FREQUENTLY ASKED QUESTIONS
- What costs are involved in buying a Property?
There are a number of things for you to consider in addition to the price of the property itself.
(i) Stamp Duty
Stamp Duty (or Stamp Duty Land Tax, SDLT) is a tax levied by the Government when you are buying a home, not selling. It is paid on completion of a purchase and your solicitor will ask you to complete a Land Transaction Return and will need the funds to cover the duty shortly before the completion date. Your solicitor will then send the money to the Inland Revenue on your behalf.
Property or lease premium or transfer value SDLT rate
Up to £125,000 Zero
The next £125,000 (the portion from £125,001 to £250,000) 2%
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
For further information, please go to https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
(ii) Legal Fees
Dependent on a number of variables, namely the size of the transaction, your choice of solicitor and the amount of work required, conveyancing fees can vary quite dramatically, but on average, expect to pay between 0.5% - 1% plus VAT of the purchase price of the property.
Richard James can help you find a specialist firm of solicitors but whomever you instruct, we'd advise you to get a written quote and a breakdown of each individual charge before you go ahead. Within the quote, you will be subject to disbursement costs such as Land Registry fees, obtaining property deeds and various searches that your solicitor will detail in the final invoice.
For further information, please go to www.lawsociety.co.uk
We work with a number of very good, reputable firms and will be glad to recommend them upon your request.