How much does it cost to buy a house in the UK? What are the annual fees?

After domestic buyers purchase British real estate, what are the annual fees they have to pay during the holding process, that is, what are the holding costs?

Mainly include: property charges (Service Charge#{ 12}), municipal tax ( Council Tax), ground rent (Ground Rent#{21 }).#{21 }

If the UK property purchased by the domestic buyer is not used for self-occupation, but for If rented out, there will be a leasing agent charge (Letting Agents Charge) and personal income tax corresponding to the rental income (Individual Income Tax#{ 36 }).

　 Property fee

Property fees are mainly used to maintain public areas, building facilities and community management costs. However, compared with China, the property facilities and services in the UK are better, usually with gyms, swimming pools, etc., so the cost will be relatively high, usually every year 3-8#{56 }£#{ 54}/ sq. ft. There are also differences between different cities. Property prices in big cities like London will be higher.(Add teacher WeChat: #{59 }xinquanedu for details)

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# {70}　Ground rent

British There are two types of houses: freehold (#{79 }Freehold) and leasehold (Leasehold). Freehold There is no need to pay ground rent for properties with leasehold ownership, and ground rent needs to be paid to the landlord for properties with leasehold ownership. This fee usually varies based on the size and location.

Municipal tax

#{11 } In the UK, all properties must pay municipal property tax to the local government every year to pay for local government public service facilities, such as local libraries. , schools, transportation, recycling garbage, sanitation, etc.#{ 13}

Depending on the total price of the property, the amount of municipal property tax is also different.After the real estate transaction is completed, the buyer is responsible for contacting the local government to obtain the amount and payment method of the municipal property tax for the purchased property.Normally, the amount of municipal property tax in the UK ranges from £900-3000 per year.

In many cases, homeowners can apply for a reduction in municipal property taxes.For example, if all the tenants are full-time students, they can apply to the government for exemption from municipal property tax;Most municipal property taxes for rental housing are borne by the tenants#{132 };If the house is not rented out but is not the owner's primary residence, the owner can apply for a property tax exemption# {37}; Properties where only one adult lives can apply for municipal property tax exemption, etc.

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Lease hosting fee #{151 }

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#{78 }　Loan fees

#{ 186}

If the house is purchased through a loan, the holding costs also include loan repayment interest and other expenses. Fees will vary based on personal circumstances and loan status.

Personal income tax

#{11 }

If the purchased house is rented out, personal income tax must be paid in proportion to the rental income based on personal circumstances.The part collected is the net income after deducting land rent, property fees and other expenses. Everyone's situation is different. Please consult your accountant for specific payment amounts and related details.

#{21 }

Home Insurance

House insurance in the UK includes building insurance (Building Insurance) and contents insurance (#{226 }Contents Insurance), mortgage payment protection insurance and other insurance types. Not all insurances need to be purchased compulsorily.

If you need to apply for a loan to buy a house, the lending bank will cover the construction insurance in the house insurance ( Building Insurance) as a necessary condition for mortgage loan approval.Generally speaking, newly delivered properties in the UK will include ten years of building insurance, and owners do not need to purchase it separately.

　 House maintenance fee

The owner needs to set aside a small amount of money as the maintenance cost of the house. For example, changing the lights in the room, painting the walls, and corresponding repair work, such as renovating the kitchen, replacing the boiler, etc. However, newly delivered properties usually do not require this fee.

In addition, British law stipulates that every owner must have an internal water heater, Safety certificates for the installation and use of stoves, heating and other facilities must be inspected every year to ensure safety.

Newly built buildings are more cost-effective to buy for investment purposes because they require maintenance. Lower chance and cost of maintenance.