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How to Buy a House with a Small Deposit

With house prices higher than ever before — and beyond the means of many — the deposit needed to buy your own home is significant. If you shop around, however, there’s a good chance you’ll find a decent mortgage that requires just a 5% deposit.

If you’re short of cash, there are ways to reduce the deposit required even further. If you need to know how to buy a house with a small deposit, read on.

Choose a guarantor mortgage

Mortgage providers are often willing to accept a greatly reduced deposit for a mortgage guaranteed by a parent or close relative. In the event you fall behind with your repayments, the lender can pursue the guarantor for the arrears.

This is a good idea if your parents have collateral, a good credit score and the means to pay your mortgage should something go wrong. But you need to trust the person. And your relationship should be strong enough to withstand the fallout caused by falling into arrears.

Buy your house at auction

Buy a house with a small deposit

Buying a house the traditional way usually means you end up paying the market price (or something close to it). And because market prices are higher than ever, even a 5% deposit is well beyond the reach of people on a modest income.

But buying a house at auction allows you to avoid some of the legal and administrative costs involved. And don’t forget: there are some great bargains to be found at property auctions — the lower the final sale price, the lower the deposit.

Shared ownership

Shared ownership is one answer to soaring house prices in the UK. It allows people to get on the property ladder when they don’t have the income or deposit to get a mortgage on their own.

In most cases, ownership is shared between the buyer and either the developer or a local authority. You pay your mortgage as normal, but you also pay rent on the proportion of the property you don’t own.

Buying a property this way gives you anything between 25% and 75% ownership. If you’re only buying, say, 50% of the property, you only have to find 50% of the deposit.

A bridging loan

Buy a house with a small deposit

If you’re about to buy a property, the chances are you have a limited pot of cash to cover all your initial expenses and outgoings. A bridging loan doesn’t lower the deposit you need to pay, but it does help you to cover buying expenses for a limited period.

For example, imagine you’re trying to sell a property and buy a new one at the same time. To help you cover all the associated costs — and pay a deposit — you take out a small bridging loan. Once your house sells, you pay the loan back in full.

But a word of caution, bridging loans can be expensive. They should only ever be taken out for a few weeks or months. Once you’ve sold your home, use some of the proceeds to repay the loan immediately. Doing so helps you to pay a hefty deposit while keeping money back for fees and expenses.

Selling a house fast is often essential if you need to raise a significant deposit for a new property. Sell Property Fast Cash can help in that regard. We buy houses directly from owners — without the need to market your home or waste time on price negotiations. As a result, we might be able to complete the purchase of your home within just a few days.

Should I Rent or Buy Property?

You’ve probably heard people say that renting a home is like throwing money down the drain. While buying a house is often the sensible economic decision, it’s not always the most practical.

There are benefits and drawbacks to buying your own home. Consider them all before deciding which option is best for you. ‘Should I rent or buy a property?’ is a very complex question, and it deserves a lot of thought.

The benefits of buying a home


You don’t truly own your own home until you’ve paid off your mortgage. But once you have, the property is yours to do with as you wish.

Something to bequeath

A lot of parents take great pride in being able to bequeath a home to their children. The sooner you buy, the sooner your children can benefit.

Generate equity

While there are fluctuations, property prices in the UK are generally on an upward curve. If you’re in this for the long run, a rise in local house prices could leave you with a lot of equity. And you can use this equity to fund other purchases, lifestyle decisions or home improvements.

No one to answer to

When you rent a home, you always have to ask the landlord’s permission before you make home improvements. And even then the answer could be no. When you buy, however, you can pretty much do what you like — unless the work involves major structural changes.

It’s often cheaper

Rental homes in the UK have never been so expensive. The rise of the buy-to-let-mortgage and a chronic shortage of housing has driven rents up significantly in recent years. But when you buy, the only intermediary is the lender. And that’s why owning is usually cheaper than renting your home.

Rent or buy property?

The drawbacks of buying a home

A big financial commitment

Buying a home is a long-term commitment that must be taken seriously. If you don’t keep up with repayments, you could lose your home — and any chance of obtaining credit in the near future.


Fixed price mortgages only last for a few years, after which time repayments can fluctuate in accordance with interest rates. This might complicate some of your long-term lifestyle plans.

Moving might be tricky

If you rent your home, moving doesn’t entail too many complications. Give notice to your landlord, and make plans for the future. Even if you have to wait for your lease to expire, there’s certainty in the process.

