We have taken many calls in the last month from people who are planning to take advantage of the stamp duty holiday that was introduced by Chancellor Rishi Sunak on 8 July 2020.
The stamp duty announcement (which was from immediate effect) states that anyone who completes on a main residence up to £500k between the 8 July and 31 March next year will not have to pay stamp duty, and for any property over that amount, the buyer will only pay tax on the value above £500k.
This means that anyone spending £500k on a property before 31 March 2021, could save £15,000! Interestingly, since the announcement, Hamptons International’s survey found buyers registering interest in property costing £500-750k was up 92% year on year!
It has inspired many buyers to think;
- How can I make that tax saving work to our advantage?
- Could we use that money to extend our new property to increase its size and potential value?
- If there’s opportunity to extend, don’t rule out a smaller property if it’s in our favourite location
- Should we consider a ‘doer upper?’
It’s actually a very prudent way to use that saving by investing in your new property. Make modifications to suit your needs and increase its value and desirability in the long term!
Another survey of over 2000 UK adults by Checkatrade found the top 10 home improvements buyers plan to splurge their stamp duty savings on:
Top 10 home improvements
- New kitchen (40%)
- New bathroom (30%)
- Living room (27%)
- Garden (24%)
- Patio or outdoor entertaining space (18%)
- Dining room (12%)
- Loft conversion (12%)
- Cinema, home entertainment or games room (12%)
- Indoor workspace (12%)
- Outdoor workspace or swimming pool (11%)
Once you have a good idea what your budget will be, your next step should be to speak with one of KTA’s talented team to find out what you could do and have plans drawn up. You’ll have the peace of mind that your extension has been meticulously planned with long-term value, improved functionality, liveability and efficiency front of mind. You will also be able to get accurate quotes from builder! This is really important because, having made this saving, you certainly don’t want added extras on your building costs because your plans weren’t detailed enough from the outset.
How much does a home extension design cost?
To give you an idea of what it could cost to get a professional architectural design service from KTA for an extension, here are some rough figures (+VAT).
Following a feasibility study of £95;
- Design plans for a typical ground-floor rear extension of approx. 3m x 7m (225 sq ft) would cost around £750
- A similar size two-storey extension would cost around £1,500
- Loft conversions vary between £1,500 and £2,000, depending on size and complication.
The planning fee for a residential single storey extension in England is £206. A certificate of lawful development will cost you £103 and the fee for discharging planning conditions is £34 per request.
Depending where you are in the UK, the cost of a straightforward extension should allow for around £1,000–£2,000/m².
We are looking forward to hearing from you! Please give Kevin Todd a call on 07973 227925 to chat through your requirements and budgets or email him at kt@kevintoddarchitectural.co.uk
For design inspiration visit our ‘Inspire us’ section
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