House Buying Jargon Explained

The thought of downsizing can be a little overwhelming, especially if you have lived in a property for many years, and so attempting to sort through and, in some cases, throw out, your belongings can seem like an endless task.

That’s why we have put together our top tips to help you downsize smoothly.

Get organised

A well-planned move is usually an easy move, so get organised. Start by making a list of all the necessary tasks you need to undertake, and the timescale in which you need to complete it. Knowing what you have to do, and the time you have to do it will make the whole process a lot easier.

Be practical

When thinking about what to get rid of, be practical. If you’re moving from a four-bedroom house to a one bedroom flat, you probably won’t need the extra beds, mattresses and bedding.

Sort through your loft, garage and kitchen as these are all rooms that tend to accumulate clutter you can live without. Do you have tools you’ve never touched? Or perhaps an unused exercise bike lurking in the corner of the spare room? If something is beyond repair or if you haven’t used it for years, get rid.

Don’t be afraid to be ruthless

Ditching your clutter can be tough so it is important to remain strong when deciding what to keep and what not to. However, don’t feel as though you have to part with beloved possessions. For those items you just can’t make up your mind about, offer them to a family member or put them into storage; you don’t want to part ways with a family heirloom if you’re going to regret it later. If you can’t live without it, keep it.

Establish how much room you have

Being able to see how much space you have will help you to figure out what furniture you should take with you. Measure your bigger items of furniture to work out what you’ve got space for in your new home and then draw up a realistic floorplan so that you can see how your existing furniture will fit into each room.

Whilst the square-footage of your new home may not be too dissimilar from your current property, the layout could be completely different, so make sure to keep that in mind when thinking about larger furnishings.

Cash in on your clutter

Turn your unwanted items into cash. Online sites such as eBay, Shpock, Gumtree or even Facebook, can offer an easy way of selling your old stuff.

Carboot sales are a great way to get rid of items that aren't too valuable, but which are still taking up space. If you want to offload pricier items, research your local auction house and look for a NAVA Propertymark valuer or auctioneer in your area.

Think about additional costs

Whilst downsizing will free up some of your funds (including lower energy bills, reduced maintenance costs and possibly a smaller council tax bill) there are additional costs to moving which can add up. It is important to factor in any estate agency fees, and you will pay stamp duty on any purchase in excess of £125,000. Other expenses include solicitor and conveyancing fees, a survey home buyer's report and removals/packing which can all mount up.

Source: NAEA Propertymark

Big or small, the villages in England are always a treat. From St. Ives to Castle Coombe, we’ve all seen their many wonders. But what if you’re looking for an experience that’s off the beaten path? We’ve found some of the most charming villages in the UK that you migh never have heard of and one you will have if you live in Devon ! 

1. Cerne Abbas, Dorset

Cerne Abbas is a Dorset treasure that’s certainly worth a visit. Located along the River Cerne, the village grew up around an abbey and is known for its lovely architecture and the ‘rude giant’ that features in its fields. 

2. Hellidon, Northamptonshire

A quaint village in Northamptonshire, Hellidon is perfect for those searching for a quiet retreat. Try one of the many country walks, or if you fancy something a bit sportier, the pool and spa just outside the village is the perfect way to spend an afternoon.

3. Saltaire, West Yorkshire

Saltaire is a town next to the River Aire that developed around a Salt Mill in the nineteenth century. The mill has now been converted into an art space and a shopping arcade. Walking through the town can make you feel like you’ve stepped back in time. 

4. Framlingham, Suffolk

This market town is full of history and mystery. First known for its connections to the Howard family of Tudor fame, Framlingham is the birthplace of many other notable Brits such as Ed Sheeran. The ‘Castle on the Hill’ referenced in Sheeran’s hit single is a must-see.  

5. Presteigne, Wales

Presteigne is a town right on the border between England and Wales. It’s surrounded by stunning untouched countryside, which makes it perfect for a rural retreat, but that’s not all Presteigne has to offer. There’s a vibrant high street and cultural centre, and the annual Presteigne Music Festival is an internationally known event that’s not to be missed. 

6. St Mawes, Cornwall

A fishing village situated on the end of the Roseland peninsula, St Mawes is one of the most picturesque villages you’ve never heard of. It’s almost completely surrounded by the sea, which means that the views are spectacular. The community is known for its close ties and welcoming nature, making it a real Cornish gem. 

7. Aysgarth, Yorkshire

Aysgarth is located in part of the Yorkshire Dales National Park. It’s home to Aysgarth Falls, one of Britain’s loveliest waterfalls, which featured in the film Robin Hood.

8. Higher Bockhampton, Dorset

Higher Bockhampton is tucked deep into the Dorset countryside, surrounded by rolling hills and high hedges. This village is the setting of Thomas Hardy’s first five books and is where Hardy was born. You can even visit Hardy’s cottage, which is now a National Trust property. 

9. Hutton-le-Hole, North Yorkshire

It doesn’t get more English than this North Yorkshire village. There’s a lovely quiet stream, plenty of pubs, and moorland sheep graze throughout the village. It’s the perfect ice cream picnic spot during the summer months. 

