The temporary exemption announced in the chancellor's last budget that meant first time house buyers didn't have to pay the 1% stamp duty on homes costing up to £250,000 is to be scrapped by March 24th next year.

Purchasers should therefore complete as soon as possible to take advantage of the exemption.

Any saving is worth it

That means that hard-pressed buyers keen to get a first foot on the property ladder have to complete no later than March 23rd 2012 in order to qualify for the relief.  Although the government says that the measure has been "ineffective", we here at Access Legal think it still represents a valuable saving for cash-strapped buyers, especially those purchasing in London or the Home Counties where even modest one-bed flats could easily reach the £250,000 upper limit for the relief.  In fact, any saving in the cost of buying or selling a home anywhere is worth chasing, particularly with many mortgage lenders demanding higher deposits from most first time buyers.

Completion is the key

It's important to note that the exemption will continue to apply only if completion occurs on March 23rd, not exchange of contracts.   This is the agreed date you will actually move into the house having first paid the full balance of the purchase price to the seller through your solicitor. 

If you've only exchanged contracts (paid the deposit to your solicitor and agreed a completion/moving date) by that time you won't be eligible for the relief and will have to pay stamp duty on top of any other costs.

Act as quickly as possible

It's difficult to give standard timescales for conveyancing -   the legal requirements involved in the process of buying and selling a house.  How long it takes depends on several factors, such as whether there is a chain involved, time of year,  how quickly all the solicitors  process the paperwork, condition of the property, availability of mortgage finance etc. 

In most cases with first time buyers the chain, if any, is usually quite short, so a typical, straightforward transaction could be completed in around eight weeks or so.   Whatever the circumstances, Access Legal's conveyancing team is urging first time buyers to act as soon as possible.  A saving of 1% may not seem like much, but it could go some way to paying for that dream fitted kitchen or any other household purchase you need to make a house into a home.

Stamp duty thresholds

0% payable on properties to £125,000
1%: payable on properties from £125,000 up to £250,000 (first time buyers exempt - ends March 24th 2012)
3%: payable on properties of £250,000 to £500,000
4%: payable on properties of more than £500,000
5%: payable on residential properties only more than £1 million

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