Buyers allowing vendors to stay on after completion

Buyers are allowing vendors to stay in their home after completion in order to beat this Fridays’ Stamp Duty Land Tax deadline.

Central London agent W.A. Ellis said that there has been a rush to complete purchases of second homes and buy-to-let properties, but warns that the market will slow ahead of the EU referendum.

Director Richard Barber said: “Interestingly, we have seen several cases where an owner has been allowed to remain in occupation, on a licence, after completion, so that the purchaser is able to complete the sales transaction and pay the reduced rate of SDLT.

“This arrangement has worked well for some buyers and vendors alike, giving the vendor more opportunity to find another home and also enabling the purchaser to realise a 3% discount on the SDLT charge.

“In addition to the increased SDLT, there has also been much talk as to whether a Brexit will affect the property market.

“Sentiment is a huge driver of the residential property market within prime central London and the uncertainty will undoubtedly have an impact on transaction levels over the next two months, particularly as the odds on us leaving the EU are beginning to narrow.”

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One Comment

  1. Rob Hailstone

    A practical solution like this can be a good thing, but Let’s hope where appropriate, lender consent has been obtained and suitable insurance cover has been confirmed.

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