Hey big spenders, get in quick to beat the tax rise

Stamp duty is go­ing up, and if you’re plan­ning to spend mil­lions, it means there is big money to be saved by act­ing fast. Sharon Dale re­ports.

Yorkshire Post - Property - - PROPERTY -

A ONE per cent rise in stamp duty might sound paltry, but when it’s loaded onto prop­er­ties over a mil­lion, it will add at least £10,000 to the cost of buy­ing.

That’s what will hap­pen from April 6 when the tax in­creases from four to five per cent on homes sold for more than £1m.

If you can’t quite meet the dead­line, then you could fol­low the lead of one canny mil­lion­aire who is buy­ing through Blenkin and Co. in York.

“He wanted to com­plete the deal by the end of March to avoid the rise in stamp duty, but the owner was un­able to move be­fore then, so they’ve come to an ar­range­ment whereby the owner will sell, but con­tinue to live there for a fur­ther few month on some form of rental agree­ment,” says Tim. “It’s a £1.5m house, so he’s saved £15,000.”

Any­one look­ing to pur­chase the most ex­pen­sive house on the open mar­ket in York­shire, will need to act fast to beat the tax man, oth­er­wise there will be an ex­tra £50,000 to pay in stamp duty for lux­u­ri­ous How­sham Hall, near Mal­ton.

The ex­quis­ite, grade one listed prop­erty has an ask­ing price of £5m with joint agents Knight Frank and Sav­ills. It’s just been re­launched af­ter a sale fell through and is look­ing like a bar­gain. It was £6m ear­lier last year.

How­sham is an ex­quis­ite tro­phy house, with stun­ning in­te­ri­ors, in­clud­ing Doric col­umns, stucco friezes and con­tem­po­rary wow fac­tor. It comes with seven bed­room suites, a fam­ily and leisure wing, of­fices, staff ac­com­mo­da­tion and 83.5 acres, in­clud­ing fish­ing rights on the River Der­went. In­ter­est in it has come from all cor­ners of the globe.

“The higher the price and the higher the num­ber of would-be buy­ers from out­side York­shire, this is a na­tional and in­ter­na­tional house,” says Tim War­ing, of Knight Frank.

“We have had in­ter­est in it from Leeds, Europe, the Mid­dle East and Aus­tralia.”

Prop­er­ties be­tween one and two mil­lion pounds ap­peal to wealthy lo­cals and oth­ers look­ing to re­lo­cate from the South to York­shire. A quar­ter of buy­ers for top end houses are from out­side the area.

They’re re­al­is­ing that it’s can be quicker to get to London from some parts of York­shire than it is from deep­est Glouces­ter­shire and Hamp­shire.

It’s now less than two hours on the train from York,” says Tim War­ing. “You’ll usu­ally find these peo­ple have some sort of link with the area and they want to come back to their north­ern roots or they want to send their chil­dren to school here. I’ve had three peo­ple from the City buy­ing here re­cently for those rea­sons.”

The pro­file of lo­cal buy­ers has changed since the credit crunch from bankers, lawyers and ac­coun­tants to busi­ness peo­ple and the self-made mil­lion­aires who want to en­joy the hard earned fruits of their labour.

“We are see­ing a re­turn to the tra­di­tional north­ern buyer, so the peo­ple who run small to medium-sized busi­nesses. They’ve worked hard, are do­ing quite well and want to buy their dream, house,” says Tim War­ing.

There are two prop­er­ties new to the mar­ket that are set to ex­cite a huge amount of in­ter­est from this kind of house hunter.

Hart­mires in Leath­ley, be­tween Ot­ley and Har­ro­gate costs £1.45m with Knight Frank. The el­e­gant, five-bed­room coun­try house set in two acres needs some up­dat­ing, but is in stun­ning coun­try­side close to Leeds.

Bur­ley Hall in Bur­ley-in­Wharfedale, near Ilk­ley, has a guide price of £2m with Dacre, Son and Hart­ley and Dove, Haigh, Phillips.

The Grade I listed house was built by the poet Thomas Maude in 1798 and is the for­mer head­quar­ters of home shop­ping, health­care and ed­u­ca­tion spe­cial­ist Fin­del PLC.

Scar­bor­ough-based Broad­land Prop­er­ties bought Bur­ley House from Fin­del in 2006, though the com­pany re­mained as a ten­ant un­til re­cently.

The house, which comes with a mews build­ing and coach house, could be con­verted back into a grand fam­ily home.

There will cer­tainly be plenty of view­ings. Ac­cord­ing to Sav­ills, in­ter­est in lux­ury homes is high and sales went up by 80 per cent last year com­pared with 2009. They pre­dict that a strong de­mand for and a short­age of sup­ply will push prices up by five per cent over the next 12 months.

But the stamp duty rise will have a neg­a­tive ef­fect on some homes. “If some­one thinks they can get £1.1m they’re mis­taken. They might get a mil­lion. It’s the same with prop­er­ties just over the £500,000 thresh­old, which al­ways go for £500,000,” says Tim Blenkin.

“There’s also a dual mar­ket. Some­thing ex­cep­tional in the best lo­ca­tion or some­thing very com­pet­i­tively priced will sell, whereas some­thing more or­di­nary will stick.”

Good trans­port links: prox­im­ity to the big com­mer­cial cen­tres is im­por­tant for most buy­ers. They don’t want to live more than an hour’s drive away,

Tim War­ing, of Knight Frank, says: “The golden triangle is as strong as ever. So Leeds, Ilk­ley, Har­ro­gate and Wetherby, then Skip­ton, Ripon and York. That’s the core, but ar­eas round the M62 cor­ri­dor, es­pe­cially Hud­der­s­field and Hal­i­fax, to­gether with the south of Wake­field and south of Sh­effield are also de­sir­able. Al­to­gether it’s a di­a­mond ring, rather than a golden triangle.

Good pri­vate schools: Prime prop­er­ties around Am­ple­forth and any­thing with easy ac­ces­si­bil­ity to St Peter’s in York are sought-af­ter.

Value for money: Most mil­lion­aires want this and will only pay over the odds for some­thing of real qual­ity. Big spenders who want more bang for their buck go fur­ther afield deep into the North York Moors, Wolds and fur­ther up the A1.

Land: They want their own piece of York­shire even if they have no in­ter­est in gar­den­ing or farm­ing.

To­pog­ra­phy: In­ter­est­ing views with hills ap­peal more than the flat lands around places like the Vale of York.

In­te­ri­ors: Large liv­ing kitchens, cin­ema rooms and plenty of bath­rooms, but not too many. If it’s a five bed­room house, then three is enough.

Pri­vacy: a house sur­rounded by land is best. In the coun­try, they will buy sur­round­ing farm­land to pro­tect them­selves from pry­ing eyes.

Top, The most ex­pen­sive and lux­u­ri­ous house on the mar­ket in York­shire is How­sham Hall, near Mal­ton, at £5m with Knight Frank and Sav­ills. Bot­tom left: Hart­mires, Leath­ley, is £1.45m with Knight Frank, Har­ro­gate, and bot­tom right, Bur­ley Hall is on the mar­ket for £2m with Dacre, Son and Hart­ley, Ilk­ley.

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