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FEES AND OTHER EXPENSES
Whether buying or selling you will have legal fees to pay.
These will reflect the time and work involved and also take
into account the value of the property and other factors.
Please ask us for an estimate at the outset of our likely
charges, the VAT payable and any disbursements. Other fees
and expenses you are likely to incur are:
SELLER
Estate Agent¹s Commission
This is usually between 2% and 3% of the purchase price (plus
VAT) though the rate should be agreed with your estate agent
when you first appoint him. Consider at the outset whether
to appoint on a sole agency basis or subject to other terms.
Commission will be lower for a sole agent, but may be payable
even though you find a buyer yourself. We can advise you on
this.
BUYER
Land Registry Fees
These are charged on a fixed scale.
Surveyor's Fees
The fees for a structural survey will be by arrangement with
your surveyor.
Mortgage Loan Fees
Valuation and commitment fees for arranging the mortgage
will be charged by your building society or bankers.
TAXATION
The taxes that are likely to apply in such transactions are:
Stamp Duty
This is payable by a buyer on property purchases of over
£60,000 at the following rates:
• 1% if the purchase price is between £60,001 and
£250,000;
• 3% if the purchase price is between £250,001
and £500,000;
• 4% if the purchase price is in excess of £500,000.
Stamp Duty is also chargeable on the rental element of a
new Lease and on an exchange of property.
Inheritance Tax
Inheritance tax is payable on the value of a person's assets
when he dies and on some lifetime gifts. If he is not domiciled
in the UK, the tax is only due in respect of his UK assets
and careful planning can reduce the tax to nil.
Capital Gains Tax
In principle, this is chargeable where a seller makes a chargeable
gain on a disposal of property. However, gains made on the
disposal of a principal private residence are exempt. Where
someone has two or more residences, he can elect which is
to be treated as his main residence. When someone has non-UK
connections he may be able to organise his affairs so any
gain on sale is exempt.
Income Tax
Income tax is payable on rent from property (subject to allowable
expenditure which can reduce the tax to nil) and on profits
from property dealing.
An occupier of property owned by a company may be charged
to income tax unless a full rent is paid. We can advise on
this risk.
VAT
This is not usually applicable for residential properties
with certain limited exceptions.
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