Good news for Welsh homebuyers as the popular Help to Buy -Wales scheme has now been extended until March 2022, with the possibility of a further extension until March 2023. The popular scheme, which was due to close to applicants on 31 March 2021, has seen over 10,000 new homes bought with the assistance of Help to Buy - Wales since it was first launched in 2014. The Welsg Government also announced that the third phase of the scheme will see soe changes introduced. From April 2021 there will be a reduction of the price cap from £300,000 to £250,000 as well as improved quality with all homes being broadband ready. The Welsh Government Minister for Housing and Local Government said: "Ensuring everyone in Wales has access to a good quality, safe and affordable home is this government’s ambition. I am pleased to announce our intention to extend Help to Buy Wales until March 2023, subject to the availability of funding beyond 2020-21 from the UK Government." "I have said I am committed to providing affordable housing and should funding not be provided by the UK Government, than Welsh Government will commit to funding phase three of Help to Buy Wales for at least a further twelve months, until March 2022." "I want to ensure support is available to all those who need it when making the most significant purchase of their lifetime and allow developers to plan for their future. We will continue to work with developers and all stakeholders over the coming months to ensure homes purchased using Help to Buy are not just of good quality but are broadband ready to allow home owners to have instant access to essential services." The scheme is currently available on new homes for sale up to value of £300,000 at our The Hedgerows development in Pennard. For further information on how the scheme could help you purchase your new home and for criteria and eligibility, please visit https://gov.wales/help-buy-wales
What is Land Transaction Tax (LTT)? Since April 2018, those who purchase properties in Wales have been required to pay LTT on the completion of their property purchase. Prior to April 2018, purchasers would have been required to pay a Stamp Duty charge on completion of their purchase. Tax rates are calculated on the price and type of property (e.g residential or non-residential property). What are the changes? The changes relate to the current tax band thresholds. At present, all residential properties that are purchased for less than £180,000 are exempt from paying any charges, however from 27th July 2020 the threshold for exempt residential properties has now been raised to £250,000 meaning that those bought for less than this amount will also be exempt from paying LTT. The table below displays the current tax amounts and the upcoming changes. RESIDENTIAL PROPERTIES – LTT (On purchases up until 27th July 2020) (For purchases from 27th July 2020 – 31 March 2021) Price threshold LTT Rate LTT Rate Up to £180,000 0% 0% £180,001 – £250,000 3.5% 0% £250,001 – £400,000 5% 5% £400,001 – £750,000 7.5% 7.5% £750,001 – £1,500,000 10% 10% Over £1,500,000 12% 12% What about buy-to-let and second home purchases? The changes only apply to properties being bought as main residential homes. No changes have been made to buy-to-let and second home purchases. I’m interested in purchasing a property between £180,001 to £250,000, how much would I save if the purchase completed before the end of March 2021? As an example, let’s take a look at one of our current properties for sale at our development, The Hedgerows in Pennard, Swansea. Housetype Price Current LTT Rate (up to 27th July 2020) Future LTT Rate (from 27th July 2020) The 2-Bedroom Pwll Du £235,000 £1,950 £0 = Saving of £1,950!* The 2-bedroom 'Pwll Du' at The Hedgerows, Pennard I’m interested in purchasing a property over the value of £250,000, will I save any money on LTT if the purchase completes before the end of March 2021? Yes! LTT is calculated on each tax threshold band so there are still big savings to made even if the property you are purchasing is more than £250,000. Let’s use one of our homes for sale at Colman Vale, Pen y Fai, as an example: HOUSE TYPE PRICE CURRENT LLT RATE (UP TO 27TH JULY 2020) FUTURE LLT RATE (UP TO 27TH JULY 2020) [...]
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