Ahead of the October 2024 budget Mason Thomas Law is urging private landlords to get their house in order.
Prime Minister Keir Starmer has already warned that the budget on 30 October will be ‘painful’, particularly when it comes to capital gains tax (CGT).
Currently, the higher rate of CGT on residential property is set at 24%. However, there are growing concerns that this rate could rise sharply to as much as 45% in the October 2024 budget.
If the predicted CGT increase happens, Mason Thomas Law has warned that the property market may be flooded as landlords look to sell ahead of the new tax year (April 2025), putting increased pressure on property solicitors and conveyancers.
Pricing a property to sell can enable it to find a buyer quickly, however delays can occur during the legal process of transferring ownership, known as conveyancing. The conveyancing process typically takes around 12-16 weeks; however it can be done more quickly, particularly if you begin the pre contract work ahead of finding a buyer.
To speed up the conveyancing process, avoid unnecessary delays and beat the end of year tax deadline, Cathy has this advice for landlords looking to sell:
Quality legal advice – Using a solicitor, like Mason Thomas Law, that is a property law specialist, means they will have the relevant technical and legal expertise, depending on whether your property is leasehold, freehold, or listed, that will speed up the conveyancing process.
Forms – Depending on what you are selling, you will be required to complete various forms to provide information about the property (e.g. TA 6, 7, 9, 10, 13, etc.). These forms are sent to the buyer for their review. To ensure it is straightforward for your solicitor, complete these forms promptly, truthfully and to the best of your knowledge.
Communication – Ensure you and your solicitor are easily contactable throughout the conveyancing process. If there are any questions or issues they need to be addressed immediately.
Sales pack – Don’t wait until you have a buyer to prepare your sales pack. Ensure you have all the relevant title documents relating to your property, planning and building control approvals, construction warranties and guarantees and certificates as well as the draft contract are ready as soon as possible after putting the property on the market. If you are selling a flat, order the management pack (containing the service charge and building management information). Your solicitor will advise you which legal documents are required for a buyer to proceed with the purchase.
Searches – Consider ordering the property searches in advance so that you can provide the results as part of your sales pack. Search results are typically valid from the buyer’s perspective for up to six months. You can also seek to recover the cost of these from your buyer on completion of the sale.
Survey – If your buyer is obtaining a survey of the property ensure that the surveyor is given access as quickly as possible and that the turnaround for their report is within the agreed timeframe for exchange. Most surveyors are willing to provide a verbal “red flag” report within 24 hours with a full written report to follow within three to five days.
If you’re a landlord looking to sell a rental property and would like to access specialist legal advice from an award-winning firm, speak to Mason Thomas Law.
Registered by the Council for Licensed Conveyancer (CLC), Mason Thomas Laws specialises in commercial property law, providing legal support for leases and purchases locally and nationally.
Call us on 0114 294 5360 or contact us here to find out how we can help you.