PHRASES YOU MAY COME ACROSS

STAMP DUTY LAND TAX
Stamp duty land tax, often just called Stamp Duty, is tax you have to pay to the government on most, but not all properties you buy. If your property is worth £125,000 or less, then you are typically exempt from stamp duty. 

Current Stamp Duty rates on properties of £125,000 and over are:

  • £125,000 to £249,999 - 1%
  • £250,000 to £499,999 - 3%
  • £500,000 and over - 5%

Your conveyancer will give you more details.

Gazumping
Gazumping is is where the seller sells to another buyer for a higher price even though your offer has been accepted. This happens before the exchange of contracts, while your offer is only subject to contract.

Exchanging contracts
This is where signed contracts are swapped between the seller's conveyancer and the buyer's conveyancer. Your deposit is paid at this point and you are now legally bound to buy the property.

Offer Accepted Subject to Contract
If your offer is accepted, this will be on the basis of either Offer Accepted Subject to Contract or Offer Accepted Conditionally. If your offer is accepted subject to contract your conveyancer is instructed to go ahead with the legal work. There is however no legal commitment at this stage, just a moral one.

If your offer is accepted conditionally you accept an offer on condition that, for example, the buyer receives a satisfactory mortgage offer or survey report, or obtains a subject to contract offer on his or her own property.

Offer accepted conditionally

This means you accept an offer on condition that, for example, the buyer receives a satisfactory mortgage offer or survey report, or obtains a subject to contract offer on his or her own property.

In this case, we'll ask whether you want us to continue actively marketing your property, during this conditional period. Whatever you decide, we'll still tell you if other offers are made on your property.

Being in a 'Chain'
You are in a 'Chain' if you are awaiting the sale of your current home before you can afford to buy your new property.

The person buying from you, and the person whose home you intend to buy may also be in a chain, creating a chain of dependencies affecting your own home move.

Inheritance Tax
Inheritance tax is sometimes applicable on an inherited 'estate'. An estate includes everything you own, including your home, at your time of death.  This applies when the value of your inherited estate is above £285,000 (exemptions apply). The current rate is 40%.