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Mortgages for Business updates Stamp Duty calculator

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  • 30/11/2015
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Mortgages for Business updates Stamp Duty calculator
Mortgages for Business has updated its residential property Stamp Duty calculator to help landlords compare tax rates payable pre and post 1-April 2015.

The calculator was updated in response to the Chancellor’s Autumn Statement announcement that purchases of buy-to-let and second homes would be subjected to a surcharge of 3%.

Steve Olejnik, sales director, Mortgages for Business, said: “The calculator will demonstrate how much landlords could save if they act now to get purchases completed before 1 April.

“This is particularly important for those who are considering transferring their properties from individual ownership to a corporate vehicle. It’s going to be an expensive exercise anyway – there’s no point in making it worse.”

Many landlords have started making purchases and moved their portfolio into limited companies to avoid the 20% base rate tax relief cap for buy-to-let landlords announced in the Summer Budget.

“There are only eight or nine buy-to-let lenders offering products to limited companies and as such, they are likely to be swamped in the run up to the deadline.”

He added that the average processing time on a buy-to-let mortgage from application to completion is six to eight weeks when things run smoothly, and that landlords need to act now to ensure they do not get held up in processing queues brought on by increased demand.

While the Stamp Duty surcharge is expected to deter some would-be landlords, Mortgages for Business estimates that established landlords will continue to grow their portfolio and factor in the increased costs.

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