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The Costs of Buying Property
Checklist
of costs associated with buying a
new home
Stamp Duty
Stamp duty,
stamp duty reserve tax (SDRT) and
stamp duty land tax (SDLT) are charged
on transactions in shares and land.
The rates are:
£125,001
- £250,000 |
1% |
£250,001
- £500,000 |
3% |
£500,001
or more |
4% |
The threshold
depends on whether the property is
residential or commercial and whether
it is in a "disadvantaged area":
Residential Commercial
General £120,000 £150,000
Disadvantaged £150,000 £150,000
Stamp duty is charged on the total
consideration, and is always rounded
up to the nearest £5.
SDLT is charged
on the whole consideration and is
rounded down to the nearest £1.
SDLT is charged
on the grant of a lease on any premium
(using the above rates) and on the
discounted net present value of the
rental stream. This charge is at 1%
of the excess of the NPV over the
threshold.
Fixed duties
on instruments have been abolished.
Gifts, wills and other 'gratuitous
transfers' are generally not liable
to duty at all. Stamp duty and its
related taxes are normally due from
the purchaser within 30 days of the
chargeable transaction.
Legal fees
are approximately £350 for a
purchase price of £100,000
Local searches
vary from council to council. The
average cost is £85.
Land registry
charges vary between £100 to
£200 depending on purchase price.
All of the above will be handled by
your solicitor/conveyance.
Survey fees vary.
The average is £200 for a property
of between £100,000 and £150,000.
This is payable with your application.
Some lenders refund the survey fee
upon completion.
All lenders require
building insurance. The lender may
insist that they provide it on a special
scheme, otherwise you may arrange
your own. An arrangement fee is usually
payable for a fixed rate deal; most
discount or variable rates have no
fees.
An indemnity
guarantee premium may apply.
Estate Agents’
fees will only be payable when you
are selling a property. These range
from 1% to 3% of the sale price.
Moving
costs vary enormously. Make sure you
get at least 3 quotes from reputable
companies.
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