February 25, 2015
Increase in Stamp Duty Increases Londoners opting for a Glass Extension
Written by Rebecca Clayton
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IQ Glass Solutions LTD, Sky House, Raans Road, Amersham, HP6 6FT
From midnight on 3rd December 2014 the way Stamp Duty, paid on house sales within the UK, was calculated was changed.
The imposed changes meant that the majority of house sales within the UK would pay the same, or less, Stamp Duty on the purchase of a new home with only 2% of the housing marketing falling into the upper categories.
But with average houses prices within the London area surpassing £500,000 last year it is not surprising that the majority of these 2% affected properties is within the London area with London home owners being hit with large Stamp Duty taxes when purchasing a new home.
For instance, a £1.5 million house in London will now incur a Stamp Duty charge of around £93,750, a 25% increase and £18,750 more than what would have been paid under the previous Stamp Duty rates.
With these increased costs to moving home it is not surprising that London home owners are choosing to improve their homes, rather than move.
So what can you do with your money if you chose to improve, not move?
£1.5 million Home
A £1.5 million home will incur an extra Stamp Duty charge of around £19,000. By investing this money back into your house rather than moving home owners could dramatically transform the rear of their home by opening it up to the garden using new glass doors.
Slim framed sliding glass doors will give you the best overall appearance and effect, with flush floor finishes and minimal framing.
£2.5 million home
A £2.5 million home will incur an extra Stamp Duty charge of around £39,000. Instead of moving home owners could add a small extension, or a popular side infill extension to a terrace home. These small but significant additions to homes can help create open plan living areas which are so popular in modern building design.
Clever uses of glass such as in rooflights or rear patio doors will help bring natural light into these spaces, which is essential to create a welcoming living space.
£4 million house
A £4 million home will incur an extra Stamp Duty charge of around £114,000. For this amount of money you could afford to add a significant extension onto your home, perhaps two storeys, adding extra living space as well as bedroom and bathrooms.
Double height glass extensions work well on narrow London properties allowing light into spaces through the large rear glass façade where no side windows are possible.
£10 million house
For houses at the upper end of the housing market they can expect to pay an extra 59% in Stamp Duty. These properties could benefit from new basement extension or complete renovations. A basement extension is the most expensive of all home extensions, priced at around £3000 to £4000 per m2 but can increase the property value by £6,000 to £30,000 per m2
Contact IQ Glass for more information about using architectural glass in your house improvements or to visit our architectural glass showroom in Buckinghamshire.
01494 722 880
The Courtyard Showroom, Sky House, Raans Road, Amersham, Bucks, HP6 6FT