Getting to know about houses before they are openly marketed by selling agents known as ‘off market’ properties for our clients, negotiating the best prices to buy or rent will always remain our core and fundamental business and be our prime objective.
On several recent transactions we have negotiated additional, substantial savings on behalf of our clients using our professional knowledge of the buying process and our expertise. Due to a ‘legal loophole’ classification when calculating SDLT (Stamp Duty, Land Tax) by identifying that the property would qualify for ‘multiple dwelling relief’ consequently the buyer could pay a substantially different amount of Stamp Duty. This was quickly confirmed with a conveyancing solicitor who endorsed and agreed to our professional opinion.
What qualifies for multiple dwellings relief?
You can claim relief when you buy more than one dwelling where a transaction or several linked transactions include freehold or leasehold interests in more than one dwelling.
In this specific case, the property consists of the principal residence of 6 bedrooms, 4 bathrooms, 5 reception rooms and a large country style open plan kitchen, 18 acres and all in need of refurbishment and up- grading. The property has an attached Granny Annexe in the basement that has its own separate front door/access to the annexe, in which there is a kitchenette, a double sized bedroom and a reception room.
The third element to meet with the criteria is a self-contained cottage created from a former separate outbuilding again with its own separate front door/access to the cottage, in which there is a kitchen, a double bedroom and two small reception rooms.
What is fundamental is that all three ‘dwellings’ have been lived in and/or rented in the recent past which is another vital criteria for attracting the ‘multiple dwelling relief’.
Normally the SDLT payable on a £2m property would be £138,750. By applying ‘multiple dwelling relief’ the calculations by applying a second dwelling, the annexe, reduces the total SDLT down to £57,500.
Apply a third dwelling, the self-contained cottage, the total and the only amount of SDLT a buyer would pay = £23,696.25 on this £2m property. (a total saving on SDLT of £115,053.75).
In summary, my client has benefitted from the original negotiation of £500k plus an additional saving of £115,053.75.
The transaction is currently within solicitors’ hands and we are hopeful of an exchange of contracts within 15 working days from receipt of all legal documentation with a completion date to be mutually agreed, with any luck Easter 2021.
N.B. Figures correct at time of publication
For more information about buying your next home, please contact Premier Property Search on 01962 793100 or email enquiries@premier-propertysearch.co.uk