But when you own a home, you’re at the mercy of outside forces. There are no guarantees if you need to sell a house fast to fund your next move. Your plans for the future could be determined by the state of the property market at the time. But there are other options, including Sell Property Fast Cash if you need a quick house sale. This national homebuyer purchases property without the need for marketing and negotiating.

Moving home

Maintenance costs

When you rent a home, you don’t have to worry about your boiler breaking down. Big repair jobs are the responsibility of the owner.

Splitting up complicates the issue

If you live with someone, owning a home can become a real headache if the relationship breaks down. Selling a house and dividing the proceeds can be a complex legal issue, but it’s no issue at all if you’re renting (although you’ll both be responsible for rent payments until the end of the lease).

Negative equity

If property prices fall, you might find that you owe more on your home than it’s worth. If you can afford to keep up with repayments in the medium term, this shouldn’t be a major issue. But if you need to sell up and move, negative equity could trap you in your property until house prices recover.

Buying a home is a big step in life. But the pride, security and comfort it delivers are why so many people choose to buy a property of their own.

All about buying a 2nd home

More people in the UK own a second home than ever before. In most cases, the second property is an investment opportunity — rented out for an additional income. But some are inherited, and some are bought as a holiday home away from urban sprawl.

If you’re thinking about buying a second home, there are a few issues you should consider before taking the plunge.

Why do I want to buy a second property?

Most people buy a second home as a buy-to-let opportunity. The property earns the owner a steady second income — while appreciating. You may want to buy a small holiday cottage for weekends, or somewhere you and your family can holiday. Some people buy a property with a view to cashing in on it in the future.

Think about your reasons for buying a second home. This should help you decide on the type of property you want.

buying a second home — a cottage

How much will buying a second home cost?

Most second homes are smaller and cheaper than the owner’s principal property. While the cost of buying it might be lower, there are tax implications you need to know about before proceeding.

A second home is referred to as a ‘secondary residence’ by HMRC. Any income you make will be assessed for Income Tax. And if you sell your home for a profit, you’ll be liable for Capital Gains Tax.

There’s also Stamp Duty to consider. Unlike buying your first home, there is no tax-free value on a secondary residence. You not only pay Stamp Duty on the full sale price, but you also pay it at a higher rate.

Can I let my second property?

Not everyone intends to let out their second home at first. Some people inherit property, while others decide running two homes at the same time is unaffordable. This is why you need to know where you stand in terms of the rental market.

The first thing you should do is check with your lender. A lot of mortgages don’t allow letting. You might need to remortgage in order to let out your second home. Even if you decide to move into the second home and let out your primary residence, you’d need to inform the mortgage provider and switch to a buy-to-let loan.

house to let

Do I have time for property management?

As the owner of a rental property, you have some serious responsibilities. You have to make sure your home is safe and habitable. You also have to abide by all the various letting laws in the UK. This all requires managing — as well as time and money. You can leave the day to day management of your rental property to a property company, but this will eat into your income.

Can I develop my second property?

If you have spare cash, you might want to improve and renovate your second property. If you know what you’re doing, you can increase the market value of your home by far more than the cost of renovation.

If the local property market is buoyant, and you’re OK with a little DIY, this might be a good idea. But when demand is even slightly depressed, the risks of property development increase markedly.

Can I use it as a holiday home?

You can use your second property as a holiday home. However, you’ll need to pay Council Tax. You’ll also need to consider the costs of running and maintaining the property. A lot of owners rent out their holiday home for a few weeks each year. This is allowed by most standard mortgages.

If you need to sell a second home fast or raise the money for purchasing one, Sell Property Fast Cash can help. We work with various partners to buy properties quickly and without fuss. In the right circumstances, we can buy a home in just seven days.

Can I avoid gazumping?

Gazumping is when a house seller accepts a higher offer after they have accepted an offer from another buyer. The original buyer is left “gazumped”, often after paying for surveys, searches and legal work.

The phenomenon became popular during the 1980s. And although it’s in decline in England and Wales, it’s still a problem. According to, a quarter of the people who bought a home in 2018 were gazumped. The previous year, more than a quarter of would-be buyers befell the same fate.

While legislation might solve the problem in the future, there are a few things you can do to avoid being gazumped.

Organise your finances

The best way to avoid being gazumped is to get your finances and legal issues organised in advance. If you can minimise the time between agreeing on a sale and the exchange of contracts, the chances of being gazumped reduce dramatically.

