In recent years, more and more overseas buyers have purchased properties in the UK. However, due to a lack of in-depth understanding of the UK property market, many buyers have an inadequate understanding of the costs of buying property in the UK.So today our UK property experts will give you a brief introduction to the buying costs you need to consider when buying a UK property.
The cost of purchasing a British property includes house price, stamp duty , legal fees, loan fees and other miscellaneous expenses.Next, we'll go into more detail about these fees.
1. Stamp Duty
Stamp duty refers to a tax levied on various commercial legal certificates in the UK. It is mainly levied on houses, land lease transfer deeds, stock transfer deeds and life insurance policies, etc., and a proportional tax rate is implemented. When buying a property, whether a local resident or an overseas person, you need to pay stamp duty to the Inland Revenue Department so that the transaction can be recognized by the government. This is the main tax on purchasing property in the UK.
If you are the first owner-occupied house in the world and the house price is less than 500,000 pounds, the first 250,000 pounds can be claimed as a tax exemption, and the remaining amount will be subject to 5% stamp duty. If the house you buy is not your first home, a stamp duty of 3% will be levied.
For overseas buyers, this includes those who do not live in the UK and those who have not lived in the UK for 183 days. The stamp duty on the house will be 2% more. However, if you move within one year of purchasing the house, After arriving in the UK and staying there for 183 days, overseas buyers can apply for a full tax refund.#{11 }
2. Lawyer fees
When purchasing a property in the UK, whether a British local or a foreigner, you must hire a lawyer with a British license to complete all legal matters .The attorney's responsibilities include handling all legal documents and document reviews generated during the transaction.In addition, legal fees depend on the transaction price of the house, which is generally between £1,500-3,000.
3. Loan fees # {17}
Loan fees include loan application fees and bank internal approval fees. For tax residents outside the UK, some banks also offer loan services and can apply directly. Generally, these services cost between £1,500-£2,500.# {19}
It is recommended that home buyers choose a mortgage broker to help upgrade materials and choose the product that best suits them. Mortgage brokers usually charge a fee of 1.5%-3% of the loan amount, but this is an unavoidable cost.Due to the complexity of bank loans, it is difficult to find out all the options in a short period of time. Choosing a good loan broker can allow home buyers to easily complete the loan procedures.
#{ 22} 4. Other miscellaneous expensesLand survey fees, property registration fees and other miscellaneous expenses: generally around 0.2% of the house price.
The above points are the purchase costs for buyers when purchasing British real estate. If you are still unclear, you can consult Lansha Real Estate!
