Buy-to-let investors are being warned that time is already running out for purchases to go through before the 3% Stamp Duty charge takes effect on April 1st 2016.
One mortgage business in particular believes that it takes an average of 95 days for a buy-to-let mortgage application to be completed. From today, there are just 79 days until the new legislation comes into force, meaning agents, valuers, conveyancers et al face an extremely busy period.
Completions
Keystone Buy to Let Mortgages has urged brokers to submit applications as soon as they can in a joined effort to try and ensure that cases are completed in time. In addition, the business said that they will prioritise all applications submitted before the 29th January.
David Whittaker, MD of Keystone, said, ‘since the surcharge was announced we have been preparing for an increase in applications, making sure that systems are in place and staff are ready.’[1]
Time ticking to avoid Stamp Duty hike deadline
‘We have also been working closely with our valuers and solicitors to ensure that they too are prepared for what we anticipate will be a very busy period. Getting purchase applications over the line before April 1st is our priority. It will save borrowers thousands of pounds,’ he continued.[1]
Concluding, Whittaker said, ‘the deadline will give us a little over eight weeks to take cases from submission to completion. In most instances, that will be do-able-even for limited company applications which, because they require a greater underwriting skillset, can take longer to process.’[1]
[1] http://www.propertyindustryeye.com/clock-already-ticking-for-buy-to-let-deals-to-escape-stamp-duty-penalty/