Avoid being gazumped — sort out your finances

The measures you can take to avoid gazumping include:

  • Secure your mortgage “agreement in principle” before you make an offer
  • Appoint a solicitor or conveyancer
  • Make sure you have all the relevant ID and paperwork ready
  • Get your property on the market early
  • Price your property for a reasonably quick sale
  • Where possible, wait until an offer is made on your home before you put in your offer

Insist that the property is taken off the market

As soon as your offer is accepted, stress that it’s on the proviso that the property is taken off the market immediately. And get this in writing. This should give you some legal protection if the seller accepts a higher offer at the last minute.

Ask for the “For Sale” signs to be removed, along with property listings in shops, local publications and the Internet. But remember: the seller doesn’t have to do any of this. If they refuse, proceed with caution.

Keep the process moving swiftly

It’s vitally important that you’re always available to answer questions and sign paperwork. Any delays can increase the chances of being gazumped before contracts are exchanged. Stay in regular contact with your solicitor and mortgage lender. They won’t be as keen to protect your interests as you are.

Strike up a rapport with the sellers

There’s always the chance the homeowner will suddenly accept a significantly higher offer. And, right now, there isn’t much you can do about it. But if you’re on first-name terms with the owners, they’re more likely to regard you as people rather than faceless buyers. Offer a hand of friendship. Strike up a few conversations. Above all, make friends with them.

Get insurance

While you might be confident of the deal going through, you should never take chances. Buying a house costs several hundred — sometimes thousand — pounds. If you get gazumped, you stand to lose almost everything you’ve spent until that point.

Just in case the worst happens, take out specialist home buyers protection insurance. This will cover your loss of upfront expenses, which include mortgage costs, surveys and conveyancing fees.

Buy at auction

Avoid being gazumped — sell at auction

If money or time is tight, consider buying your next home at auction. While this route presents its risks, gazumping isn’t one of them. Once your offer is accepted, you sign the initial paperwork and pay the deposit almost immediately.

Sell your home to a national homebuyer

A delay in the sale of your house increases the risk of being gazumped. To speed up the process, sell your property to a national homebuyer such as Sell Property Fast Cash. This negates the need for marketing, negotiations and protracted conveyancing processes. You’ll get up to 100 per cent of your home’s market value, and the quick sale you need to minimise the chances of being gazumped on your next purchase.

6 Common Mistakes Made by First-Time House Buyers

The mistakes made by first-time buyers are too numerous to mention in a single article. House buying is a minefield, and it’s normal to make a few mistakes along the way. But knowing what those mistakes are before you buy your first property should help you to secure the home of your dreams without too much stress and hassle.

The main aim is to find a suitable house in a desirable area for a great price. This challenge might sound easy, but it rarely is. And if you don’t have prior experience, you might be in for a tough time.

But worry not! We’re here to help you navigate your first home buying experience. Avoid the following mistakes, and you shouldn’t run into too many difficulties.

1. Not checking your credit score

You can save yourself an awful lot of time by checking your credit score before you start looking for mortgages. The last thing you want is to put yourself through an application process you can never complete. And if you know that your credit score is less than perfect, you can limit your search for mortgages that cater to situations like yours.

2. Not identifying your priorities

Among the most common mistakes made by first-time house buyers is a failure to identify property priorities from the outset. If you simply start bidding on homes you like, you may end up making a huge mistake. Consider the following questions:

  • Do you need to live near your place of work?
  • Do you need good transport links nearby?
  • Do you want a big garden?
  • Do you prefer open-plan living?
  • Do you need off-street parking?
  • How many bedrooms do you need?
  • What’s your budget for renovations?

Get these priorities clear in your mind, and you can fine-tune your property search for success.

3. Not getting your mortgage arranged first

How do you know you’ll get the mortgage you’ll need if you haven’t been approved? Save yourself a lot of time and heartache by getting pre-approved before you start putting in bids. This way, you’ll know exactly how much you can spend. Whittle your prospective homes down according to your budget, and you won’t be left embarrassed further down the line.

4. Aiming for the very top of your house buying budget

So, you got a surprisingly high mortgage offer that expanded your options significantly. Don’t make the mistake of looking for houses at the very top of your range. Judge houses by their merits rather than their price-tag. And don’t forget that there are plenty of hidden costs involved in buying a home. Once stamp duty, fees and legal costs are factored in, the cost of buying your first home could be way higher than you bargained for.

