Nowadays, the British real estate market is very hot, and many overseas people want to buy British real estate. However, many people do not know much about the basic common sense of the British real estate market. For example, after purchasing a property, what fees do you need to pay during the period of holding the property?Therefore, in this article, the editors of UK Property will briefly introduce what costs need to be paid during the period of owning UK property?#{1 }
1. Municipal property tax
The British municipal property tax is determined based on the market value of the British Property Valuation Authority in April 1991 and is collected by local governments.The higher the value of the property, the higher the amount of municipal property tax will be.Typically, municipal property taxes account for between 0.05% and 0.4% of current house prices.
The municipal property tax is determined by British local governments based on the assessment of the market value in April 1991 by the British Property Valuation Authority. The tax amount is proportional to the value and area of the house.Different property values will correspond to different municipal property tax amounts, which are generally around 0.05% to 0.4% of the current house price, and you need to pay approximately 900 to 2,000 pounds per year.
2. Ground rent fee
In the UK, real estate property rights are divided into two types: free property rights and leasehold property rights.Typically, villas are freehold, while apartments are leasehold.If the property you buy is freehold, you have absolute ownership and do not need to pay ground rent.However, if you buy a flat, you will need to pay ground rent as it is a leasehold property.
The ground rent fee is charged on an annual basis. The fee depends on the location and type of the house. Depending on the property and the size of the apartment, the annual ground rent fee ranges from 300 to 500 pounds.
3. Property management fee
Property management fee is usually calculated based on the actual area used by the house, and will vary depending on the property's supporting facilities and the positioning of the property. For example, if the property is equipped with 24-hour concierge service, gym, swimming pool , etc., the property management fee will increase accordingly. This fee is similar to domestic property fees and is mainly used to maintain the building, facilities and community management. However, property management fees in the UK are relatively high, generally between £3.50 and £8 per square foot per year.
4. House leasing agency fee
If you choose to entrust the property you purchased to an agent for leasing and management, you will generally be charged 10% of the total annual rental income of the house. As a service fee (including 20% VAT). This agency fee will be deducted from the rent and will only be paid after you find a tenant, so you don't have to worry about wasting money.
5. Personal Income Tax
If you rent a property for rent, the net income from the rental is subject to personal income tax. The tax rate is based on the individual's income, at 20% -45%.
