14:49 PM, 7th November 2024, About 4 hours ago
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It seems it’s one step forward, two steps back for landlords with the recent Budget introducing significant changes to Stamp Duty Land Tax (SDLT) that will impact property transactions from April 2025.
The changes have caused panic amongst landlords, with a spike in numbers looking to sell before Christmas.
Currently, the SDLT threshold is £250,000 for all buyers and £425,000 for first-time buyers. However, from the 1st April 2025, these thresholds will revert to their previous levels of £125,000 for standard residential purchases and £300,000 for first-time buyers.
What does this mean? For landlords, this change means that selling properties after March 2025 could become more costly. A lot more costly. The higher SDLT rates for additional properties are set to increase from 3% to 5% above the standard residential rates. This increase may lead to reduced sale prices, as buyers factor in the higher tax liability.
Additionally, recent changes have made tenant evictions ever more challenging, limiting landlords’ options when selling occupied properties. Landlord-to-landlord sales is one solution, as the new owner can inherit the existing tenancy, however, the impending SDLT increase adds urgency to these transactions. Put bluntly, if you were a landlord contemplating selling, or are in any financial distress, now’s the time to act.
Specifically, landlords considering selling their properties should act before April 2025 to avoid higher SDLT rates and potential reductions in sale prices. With completion times to factor in, it’s no surprise that landlords are rushing to Landlord Sales Agency to start the process now.
By selling now, landlords can benefit from the current tax thresholds and a more favourable market environment.
Whilst there are many options to selling your buy-to-let portfolios and properties, time is of the essence, and has never been a more relevant factor than now. This week, we spoke to 100 landlords who wanted to sell, and fast. It’s what our team at Landlord Sales Agency do best.
All our properties on average sell in just 28 days, regardless of whether they’re vacant or with tenants still in situ.
The way we achieve this is simple. Our sales team is made up of the top portfolio exit specialists in the UK, who are experts in overcoming all problems and obstacles to get properties sold. No matter where the properties are, and no matter what the condition, we have the resources to take them over the line, fast.
We market to first time buyers, new landlords with fresh funds, private buyers, private buying companies and our own personal database of over 30,000 buyers. We have strong relationships with companies throughout these sectors, plus with the very best local agents throughout the country, who work with us to ensure we get your properties sold for the best possible price.
What’s more, our entire network is text directly to their phones with a link to bid the minute we take on your properties to sell. This creates a bidding war, driving up the prices of your buy-to-lets so landlords walk away happy.
We also know how to manage tenant relationships so that it’s a win-win for both tenants and landlords. For great tenants, we can re-negotiate rents for you to ensure the properties sell with existing tenants, alternatively we work with the Council to help relocate tenants.
For properties in dire need of repairs, we have teams of builders who are able to take on that work, depending on the property. We’re so confident we’ll be able to sell fast and for the best price, we’ll simply recoup the costs on the other side of the sale. No problem.
For Shirley, a Property118 landlord who contacted us looking to sell, we delivered exactly that. We were able to drive up prices in a bidding war to get her the best possible deals.
“It worked very smoothly. You found me a buyer really quickly who was a landlord of some 20 years’ experience. You managed to get a deal together for us. Of course, in selling in that way, I had to take a little bit of a cut and that was fine by me because it meant that I wasn’t paying mortgages for 18 months while I was waiting for properties to sell with tenants scared away.”
It also meant that Shirley was able to get the highest prices before the Stamp Duty Land Tax increase. She walked away with all tenants happy, and the amount she was happy with.
So if you’re a landlord thinking about selling, it goes without saying that the time to sell is now. We’re the best in the business to do it, and we’re delivering for landlords every single week.
Get in touch, and let’s get it done for you, cash in the bank, so you can relax in time for Christmas and get ready to put your investments in better sectors when 2025 rolls around.
