Desperate property buyers borrow at 16pc a year to beat stamp duty deadline
Expensive ‘bridging’ loans that can be taken out in days are one way to make sure purchases complete before March 31
Bridging finance is much more expensive than traditional mortgages
Credit: Mark Magnaye
Home buyers have turned to lesser-known forms of borrowing, at sky-high interest rates, to ensure their property purchases complete before the stamp duty deadline.
Buyers could be left with a £15,000 tax bill if their transaction does not conclude before March 31. However, as banks, solicitors and surveyors struggle to cope with demand, there are fears that thousands of people may miss the cut-off date.
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The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital. The final determination of the source and tax status of all distributions paid in 2020 will be made after the end of 2020 and will be provided on Form 1099-DIV.
The Fund is a diversified, closed-end management investment company. The Fund’s investment objectives are to seek a high level of current income and to return $9.85 per common share of beneficial interest (“Common Share”) of the Fund (the original net asset value (“Original NAV”) per Common Share before deducting offering costs of $0.02 per Common Share) to the holders of Common Shares on or about February 1, 2022 (the “Termination Date”). The Fund, under normal market conditions, pursues its objectives by primarily investing at least 80% of its Managed Assets in a portfolio of sen
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