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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.

 


 

Buying or Selling your home
What Happens Next on a Sale
What Happens Next on a Purchase
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