5. Buying with your heart

Of course, there’s always going to be an emotional aspect to buying a first home. After all, this is going to be your refuge from the outside world for quite some time. But don’t get overly attached to any particular house during your search. Try to take an objective approach to property buying. Is it big enough? Can you afford the repairs and renovations? What’s the school like?

While your preferred home might look how you imagined it, there’s far more to consider. Be practical and pragmatic. If it’s not going to serve your needs on a day-to-day basis, move on to the next option.

6. Not getting a survey

House surveys are crucial for first-time house buyers

Understandably, you want to get into your new home as quickly as possible. But failing to carry out the necessary structural checks could backfire spectacularly. Once the house becomes yours, any defects become your responsibility. And that can be a very expensive mistake.

If you’re getting a significant mortgage, the chances are your lender will insist on a comprehensive survey. This will look for everything from damp in the walls to movement in the foundations. But if you don’t need a large mortgage, you may have the option of saving a few pounds by skipping the survey. This is a huge risk, and it’s just not worth taking.

Buying your first home should be fun and exciting. But don’t get too carried away with the romance of it all. Proceeding with caution maximises your chances of a successful first purchase.

For more information on how can help you sell your house fast please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

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9 Things You Need to Know About Saving for a House Deposit

Since the housing crisis of 2018, banks have imposed a range of tighter restrictions on mortgage applications. The days of the zero per cent mortgage are long gone.

You’ll need a minimum of a five per cent deposit. And because house prices are at record levels, you’ll need several thousand pounds to be considered for a home loan.

Getting that kind of money together isn’t easy. It requires hard work, organisation and a lot of sacrifices.

To help you on the house buying path, we’ve put together 10 top savings tips for saving for a house deposit.

1. Cut back on your spending

To save tens of thousands of pounds, you’re going to need to stop the more frivolous aspects of your spending. Stop buying those morning coffees, and cut back on your trips to the local restaurant. Go through your bank statements, and look for opportunities to save money. The more frugal you are, the faster you’ll get your deposit together.

2. Open a savings account

Don’t leave the money you’ve saved sitting in your current account. You’ll always be tempted to spend it on frivolous things. Open a savings account, and transfer your spare cash into it as regularly as you can. And make sure you get a good rate of interest and tax-free savings with an ISA.

3. Set yourself goals

Saving for a house deposit

Set yourself monthly savings goals. Start a diary and set a realistic goal every month. But take into account any significant spending commitments you can’t avoid. By splitting your savings target into manageable chunks, you won’t lose heart when progress is slow.

4. Sell unwanted items

Go through all your possessions and set aside anything that you don’t need or want. Hit the local car boot sale to sell your cheaper, everyday items. If you have expensive items worth selling, list them on eBay or at local auctions. If you have a car to sell, list it on a car selling site, on Facebook or in the local newspaper.

5. Downsize your home

Renting a home in the UK is more expensive than ever. If you’re prepared to live in a smaller home or a less popular area, you might be able to save a lot of money every month. Downsize your rented house, and transfer the money you save every month into your savings account.

6. Create a spending budget

Don’t leave anything to chance. Create a monthly spending budget that includes all your essential outgoings. And be realistic. For example, never spending money on leisure activities and treats isn’t sustainable. Make space in your budget for these things.

7. Set up a standing order

Saving for a house deposit

Don’t let your bad memory get in the way of saving for a house deposit. Set up a standing order with your bank, so the money is transferred automatically every few weeks. Set the payment date to your payday, so the money leaves your current account before you can spend it.

8. Find an additional income

The quickest way to save a house deposit often involves increasing your income. Whether you ask for overtime at work, take in a lodger or find a second job, every little helps. Just make sure the extra money you make all goes into your savings.

9. Ask your parents

Buying a home in the UK is harder than ever for first-timers. House prices are higher than ever. And the average income precludes a lot of people from getting on the property ladder in their area. But asking the bank of mum and dad for help could be the answer. Whether this involves dipping into savings or an early inheritance, a gift or loan from a loved one can get you on the housing ladder fast.

If you’re disciplined and determined, there’s no reason why you can’t save for a house deposit in just a year or two.

For more information on how can help you sell your house fast please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

We Buy Any Home

Should I Buy a New-Build Home?

The population in the UK is rising fast. So much so, there’s a real housing crisis that is making life a misery for families up and down the country. According to Crisis, we need another four million homes just to keep up with demand.

In many areas of the country, your best chance of getting on the property ladder involves the purchase of a new-build home. But a modern property isn’t for everyone. If you’re not sure, consider the various pros and cons involved in buying a property directly from a builder.

