With the government’s Stamp Duty increase looming on April 1st, property investors have been rushing to finalise purchases on buy-to-let properties before property purchases become liable for an additional 3% in tax.
If you’ve been looking for a good location for your buy-to-let, then Wimbledon, with its attractive “London village” vibe and great transport links (18 minutes to Waterloo) should be high up on your list. But, if you want to complete before the deadline hits, you’ll have to move quickly.
Stamp Duty Land Tax (SDLT) is the levy you pay to the government when buying a freehold, leasehold or shared ownership residential property in England, Northern Ireland and Wales (Scotland has its own tax). Under the current pricing structure, introduced in 2014, any buyer who pays less than £125,000 for their property will pay no duty, while on homes between £125k and £250k they will pay just 2%. The percentage then rises progressively, to 5% between £250k and £925k, 10% between £925 and £1.5m and 12% for £1.5m+.
On 1st April 2016, however, an extra 3% will be added to each band. A buy-to-let purchase costing £450,000 currently attracts £12,500 in Stamp Duty, but after April this will increase to a whopping £26,000: hence the urgency amongst buyers to complete before the new rules are introduced.
If you are hoping to buy a London rental property, then Wimbledon is a sound choice. It’s one of the most popular residential areas in London, attracting families as well as affluent single professionals. Wimbledon has a great range of shops and restaurants – from major high street brands to quirky independents – and the area is blessed with excellent private and state schools. Wimbledon Common, offering 1,000 acres of green space, is also a big attraction for those who want to enjoy the benefits of both town and country living.
Buy-to-let landlords investing in Wimbledon can expect fewer void periods and more long-term tenancies provided they can obtain an accurate rental property valuation on their house or apartment. Pitch the rent too high and tenants will go elsewhere. Pitch it too low and you’ll lose out, particularly when it comes to paying out on repairs and routine maintenance.
When you are letting Wimbledon property you’ll discover that the services of a good local lettings agency can relieve much of the hassle involved in renting your property. At Winchester White we will take you through every stage of the process, from property valuation to managing your tenancies. Our comprehensive knowledge of the Wimbledon area means we can offer pinpoint-accurate valuations that help you achieve the very best market price. Our clients include high-calibre corporate tenants looking for both long and short lets.
Once your tenant is in place, we can provide a round-the-clock management service to give you complete peace of mind. We can also offer advice on Wimbledon lettings - explaining exactly what tenants want from a rental property - so call our Wimbledon office today for an informal chat with one of our expert lettings specialists.