The stamp duty extension was very welcome news for everyone and eases the pressure for a fast sale, however if you are stuck in a chain that July deadline will come round sooner than you want it to. Mortgage companies are tightening their belts as a result of the pandemic; a friend of mine who is looking to buy a house with plenty of land has been told that no lender has an appetite for the deal as there are outbuildings on the plot, is that a credible excuse not to lend to someone who has a 30% deposit.
The longer the chain you are in, the more likely you are that somewhere down the line a lender will get cold feet and pull the plug on their mortgage offer thus breaking the chain and throwing the whole process into chaos.
Forbes Advisor who provide financial services reported this week on additional concerns that could delay a purchase and prevent you getting not only a fast sale but struggling to hit the stamp duty deadline. Mark Hooson said,
“Property buyers looking to take advantage of the stamp duty holiday extension in England could miss out because of local authority admin backlogs in some parts of the country.
It (Stamp Duty Holiday) caused a property boom that had a knock-on effect for local authorities who had to carry out traffic and planning searches for the conveyancers involved in the sales.
The holiday was due to close at the end of this month, but the Chancellor announced it would be extended to 30 June in the Budget this week.
Digital broker Mojo Mortgages says that the 16-week extension may not suffice for buyers in parts of the country where local authorities have long backlogs for carrying out searches.
It means that those in the worst-delayed areas could end up paying thousands in stamp duty land tax even if they started the buying process in good time to meet the new June deadline. In total, buyers in 32 areas could miss the newly announced deadline.
Some councils are experiencing 36 week backlogs, that could prevent buyers in their area from benefitting from the tax break.
Other local authorities are working through backlogs of around 16 weeks, which means purchases could go right down to the wire, with buyers unsure of whether they’ll have to pay stamp duty or not.
The data is based on average buying times, current delays, and the average time it takes for the conveyancing process to be carried out (according to the HomeOwners Alliance).
Mojo’s Richard Hayes said: “Those who have yet to begin their property hunt may not have as long as they think. Although these times are average and theoretical, they do help people realise how long things can take, and how tight it could be.”
According to separate analysis of half a million property sales across the UK by Movewise earlier this year, the average property is a taking a month longer to sell once under offer because of these backlogs.
A spokesperson for The Conveyancing Association said averages should be used with caution, as leasehold transactions outside of lockdown take four weeks longer to complete, on average.
If you find yourself stuck in a chain yet looking for a fast sale then contact us and we will be on the case straight away with a fair price for a fast sale.