The pros of buying new-build homes

You choose what your home looks like

If you’re involved in the building project from day one, there’s a good chance you’ll be able to choose a range of features and fittings. You may get to choose paint colours, kitchen cupboards, tiles, taps, light fixtures and a lot more besides.

In most cases, a new-build home is delivered to its new owner with the bare minimum of decorative features. This means you have a blank canvas on which you can express yourself. When you buy an older property, this isn’t always the case.

There are usually fewer issues to deal with

New-build home snagging

When you buy a new-build home, you can be fairly sure that it’s ready to move into. You don’t have to worry about things breaking down or failing shortly after you move in. And even if there are problems, your builder is legally responsible for putting them right.

And it’s not just structural issues you don’t have to worry about. Buying from a developer means you don’t have to worry about the upward property chain collapsing.

There’s often help

You’re much more likely to get help from the government to buy your home if you’re dealing with a major developer. The likes of Help to Buy and Start Homes Initiative can make getting on the property ladder a lot easier — and cheaper. Schemes such as these are often developed in conjunction with national house builders, so the entire buying process is simple and accessible.

Homes are built to modern standards

Building and environmental standards change fast these days. You can now be certain that a new-build house complies with all the various energy-efficiency and building guidelines. This isn’t always the case with older homes. An energy-efficient home is usually easier to sell than older properties. And such a home can drastically reduce your energy bills.

The cons of buying new-build homes

They’re often more expensive

New-build homes

Buying a new home from the builder gives you a property that’s ready to move into. You won’t need to do any repairs or improvements, and that’s something you might have to pay a premium for.

There are often better bargains to be found if you’re prepared to move into an older home. Yes, you might have a lot of work on your hands, but the price you pay is significantly lower than it is for the average new-build.

There’s an element of the unknown involved

New-build homes are being snapped up very quickly these days. And in some cases, they’re being bought before ground has been broken. To make sure you don’t miss out on the new-build of your dreams, you’ll have to sign a contract and pay a deposit before you’ve seen your new home. And that’s always slightly risky. While your prospective new home might look great in a brochure, you can never be sure until you’re looking at bricks and mortar.

New-build homes often suffer from niggling issues

Not all new-build homes are delivered to their new owners in perfect working condition. In fact, there are often teething problems during the first few months. It’s not unusual for builders to be working on snagging lists long after a property changes hands. Issues such as cracking walls, movement, faulty plumbing and damp do arise from time to time. If you’re buying an older home, a survey will identify such issues before you commit.

Most people are very happy with their new-build home — even if there are a few teething problems at first. But it’s always best to be aware of the worst-case scenarios before you take the plunge.

For more information on how can help you sell your house fast please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

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Getting on the Property Ladder: A First-Time Buyer’s Guide

The UK housing market is still in rude health, but raising finance is still difficult for first-time buyers. The days of the 100 per cent mortgage are long gone. If you’re a first-time buyer trying to get on the property ladder, you need a good credit rating and a hefty deposit.

Buying your own home for the first time is a minefield. You may have to jump through hoops to raise the finance you need. That’s why we’ve put together a brief list of tips for getting on the property ladder.

Consider shared ownership

Mainstream banks and mortgage providers now lend between three and five times the applicants’ annual salary. If the home of your dreams requires more than this, the chances of securing an approval are low.

But you can tip the balance in your favour by looking for homes that offer shared ownership. You get to buy a share in the property (typically 25 to 75 per cent). The rest of the house is owned by the developer or a housing association.

Shared ownership drastically reduces the mortgage and deposit you need. But it’s not without its drawbacks. You may be required to pay rent on the share you don’t own. And you must have permission to make any significant changes to the property.

The UK Government runs three schemes under the Help to Buy initiative: Shared Ownership, Equity Loan and a specialist ISA. Check out the website for more details or talk to a financial advisor who specialises in property.

In most cases, you’ll get the option of buying the rest of the property at a later date.

Team up with someone you know

Getting on the property ladder

There’s nothing stopping you from buying a home with someone other than your partner. For example, if you and your best friend want to buy together, you can apply for your mortgage together. This means you only need to find half the deposit. And you can combine your salaries to increase your budget.

Find a guarantor

A few mortgage providers will allow you to assign a guarantor to your mortgage agreement. This usually has to be a close relative, however. The person you choose must demonstrate that they are in a position to make the repayments if you fall behind. As soon as you miss a payment or two, the institution will chase the guarantor for the arrears.

