Big stamp duty savings for equity loan buyers
NEW stamp duty rules are great cash-saving news for homebuyers
who snap up one of our affordable new equity loan
apartments or houses in the heart of the Cotswolds.
Homebuyers will now save £650* on stamp duty − compared to
the old rates − when buying a three-bed Sherbourne house at Woodlands, Northleach, near
And the stamp duty bill is more than halved from £1,620 down to
£740 − saving £880** − if buying a two-bed equity loan
apartment at Akeman Court, Cirencester
Bromford Homes Head of Sales Alan Bradley welcomes the
Chancellor's reform, which came into force at the start of
December, creating a set of rising charge bands that make stamp
duty much more like income tax.
"It's a much fairer way of charging buyers on what is almost
certainly the biggest purchase they will ever make − and the
savings are very welcome news indeed for first-time buyers in
general," says Alan.
"Under the old system, if you bought a home for less than
£125,000 you paid no stamp duty − and that was fine. But if
you paid, say, £130,000 for your home, you had to pay 1% stamp duty
on the whole amount − or £1,300.
"Under the new system, there will be no tax at all on the first
£125,000 of a property's price. Between £125,000 and £250,000, 2%
will be charged and between £250,000 and £925,000, the charge is
"That means someone buying the same £130,000 home will be
charged 2% stamp duty but only on the additional £5,000 over the
£125,000 threshold. That's just £100 rather than £1,300
"The Chancellor says 98% of all homebuyers will be better off
under the new system − and that's certainly true for anyone
who buys one of our affordable equity loan homes at two new
developments in the heart of the Cotswolds.
"We calculate that an average Bromford buyer here will be better
off by about £650* − and that's on top of the tremendous equity loan deal that enables them
to own 100% of their new home with just 5% deposit and a 75%
mortgage. It's a real win-win prospect for anyone in the Cotswold
district who wants to start the new year with a new home."
* Stamp duty is calculated on the total purchase value of your
equity loan home, including the 20% no-interest loan. Our example -
a 3-bed Sherbourne (pictured above) house − costs the buyer
£148,000, or 80% of the full market value, £185,000. Under the old
stamp duty rules, the buyer would pay 1% duty or £1,850 on the full
value. Under the new rules, the first £125,000 is duty-free and you
pay £1,200 (2% on £60,000) − a saving of £650.
** Stamp duty is calculated on the total purchase value of your
equity loan home, including the 20% no-interest loan. Our
example − a 2-bed apartment at Akeman Court − costs the
buyer from £129,600, or 80% of the full market value, £162,000.
Under the old stamp duty rules, the buyer would pay 1% duty or
£1,620 on the full value. Under the new rules, the first £125,000
is duty-free and you pay £740 (2% on £37,000) − a saving of
The stamp duty reforms are explained in a useful BBC News guide and there's more information at
14 January 2015