August 2020 Blog

  • 4 weeks ago
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The stamp duty holiday explained



We were pleased to hear last month that house buyers will no longer have to pay stamp duty on houses up to the value of £500,000 until March 31, 2021.


Chancellor Rishi Sunak announced the stamp duty holiday with immediate effect on July 8.


It’s an initiative that builds confidence for buyers, sellers and lenders with the hope and expectation that this will get the property market booming.


It means more buyers have a greater incentive to search and hopefully purchase properties that previously may well have been out of their budget. This in turn will help sellers to gain greater interest in their properties. The benefits of this stamp duty holiday have also been extended to investment buyers who, even though will still need to pay an element of stamp duty, will benefit from a reduced expense.


Stamp duty land tax (SDLT) can cause a challenge for house buyers and sellers alike. Having to budget for this additional expense can put a strain on the financial power that buyers have when searching for their next home, and it could well be that this extra cost could hinder them back from buying their dream home.


Before, you would have had to pay SDLT on any property over £125,000. But now, this threshold has been increased to £500,000.


How buyers benefits: The chancellor introduced this measure immediately so as to provide a timely shot in the arm for the property industry in order for homes buyers and sellers to benefit straight away.


If you’ve already exchanged contracts and are yet to complete, don’t worry, the stamp duty holiday will also apply to you.


How sellers benefit: For sellers, this means the possibility of attracting more interest to your property.


Those buyers who were unsure whether to invest in purchasing a house just yet may be convinced by the temporary savings. And with a potentially bigger budget too.


The market is precious at this time and buyers know that. It’s likely that you’ll see, or are already witnessing, more viewings than you ever expected before.


How investment buyers benefit: Things have also changed for those buying a second home or buy-to-let property under £500,000.


Before today, if, for example, you bought an investment property for £250,000, you would have been liable to pay 3% on the first £125,000, and 5% on the second £125,000. This would result in a stamp duty bill of £10,000.


But, until March 31, 2021, you’ll only pay 3% SDLT on the whole purchase price. This means a lowered bill of £7,500. That’s a saving of £2,500.



A word from Rajesh Modha, chartered financial planner and owner of wealth management boutique, Finance Lab





Since the relaxing of the lock-down rules, the property market feels like it has come back with some gusto.


Lenders have relaxed the maximum that residential applicants can borrow. A handful will now lend upto 90% of a property’s value. The majority of high street lenders will lend upto 85% of a property’s value. We’re finding that the issue hasn’t been obtaining funding, but assessing the increased level of information that lenders need to satisfy the underwriting process.


The buy-to-let application process has generally been less complicated. The key here is to collect as much information up front as possible. Lenders are still lending upto 75% of the property’s value.


Overall, the mortgage market is holding up very well at present, but the options available can be very confusing. When speaking to a broker, ensure you understand how often they will keep you informed of your application progress – for us its weekly.



Meet The Team


As we continue our journey as The Lettings and Sales Business, we thought we would take the opportunity to reintroduce our team.


Co-founders and directors, Jaz Kaur and Narinder Nijjar, worked previously as consultants for property businesses. Their aim was to fix the neglectful ways companies treated their clients so that vendors, buyers, landlords and tenants received a top class service.



meet the team


Narinder Singh Nijjar – Director & Co-Founder

Regarded as an expert in the property field Narinder has been working within the industry for 15 years. In addition to this, he has a wealth of experience in sales and property development. He is also the Director and Co-Founder of Fraser Stretton & 1 Stop Maintenance and was also a Judge on the BBC programme The Best House in Town.


Jaz Kaur – Director & Co-Founder

Jaz has been working within the property industry for 20 years gaining vast experience and knowledge of the lettings and sales sector. After a brief foray into the world of law, she realised her true passion and calling was property. Jaz has had exposure to the corporate world through other estate agents but is now making a difference in the independent sector. She is also the Director and Co-Founder of Fraser Stretton and 1 Stop Maintenance.


Xenia Hollis – Branch Manager

Xenia manages both the lettings and sales functionality within the business.


Laurie Rickaby (Lulu) – Valuer & Lister

Lulu oversees sales valuations, listings and attends both sales and lettings viewings. She has progressed rapidly into this role since joining the company.


Lauren Challis – Property Assistant

Lauren oversees applicant enquiries, arranges viewings and helps to support and underpin the administration of the office. It is great to have Lauren on board and we are genuinely excited by the potential she has to grow with our company.


Sat Gill – Business Development Manager

Sat is responsible for the business development of the company across the midlands in addition to also being responsible for a similar function at the two sister companies also owned by the Directors Jaz and Narinder.


To take advantage of the new rules, contact us today on 0116 2969699 or email

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