Buying a home is one of the most significant financial decisions a person can make. If you own a leasehold house, you may not realise that you have the opportunity to purchase the freehold, or you may wonder whether it would be worthwhile.
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Property is a high value asset – your property is probably the most valuable asset that you own. Because of its high value it is an attractive target to fraudsters, therefore it is important to protect it from this ever-increasing risk of property fraud.
What is property fraud?
Typical property fraud involves a fraudster impersonating the registered owner of a property and attempting to sell or mortgage the property before disappearing without trace with their financial gain, leaving the legal owner without a property and with the debt.
Who is at risk from property fraud?
Anyone who owns a home is at risk of property fraud, but there are certain properties that have a much higher risk and are more vulnerable to property fraud, for example:
- If the property is not registered at the Land Registry
- If the property is a buy to let property
- If the property is empty
- If the property is mortgage-free
- If the registered owner’s address details are not kept up to date
How can I protect my property from fraud?
There are steps that you can take to protect your property from fraud.
The Land Registry offer a Property Alert service which you can sign up to for free. The Land Registry will notify you of any applications that they receive for the property that you are monitoring.
You should make sure that your contact details are kept up to date so that the Land Registry are able to contact you where necessary. If your details are not up to date, you may not receive correspondence from the Land Registry that might relate to a proposed application, or, in the case of empty properties for example, that correspondence could be intercepted and actioned by fraudsters.
You can ensure that your property is registered at the Land Registry. If your property is not registered, we can assist in making an application to the Land Registry for the first registration of your property.
You could apply for a restriction to be placed on the title register of the property, to prevent the Land Registry from registering certain applications such as a transfer or mortgage, unless a certificate is provided by a conveyancer to certify that the application was indeed made by you. We can assist with making the necessary application to the Land Registry to have this restriction put on the title to your property.
If you would like more information as to how we can help you minimise the risk fraud to your property, please get in touch with a member of our team.
2025 marks 100 years since the Law and Property Act 1925 (and its sibling Acts, the Settled Land Act 1925; the Trustee Act 1925; the Administration of Estates Act 1925; the Land Charges Act 1925 and the Land Registration Act 1925) were introduced by Lord Chancellor Lord Birkenhead and transformed conveyancing as we know it
We are delighted to announce Shirley Turner has been appointed our Property Team Leader
What is Stamp Duty and When is it Payable?
Stamp Duty is tax paid by the purchaser when buying a residential property, such as a house or flat. The amount of Stamp Duty Land Tax (SDLT) depends on the value of the property, the purchase date and whether you are a multiple homeowner. SDLT is payable on properties purchased in the UK or Northern Ireland. However, different rules apply if you are a non-UK resident or if you are purchasing in Scotland or Wales.
SDLT is due when you buy either a freehold property, a new or existing leasehold or a property through a shared ownership scheme. It is also payable when you are transferred land or property in exchange for payment. It is calculated on increasing portions of the property price (see below).
Current Rates
Up to 31 March 2025, the following rates apply. To qualify for these rates, your transaction must be completed before this date, meaning you legally own the property.
| Rates up to 31 March 2025 | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £250,000 | 0% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
| Rates from 1 April 2025 | |
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Buying your first home
You can claim a discount (relief) if the property you buy is your first home. To be eligible both you, and anyone else you’re buying with, must be first-time buyers.
Up to 31 March 2025 this discount is as follows:
- No SDLT due up to £425,000
- 5% SDLT on the portion from £425,001 to £625,000
You cannot claim the relief if the purchase price is over £625,000.
Whereas from 1 April 2025, the discount is:
- No SDLT up to £300,000
- 5% SDLT on the portion from £300,001 to £500,000
You will not be able to claim the relief if the purchase price is over £500,000.
Buying additional properties
Higher rates of SDLT apply for anyone purchasing additional residential properties, as you will usually have to pay 5% on top of SDLT rates if buying the new property means you’ll own more than one.
Replacing your main residence
The additional 5% SDLT will not be payable if both the following apply:
- The property you’re buying is replacing your main residence.
- Your previous main residence was sold within 36 months of completing your new purchase.
Therefore, if you have not yet sold your main residence on the day you complete your new purchase, you’ll have to pay higher rates.
Calculating SDLT
You can use the Gov.UK SDLT calculator and check the higher rates to work out how much tax you’ll pay.
You can also check if you are eligible for a refund.
References
Find out more about SDLT by visiting: https://www.gov.uk/stamp-duty-land-tax
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