Buying a Property Expense

Financial calculations must be made ensuring client has sufficient funds to purchase the property and pay related costs.

Land Registry Fees are payable for registering the land or a dealing at Land Registry after completion. Fee’s are payable on a scale published by the Land Registry and the client can find out the exact amount (£40-300 ish).

Stamp Duty tax is payable at the rate of 1 % on the whole consideration paid. Where it exceeds £125,000 (Residential property) or £150,000 (Commercial property) or property is within a disadvantaged area (check hmrc website for list of disadvantaged areas) and not exceeding £250, 0000.
Prices between £250,000 and £500,000 will pay at 3%. Anything that exceeds £500,000 will need to pay 4%.
Bare in mind total tax payable does not include price of chattels. But in some cases m, if the sale includes chattels its possible to alleviate tax payable by apportioning some of the price to the chattels included in the sale i.e. furniture, carpets etc. However this amount must be a fair reflection of the value of the chattels otherwise both the solicitor and the client will be liable to criminal sanctions.

Deposit: Buyers are usually required to pay a deposit of 10% on the purchase price (although it maybe possible to negotiate a smaller sum). Solicitors need to discuss with their client how they intend to fund this.

Mortgage: Most clients will choose to fund their purchase via a mortgage. Plus an arrangement fee (£200-300).

Mortgage Premium Insurance- Pays for the mortgage on the off chance the client falls ill or looses work. Although it has its limits as well as requiring the client to have worked a certain number of years.

Survey: Commission an independent survey of the property ensuring the property is free of unknown defects. There are different types, the more detailed the survey the higher the cost i.e. a valuation will only provide basic information and usually carried out by the lender.

Searches: Anything between £200-300

Professional Fees (solicitors) usually in the range of £350-£1000 + VAT. Depends on the property. Always added onto the disbursements.