When buying a property, it’s not just the cost of the property to prepare for, a Stamp Duty is also a required fee when purchasing one. This is an amount of tax applied to every property being sold which will be paid by the buyer, however the amount depends on the cost of the property or if you are buying it as a BTL or a second home.
A residential property with an average amount of £ 125,000 will not be charge of any Stamp Duty, while an amount from £ 125,000-£ 250,000 is charged with 2% Stamp Duty and 5% for amounts between £ 250,000 and £925,000. However, prices exceeding £ 1.5 million will be charged with 12%.
Stamp Duty was increased by 3% from the 1st of April 2016 and this is applicable to landlords or anyone purchasing a property as a second home or BTL. For instance, if a standard residential property is purchased for £ 175,000 then an amount of £ 1000 is charged as the Stamp Duty but if the property costs more than that amount then the Stamp Duty increases to £ 5000.
If it happens that you are still in the process of selling you old property whilst buying a new one a higher Stamp Duty will be charged for you, however a refund is expected within 36 months.