Property related costs

 

The following costs should be considered when buying a property:-

 

Solicitors fees   Stamp Duty Land Tax (SDLT)   Survey and valuation fees   Buildings and contents insurance   Financing costs (where applicable)   Removal costs

 

 

Solicitors Fees

 

These can vary depending on the firm, property prices and the complexity of the work required.

Ultimately, the solicitor will perform the following role:-

  • Check the seller has the legal right to do so
  • Check the seller has the legal right to do so
  • Conduct searches and make further enquiries if issues arise
  • Arrange for the exchange of contracts and completion date
  • Complete the purchase

 

Stamp Duty Land Tax (SDLT)

SDLT is a one off tax paid by the buyer on purchases of property over £125,000. The amount varies according to the price of the property as below following the changes in December 2014:-

 

          property purchase price

   

sdlt (% of the total purchase price)

£0 – £125,000     0%
£125,001 – £250,000     2%
£250,001 – £925,000     5%
£925,001 – £1.5 million     10%
£1.5m+     12%
£500,000+ bought by corporate bodies     15%

 

Example: A buyer exchanges contracts for the purchase of a house for £700,000 on 5 December 2014, with completion expected to in February 2015. The SDLT is calculated as follows:

0% on the first £125,000 = £0
2% on the next £125,000 = £2,500
5% on the final £25,000 = £22,500
Total SDLT payable = £25,000