10. Lustleigh, Devon

Lustleigh might be the most picturesque village in England. It’s one of Devon’s most well-maintained villages. Thatched cottages surround a 13th century church, bookended by the Primrose Tea Rooms and a village shop. Have a pint at the pub while you watch a cricket match on the local pitch. 

Are you looking for a home in one of these hidden gems? Contact your local Guild Agent Sawdye & Harris today. 

Landlords did you know that HMRC have lots of online help available to you? The Letting out Property online course explains the changes which introduced cash basis for landlords, the use of the mileage rate method for claiming motoring expenses and provides information on income tax relief on residential finance costs. It even explains how Capital Gains Tax affects you. They've even set up an Income from Property Forum.

For more information click below:

http://www.hmrc.gov.uk/courses/syob3/new_letting/HTML/new_letting_menu.html?utm_source=HMRC-DSBA-Partner&utm_campaign=IFP&utm_medium=Email

 If you are a Landlord and need help on renting your property just call Sawdye & Harris on 01364 652652.

Stamp Duty & Land Tax Explained

When it comes to bying a home, there are a lot of expenses you need to take into consideration. Along with legal costs and agent fees, it is likely that you will also have to pay stamp duty or land tax.

Here is everything you need to know about how land tax works and how much you will have to pay on your next home.

ENGLAND & NORTHERN IRELAND

What is Stamp Duty?

Stamp Duty - or Stamp Duty Land Tax (SDLT) in official terms - is charged to buyers in England and Northern Ireland when purchasing a residential property or piece of land, that costs more than £125,000, or £300,000 for first-time buyers. This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.

How much is Stamp Duty?

Stamp Duty is calculated based on the value of the home. The table below explains how the rate you pay varies depending on the price of the property.

To help make sense of the price brackets, if you bought a property for £350,000 for example, the Stamp Duty payable would be 0% on the first £125,000, 2% on the second £125,000 (£2,500), and 5% on the final £100,000 (£5,000) – so in total you would pay £7,500.

It is important to keep in mind that a higher rate of stamp duty applies to the purchase of additional properties like buy-to-lets and second homes costing more than £40,000. 

You can use HM Revenue & Customs Stamp Duty calculator to work out how much tax you will need to pay.

What if I’m a first-time buyer?

Following the 2017 Autumn Budget, Stamp Duty has been scrapped for first time buyers in England and Northern Ireland, on properties up to the value of £300,000.

A reduced rate of tax will be applied for properties up to £500,000, where first time buyers will pay 5% tax on the difference.

So, to break it down, this means that if you’re purchasing your first home at a cost of £350,000, the Stamp Duty payable would be 0% on the first £300,000, and 5% on the remaining £50,000 (£2,500) – so in total you would pay just £2,500.

How and when do I pay Stamp Duty?

Stamp Duty must be paid to HMRC within 30 days of taking possession of your new property. In most cases your solicitor or conveyancer should be able to help you with this but if not, you will need to contact HMRC directly to make the payment.

HMRC accept several different payment methods including by phone, online at your bank or building society, at the post office or you can pay by cheque.

If you fail to make payment within 30 days, HMRC may charge you a penalty fee and/or interest.

Are there any exemptions?

You may be eligible for tax relief in certain situations, which can reduce the amount you pay.

For example, Stamp Duty doesn’t apply if you have been left a property in a will or receive it as a gift – however other taxes might apply (such as inheritance tax). You will also be exempt if the property has been transferred to you following a divorce, separation or the end of a civil partnership.

Visit the gov.uk website for the full list of Stamp Duty exemptions.

SCOTLAND

What is Land and Building Transaction Tax?

In Scotland, when you buy a property or a piece of land that costs more than £145,000 you will pay Land and Buildings Transaction Tax (LBTT) instead of Stamp Duty.

How much is land tax in Scotland?

Land tax in Scotland, like in the rest of the UK, is calculated on a percentage basis, however the thresholds are slightly different. The below table sets out the tax percentage you will pay for each price band.

It is important to note that an Additional Dwelling Supplement tax applies to the purchase of buy-to-let properties and second homes of £40,000 or more.

You can work out the amount of LBTT you will need to pay on your next residential property purchase with Revenue Scotland’s tax calculator.

How and when do I pay LBTT?

Your solicitor will usually make the arrangements for your LBTT to be paid, however if they don’t, land tax returns can be submitted using Revenue Scotland's online portal, or manually by completing a paper LBTT form and paying by cheque. Revenue Scotland do not accept payment over the telephone or by cash.

If you fail to make payment within 30 days of taking possession of your new property, you will be charged a penalty fee. Full details of how to make a payment can be found here.

Are there any exemptions?

There are several types of land transactions which are specifically exempt from LBTT or that offer tax relief.

If a piece of land or a building has been gifted, or the ownership transferred to you (like in a will for example) you will not have to pay land tax. You will also be exempt if the property has been transferred to you as a result of divorce, separation or the end of a civil partnership.

Take a look at the Revenue Scotland website for the full list of LBTT exemptions.