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Things to Bear in Mind
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When you buy or sell a house you will incur expenses in addition to the fee your solicitor charges you for the work he/she undertakes. You need to be aware of these expenses at the outset and budget for them.
The main expenses on a sale are as follows
- Estate agents fee - this fee is usually calculated as a percentage of the sale price and in addition most estate agents charge VAT on top.
- Mortgage Lenders sealing fee - this varies according to the lender but typically is £100
- Land Registry fee for official copies of the entries relating to your property on the register. The sum payable is between £8 and £12 depending on the number of documents.
- If you are selling a flat the freeholder or Management company may charge for supplying information required
by your buyer. This fee can vary from a few pounds to approximately £200.
- If you are selling a flat bear in mind the buyer will want the ground rent and service charges paid up to the date you complete the sale.
The main expenses on a purchase are as follows
- Search fees - Local Authorities and Water Companies charge for answering questions about the supply of services, planning permission etc regarding the property you want to buy. Typically Local Authorities charge approximately £150 and Water Companies £45
- Stamp Duty - this tax is charged as a percentage of the purchase price as follows
Purchase price less than £120,000 - nil Purchase price £120,000 - £250,000 - 1% Purchase price £250,000 - £500,000 - 3% Purchase price over £500,000 4%
- If
you are buying a flat the freeholder or management company may charge a fee for registering you as the new owner in their records. Typically the fee charged is around £50.
The above figures are illustrations of typical fees which can be incurred. You should check the level of fees payable in your particular case.
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Buying or Selling your home
What Happens Next on a Sale
What Happens Next on a Purchase
The Residential Conveyancing Team
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