamp duty is a mandatory payment on properties above a certain price threshold. The amount varies depending on the property’s value. You can use a stamp duty calculator to estimate your payment.
  • Homebuyer Survey: A thorough homebuyer survey assesses the property’s condition, potentially uncovering issues and serving as a bargaining tool. Costs vary between £400 and £1,500.
  • Mortgage Fee: Lenders often charge a fee for setting up the loan, typically between £1,000 and £2,000. Some lenders may allow you to add this fee to the mortgage amount.
  • Valuation Fees: Mortgage lenders may charge valuation fees to ensure the property’s value aligns with the purchase price. Expect to pay between £160 and £600.
  • Mortgage Broker: If you are considering using a mortgage broker, they may charge a fee ranging from £300 to £2,000.
  • Moving Costs: Costs vary based on the amount of furniture and distance traveled. The average cost for a 3-bedroom house moving 50 miles is £1,181.
  • Building Insurance: Most mortgage lenders require building insurance, averaging £110 annually.

Do I need a mortgage broker?

While it’s not mandatory, using the services of a mortgage broker can be highly beneficial, especially for those unfamiliar with mortgage processes. Mortgage brokers have access to many loan options that may not be readily accessible elsewhere, including exclusive deals and notifications of limited-time mortgage deals tailored for certain individuals needs.

Got any other questions?

Our team of industry experts are here to help and answer any of your questions about the home buying process. Simply contact our office on 01634 570057.

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