Buying Costs

Below is an estimate of buying costs (incl. VAT) for a property costing £ 100,000:

* Stamp Duty for the British government is 1% of the purchase price for properties worth between £ 60,000 and £ 250,000.

All buying costs save the legal fees and the registry searches will, to some extent, depend upon the value of the property. As can be seen from the above calculation, the costs amount to some 4% of the purchase price to which should be added Anglodan’s fees (see Fees). However, the buying costs as a percentage of the purchase price will decline as the purchase price rises (up to a maximum of £ 250,000) as the costs for the Solicitor, the registry search, and Anglodan’s assistance do not depend upon the purchase price of the property. Moreover, costs for the Surveyor only rises moderately as the purchase price increases. If the price of the property exceeds £ 250,000, other and considerably higher percentages apply for the Stamp Duty. For properties valued between £ 250,000 and £ 500,000, the Stamp Duty is thus 3% of the property value. For properties worth more than £ 500,000, the Stamp Duty is 4%.

To the above costs may be added £ 2,000-3,000 for the purchase of furniture in case the property is to be let furnished, and a similar amount for minor repairs and improvements in case the property is not sufficiently presentable. Furnished property will usually be able to command a slightly higher rent than non-furnished properties and will sometimes be easier to let. If you should decide to buy a property in need of major repairs and improvements you should, of course, expect considerably higher costs for such repairs and improvements. Moreover, the vacant periods - ‘voids’ - without any rental income will be considerably longer as a result of the longer time needed to carry out repairs and improvements. Of course, the upside of buying a property in need of major work that it can usually be purchased at a significant discount.

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Read about Sales Costs