Quantcast
Menu

Editor's Pick

Want to beat the Stamp Duty deadline? Start your property search now

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
30/10/2020

Don’t leave it too late to buy a property if you want to avoid paying Stamp Duty on purchases up to £500,000

The average homebuying journey is taking 15 weeks from start to finish, according to a survey from Legal & General Mortgage Club.

This means homeowners need to start searching for a new home on Sunday 1st November if they want to benefit from the temporary Stamp Duty holiday, or risk missing out.

The housing market continues to experience extraordinary levels of demand since reopening after lockdown and it means that the process can take longer than usual.

Although you currently have till 31st March 2021 to take advantage of the incentive, you could be looking at an average of four months or longer to complete a purchase.

Delayed mortgage offers

Legal & General Mortgage Club surveyed estate agents, surveyors, conveyancers, and housebuilders to build an estimated timeline for a typical housing journey given the current delays.

The majority (61%) said that, before the pandemic, an application for a consumer with straightforward circumstances took less than two weeks to move to mortgage offer.

Yet, since the re-opening of the mortgage market, advisers have found that this process is taking much longer – 30% said it is taking three to four weeks with a further 32% saying it is taking four to eight weeks.

Borrowers with more complex backgrounds, such as those with impaired credit histories or who have been on furlough, may need to allow up to six to eight weeks (28%) to get approved for a mortgage.

Further hold-ups

The mortgage journey is not alone in facing delays. Conveyancers indicated that the time between offer and exchange is now taking three weeks, while the period between exchange and completion stands at one to two weeks. Responses from estate agents also indicated that the average time between receiving an offer on a property and completion has increased by some eight weeks.

It means a typical timeline to purchase a property is now up to 15 weeks or 17 weeks for buyers with more complex requirements. Legal & General has therefore suggested that buyers need to begin their search by 1st November to take advantage of the Stamp Duty holiday to give themselves enough breathing space should any issues arise before completion.

Kevin Roberts, director of Legal & General Mortgage Club, said: “The Government’s Stamp Duty holiday has helped to encourage many hopeful buyers to press ahead with their homeownership plans, providing a much-needed boost to the economy. However, those wishing to take advantage of the ‘holiday’ will need to plan carefully to avoid missing the March 2021 deadline, particularly if they have their own property to sell first.

“Buyers should speak to a mortgage adviser when creating a plan as these professionals understand how to navigate the ongoing changes to the mortgage and homebuying process.”