Costs and clearance when buying a property in the UK

Costs and registration when buying real estate in Great Britain: How much does the deal cost and what additional costs should be considered - legal support

Many people know that investing in Great Britain is one of the most reliable ways to get the right to live in the country, and later to obtain permanent residence and citizenship. However, investing in the British economy is also a great way to make money.

In this article, we look at investing in UK commercial and residential property as a promising way to preserve and grow your capital over the long term.

Hidden benefits of UK property

As in any country with a free and stable economy, the real estate market in England has gone through different stages: from stagnation to rapid growth. However, it is not by chance that Great Britain is annually included in the top five most attractive countries for investment. In the long term, your house or flat in England will not only protect your money against inflation, but can also bring a substantial profit when sold.

Commercial or residential property in the UK can be bought with the purpose of renting out, which allows you to receive a stable monthly income.

Conclusion of the deed of sale

A deed of sale is an official document that describes the object of sale in detail. It contains information about the seller, the buyer and the lawyers who accompany the deal.

Independent assessment

If real estate in the UK is bought on credit, the buyer is obliged to conduct an independent appraisal of it. A licensed appraiser checks the condition of real estate and determines its real market value.

This information is important for the bank, since the purchased object serves as collateral for the loan. If the real value of the real estate turns out to be significantly lower than the declared value, the buyer has the right to demand a price reduction.

Exchange of contracts and signing of agreement

Exchange of contracts is the British equivalent of a deposit transfer agreement. The buyer and seller exchange signed contracts. The buyer reserves under the contract a deposit in the amount of at least 10% of the value of the object. In case of failure of the agreement, the buyer loses this deposit.

The final agreement is concluded in the mandatory presence of a notary, seller, buyer and lawyers from both sides. During the conclusion of the agreement, the balance of the amount under the contract is paid. Also, on the day of signing the final sales contract, the seller must pay the stamp duty.

Registration of ownership

Lawyers are engaged in the registration of property rights. After paying the stamp duty, a special stamp is placed on the agreement documents.

Subsequently, the documents are transferred to the cadastral registry (Land Registry), where information about the new owner is entered.

Purchase taxes

Stamp tax is calculated on a progressive scale:

• Objects worth up to 125 thousand pounds are not subject to stamp duty.
• If the value of the property is between 125 thousand and 250 thousand pounds, the fee will be 2%.
• For objects worth from 250 thousand to 925 thousand pounds, the rate is 5%.
• Real estate from 925 thousand to 1.5 million pounds is taxed at 10%.

The state fee for the registration of the agreement in the cadastral register is 0.1% of the amount of the purchase agreement.

Municipal contribution - 200 pounds.

The transfer tax depends on the value of the deal and ranges from £40 to £750.

Payment for services

Notary services are 0.5% of the value of the object. When issuing a mortgage, the services of a financial broker are from 1% to 1.5% of the amount of the received loan. The commission of a real estate agency varies from 1.5% to 4%. An independent assessment for mortgage lending costs from 500 to 1.5 thousand pounds.

Legal support when buying real estate in Great Britain

Legal support when buying real estate in Great Britain covers several key stages. First, an independent assessment of the real estate and verification of the legal status of the object is carried out. After that, a contract is concluded, in which the buyer pays a deposit, and the necessary legal checks are carried out. At the final stage, the final contract is signed, stamp duty and other costs are paid, and ownership rights are registered in the cadastral register. The lawyer also monitors the fulfillment of all terms of the agreement and provides recommendations on further actions.

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• Professional lawyers specializing in the protection of debtors' rights.
• High level of effort to achieve a positive result.
• Ensure confidentiality and an individual approach to each client.

If you need help with the registration of real estate when buying in Great Britain, contact our specialists. We unite leading lawyers ready to provide qualified assistance at all stages of your process. Contact us today to get support from experienced professionals! Call +447418377298 and get professional help now!