The Law Society has warned its members to inform clients and estate agents if there is a chance that ongoing transactions for additional homes could miss the March 31st deadline to avoid stamp duty hikes.
In an address to members, the Society said that the deadline is piling pressure on those involved in transactions. However, it accepts that the deadline is immoveable and that lawyers should inform all of those who could be affected if one element of a deal could threaten to see it fail to be completed before the set date.
Warning
More specifically, the Society told members, ‘you should warn your client that if completion is fixed for a date on or before March 31 but completion takes place after March 31 then, provided the transaction is subject to the new SDLT provisions, the additional SDLT will be payable. The reasons for a delayed completion will not be material and will include the sellers’ default.’[1]
‘You should explain to your clients that there are aspects of the transaction which are to some extent beyond your control, for example, if you are still waiting for a mortgage offer or search results, or if the transaction is leasehold and you are still awaiting information from managing agents and landlords, or if you are not certain that those on the other side of the transaction-or indeed further along the chain-will be in a position to deal when requested and that you are therefore unable to give warranties as to timings,’ the note continued.
Lawyers warning on stamp duty deadline
Further information of the implementation of the stamp duty is expected in Wednesday’s budget. The Law Society is instructing members to tell clients of the uncertainties until that time.
For comprehensive news on budget announcements that will impact on the sector, keep checking Landlord News for the latest updates.
[1] https://www.estateagenttoday.co.uk/breaking-news/2016/3/lawyers-advised-to-inform-agents-if-stamp-duty-deadline-cannot-be-met