Compare conveyancing costs and you will have a good idea of what you will need to pay when buying a home. The other big cost that you will need to pay is stamp duty. What is it and how much will you need to pay?
Stamp duty (otherwise known as Stamp Duty Land Tax or SDLT) is a tax that is paid when you buy a property. Only the buyer needs to pay this tax, not the seller; and it applies to all properties, both freehold and leasehold, that are worth more than £125,000. If the property you are buying is not an additional property, but will be your only home, then you will pay 2% of the value between £125,001 and £250,000 in stamp duty. For properties between £250,001 and £925,000, this rises to 5%; to 10% for properties between £925,001 and £1.5 million; and 12% for property over £1.5 million. If the property is to be an additional home, such as a rental property or holiday home, then you will need to add an additional 3% onto each of the above figures. Additionally, the lower limit begins at £40,000 rather than £125,001. Exceptions to these costs include homes that are registered not to individuals but to companies. If these homes are valued at over £500,000 then stamp duty is 15%. You will note that stamp duty rates are always fixed and there is no room for manoeuvre. Conveyancing rates, however, are not; so it is always worth taking the time to compare conveyancing quotes to get the best deal. If you compare conveyancing prices, you may be able to save money, especially if you are on a budget.
Moving house is an expensive time. Compare conveyancing costs to cut your expenses rather than relying on the first option you’re offered. The Conveyancing Network can help. Visit our website (https://www.theconveyancingnetwork.com/) to discover more about our services. If you need more advice, please phone 0203 637 2219 or email [email protected].