Scotland – Stamp Duty Loser

The New Stamp Duty Bandings that will take effect from midnight will reduce the duty payable for most home purchases up to £937,500.  The bandings are very similar to those that will be introduced in Scotland next April, however for properties selling between £250,000 to £925,000 the marginal rate of duty payable will be double.

How the systems compare

Price Band                                    UK Stamp Duty from December 2014                       Scottish Land & Building Tax April 2015

0-£125,000                                   0%                                                                                     0%

£125,001- £135,000                   0%                                                                                     0%

£135,001-£250,000                    2%                                                                                    2%

£250,001-£925,000                   5%                                                                                    10%

£925,000- £1m                            10%                                                                                  10%

£1m-£1.5m                                    10%                                                                                  12%

£1.5m +                                         12%                                                                                   12%

This means that from April 2015 anyone purchasing a new home in Scotland below £250,000 will be £200 better off- however anyone buying above this level will become considerably worse off as the price rises. From April 2015 a property purchased in Scotland  for £925,000 will cost the buyer a whopping £33,500 more than the equivalent property south of the border.



Property Tax Changes

The Scottish Government has announced plans to change the rates of Property Purchase Tax from next April.

This will mean that there will be no tax on properties selling for less that £135,000.

For properties selling for between £135,000 and £250,000 a marginal rate of 2% will apply (ie only to the proportion above £135,000).

For properties of £250,000 to £1m a marginal rate of 10% will apply.

Properties selling for over £1m will attract a marginal rate of 12%.

This amendment to the property tax raises several questions.

1)       Is it fair?

2)       Is it too complex?

3)       What effect will it have on the property market in the months before it takes force?

4)       What effect will it have on the property market after it takes force?

5)       Will it heat up or cool down the Scottish property market?

Off Market Properties

Spyder Properties has been offered a large number of Off Market residential properties that will be available over the coming months. These will include tenanted rental properties, HMOs, bank repossessions and properties that require refurbishment.

The properties are mainly located in East/Central Scotland and will be available below market value.

If you are in the market to purchase properties to expand your portfolio or for refurbishment and would like details of these properties let us know.



Maximise Your Portfolio

Portfolio Landlords. Are you looking to release additional funds for additional purchases or to reduce your mortgage payments. Contact us for a free Landlords’ Portfolio Review.

0131 668 4616

Edinburgh Property Boom Sees House Sales Soar

EDINBURGH has been declared the hottest place to buy property in the UK – topping London and Glasgow in a nationwide league of rising house sales

Source Edinburgh Evening News

Mortgage Offer In Five Days.

Contrary to reports in the press stating that mortgages are more difficult to obtain and taking longer to process, we have just had a case going from application to full offer in only five working days.

The ‘secret’ to getting your mortgage processed quickly is having a well packaged case- in other words providing all the documents required promptly in one package.

If nothing else this proves that at least some lenders have got efficient mortgage processing in place.