Costs and Guides

Deposit

The amount you put towards the cost of the property when you purchase. On average, you need at least 5% to 20% of the purchase price when obtaining a mortgage.

Stamp duty Land Tax (SDLT)

If purchasing a property whether a house, flat, land or building with a value in excess of £125,000, the purchaser will be required to pay Stamp Duty.

The rate of stamp duty you'll pay depends on where in the UK you're buying a property with England, Wales & Northern Ireland having the same rates, but with Scotland uses different rate bandings.

Of late, stamp duty has been reformed and the system where property purchasers paid a single rate on the entire property price has recently changed.

Always speak to a specialist, but see below for some facts.

Residential properties

You’ll pay:

  • nothing on the first £125,000 of the property price
  • 2% on the next £125,000 (the portion from £125,001 to £250,000)
  • 5% on the next £675,000 (the portion from £250,001 to £925,000)
  • 10% on the next £575,000 (the portion from £925,001 to £1.5 million)
  • 12% on the rest (above £1.5 million)

Non-residential and mixed-use properties

You’ll pay:

  • nothing on the property price, premium or value up to £150,000 (annual rent less than £1,000)
  • 1% on properties up to £150,000 (annual rent £1,000 or more)
  • 1% on properties between £150,001 and £250,000
  • 3% on properties between £250,001 and £500,000
  • 4% on properties over £500,000

If you want to find out how much you would pay use the HMRC SDLT calculator to work it out.

Special rules for SDLT

There are special rules and exceptions for SDLT for those who:

  • Buy 2 or more properties from the same seller or someone you’re ‘connected to’ (eg a relative or business partner)
  • Buy property through a shared ownership scheme
  • Transfer ownership of a property through marriage, civil partnership, divorce, from a will or to a company

You have 30 days to pay the tax from the date of purchase completion. If you have any questions regarding stamp duty or taxes contact us today to speak to one of our tax specialists.

Valuation fee

One of the most important tasks for purchasers and mortgage lenders who will assess the value of the property. Costs can vary and can be anywhere between £150 and £1,500 based on a percentage of the property’s value.

When instructing an independent agent find out what else you can get if you pay a valuation fee, you may find there are a number of optional extras including exclusivity of sale, multi listing and other services.

To find out more about Properties on the Market Valuation Services contact us today

Choosing a mortgage/mortgage fees and costs

Choosing a mortgage that is right for you will often require the advice of an experienced professional. 

We recommend that you always speak with an experienced mortgage broker or qualified financial adviser. Properties on the Market have access to more than 5000 experienced consultants and regulated professions.

Make certain you are aware of any upfront costs. Are any fees added to your finance arrangement? And whenever possible negotiate a fixed fee.  If you are looking for a mortgage or purchasing finance find out more about the services provided by the Properties on the Market team.

Surveyor’s fee

To establish if there are any issues with the property before you buy you’re going to need a good surveyor! There are a range of options when having a survey, a basic home condition survey which could cost around £250 to a full structural survey costing anywhere from around £600 or more, plus VAT.

Legal fee

To ensure a smooth transaction, it’s always advisable to have the law on your side, especially when it comes to making an investment in a property.  A solicitor or licenced conveyancer will carry out all the legal requirements whether purchasing a property or selling your home.

Your legal fee will include the cost of things such as local searches, at a cost of around £250-£300 +VAT. You may also require things such as checking for any local planning requirements or potential issues and should allow an additional £500-£1,500 including VAT.

Working with the Properties on the Market pre-sales and post sales team, we’ll ensure that you have a full understanding of the costs when it comes to Legal Fees.

Electronic transfer fee   

In some cases you may be required to pay an electronic transfer fee, which typically costs around £40-£50, covering things such as the lender’s transferring mortgage funds from the solicitor and then seller.

If you are purchasing the property with cash or as an investment, these fees will often be disclosed prior to purchase and in most cases can be negotiated, just speak to a member of the Properties on the Market team to find out more.

Estate agent’s fee   

If you are selling your property with the help of an estate agency, a fee will be discussed and is often negotiable depending on the number of services that you choose to benefit from.

Some may offer a fixed listing fee, and others may offer a resale service of anywhere between 1% - 3% of the sale price plus VAT.

For those investing in property, it is possible that your local estate agent has access to investment properties and opportunities.  In some cases a property sourcing or agency fee may be required in advance, this is often common with experienced property consultancies and property networks.

To find out more about our fees contact us today or speak to a member of the team.

Removal costs   

This could be around £300-£600 though you could do it yourself, however this is often one of the things that people leave until the last minute.  Always book in plenty of time, make sure that you obtain a number of quotes and speak to a member of the Professional movers Association.

We can discuss options here with the PMA and Moving Etc

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