Buy now or wait till after budget - stamp duty might be reduced

Hi all,
We are hoping to purchase a house and have just agreed a price with the vendors. We are very eager to move in as soon as possible for many reasons but the impending budget and all talk of potentialy reduced Stamp Duty puts us in a dilemma.

1) Is the Budget most likely to be on the first week of December?

2) I heard that you have up to a month to pay SD before paying penalties. If the house purchase is finalised in November and the SD rates change in December, is the amount due based off the date that the contracts were signed?

Is there anything we can do get in as soon as possible and yet pay the stamp duty rates announced at the budget. I am also very aware that there may be no change to the rates.

Thanks.

Re: Buy now or wait till after budget

Tough one as nobody knows what will happen in the budget, but there are stirrings that there might be some change in SD. Yes, I think the budget will be in early Dec.

Hi Herb

It is unlikely that Stamp Duty will be increased, so you could exchange contracts now and leave closing until after the Budget. You will need the vendors' agreement.

Brendan

I would go with what Brendan says. I am sure the vendors will be obliging as they won't want to lose the sale.

December isn't really "impending". I don't think many vendors would be happy, or smart, to agree to such a long closing period (16 weeks+).

What happens if there are changes or the market falls further? You could walk away from the deal and then where would they be? Presumably they are selling in order to buy somewhere else themselves, where does such a long closing period leave them?

If you're convinced stamp duty will be abolished then take that amount off your offer and close today.

Thanks all, that makes sense to have everything completed except for the Closing. I suppose we can hope that it might be leaked to the papers in advance.

Howitzer, when I asked the estate agent how long it would take he said that he'd be very surprised if it was all completed within 3 months. December 1st is in 14 weeks and if the market falls further then surely they will be in an even stronger position as their sell price is already guaranteed and they will have more scope with their purchase price ?

You may eventually end up paying both stamp duty and property tax.