A guarantor will usually need to provide collateral in the form of their own property. However, other forms of collateral are sometimes accepted.

By finding a guarantor with the necessary assets and a good credit history, you may be able to apply for a larger mortgage. And the lender may consider accepting a far lower deposit. Being a guarantor is a good way for parents to help their children onto the housing ladder without handing over huge sums of money.

Don’t pull the trigger until you’re ready

Getting on the property ladder

Being in a hurry to move into your first home is understandable. But moving too early can end up costing you money and unnecessary stress. Don’t buy your first home until you are financially stable.

If you have to move into your parents’ home while you save your deposit, so be it. Paying rent to a landlord means you’re paying off their mortgage instead of your own.

Before you sign on the dotted line with your mortgage provider, crunch the numbers as many times as you can. Will you have enough money after paying your mortgage to live your life? And what happens if you suddenly lose your job? Do you have a financial buffer or contingency plan?

Buying a first home is a big step. This milestone event often happens at a time in our life when we haven’t yet reached our financial peak. While things might be tight, make sure they’re not dangerously so. If you lose your home to repossession early in life, getting back on the property ladder later might be almost impossible.

If your first-time house purchase didn’t go to plan, we can help you move on fast. We buy houses for up to 100 per cent of their value. This means you can raise the funds you need for debt repayments, your next purchase or to avoid repossession. In many cases, we’re able to complete the purchase of a home within just four weeks.

For more information on how can help you sell a house fast please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

I Want To Sell My House Fast

Everything You Need to Know About Buying a Second Home

Whether you’re looking for somewhere to enjoy holidays or an investment opportunity, buying a second home requires financial planning and a thorough understanding of the process.

We’ve researched the process to help you navigate what can be a complex house buying journey.

Securing finance for your second home

If you have the cash to buy your second home, the process is straightforward. Simply make an offer. And when all the legal paperwork is in place, transfer the cash.

But what happens when you need to raise finance to buy your second home? If you already have a mortgage for your primary property, the process can be complicated.

Financing a second home

You will need to demonstrate to the bank that you can comfortably afford the repayments on both your home loans. In most cases, you’ll need to demonstrate you have the required income first. You can’t, for example, tell the lender that the rental income from your holiday home will cover the repayments. After all, holiday rentals are seasonal in nature. There may be long periods of the year when you receive little or no income from the property.

You might be able to secure finance against any equity you have in your primary property (the home you live in). Buyers can often obtain favourable terms if they have significant collateral. But you’ll still need a sizeable deposit — perhaps a lot more than the five per cent average.

Paying tax on a second home

You’ll have to pay stamp duty when you buy your second home — regardless of the price you pay. The rate is 3% on properties up to £125,000. The rate increases on a sliding scale as follows:

  • 5% for properties over £125,000
  • 8% for properties over £250,000
  • 13% for properties over £925,000
  • 15% for properties over £1.5m

For tax purposes, you must decide which is your main home. If you choose to sell your second home, and make a profit in the process, you’ll have to pay capital gains tax. However, it’s important to get advice from an accountant. You can offset any more you pay for agent’s fees, legal costs and stamp duty against any profit you make. This means you probably won’t pay tax on the total amount of profit — just the net profit you make after deducting all your expenses.

Letting your second home

Letting a second home

Before you buy a home to let, investigate the local rental market. You need to be certain that the rent you can achieve will cover your mortgage repayments and expenses.

You will also need to register for self-assessment tax returns. Even if you don’t make any profit, file a return anyway. List all your expenses, and keep records of everything.

As a tenant, you have certain legal obligations to fulfil. For example, you’ll need to pay for an annual gas safety inspection. You’ll need to attend to repairs as quickly as possible. And you’ll also need to buy landlord’s insurance cover.

There are usually several steps you need to take before you can list your second home in the rental market. As well as fulfilling your legal obligations, you may need to make cosmetic improvements. List all of the costs involved BEFORE you buy the property. The potential return on your investment may make the entire endeavour unprofitable.

However, if your goal is to simply cover costs until you can sell your second home for a profit, breaking even might be sufficient.

If you’re left with two homes and need to sell one of them quickly, Flying Homes can help. We buy property fast, and for up to 100 per cent of market value. Buying a second home can be risky, but we’re here to help if things go wrong.

For more information on how can help you get a fast house sale please visits our contact us page.

Sell Property Fast Cash,
Summer Lane,
South Yorkshire,
S70 2NZ
Telephone:0800 68 99 42

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