Four Jurisdictions
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Transcript of Four Jurisdictions
Preliminary Costing Models for Preliminary Costing Models for Property Transactions within the Property Transactions within the Jurisdictions of the British IslesJurisdictions of the British Isles
Robert Dixon-GoughRobert Dixon-GoughSharon BrownSharon Brown
Land Management Research GroupLand Management Research GroupUniversity of East LondonUniversity of East London
Four JurisdictionsFour Jurisdictions
England and Wales
Scotland
Northern Ireland
Republic of Ireland
Generic Model of Property Generic Model of Property TransactionsTransactions
Three main actors:
• The Vendor/Purchaser
• The Estate Agent (Surveyor)
• Solicitor
Generic Model of Property Generic Model of Property TransactionsTransactions
Secondary actors:
• Valuer
• Building or Structural Surveyor
• Land Register
• Finance
Generic Model of Property Generic Model of Property TransactionsTransactions
BUYING OR SELLING A RESIDENTIAL PROPERTY.
Land Registry
Completion
Estate Agents
Vendors
Estate Agents
Solicitor
Mortgage
exchange of contract
Valuation
registered non-registered
Search
Valuation
Costing Model Costing Model
Costing Model
England & Wales Republic of Ireland
(Euro)
Agents Fees 1.5 – 3.00% + VAT 1.0 – 2.5% + VAT
Solicitor’s Fees £500 + VAT (plus dispersements)
1% of purchase price (plus dispersements)
Lender’s fees (includes Arrangement, Legal, and Valuation fees)
£800 + VAT 1,000 +VAT
Surveyor’s Fees £400 - £750 (+ VAT) for properties up to
£100,000
1,200 (VAT)
£750 - £1,000 (+ VAT) for properties above
£100,000
Local Authority Search £75 Not known
Land Registry £170 325
Stamp Duty – United KingdomStamp Duty – United Kingdom
• Exempt for properties under £60,000
• 1% for properties over £60,000
• 3% for properties over £250,000
• 4% for properties over £500,000
Stamp Duty – Republic of IrelandStamp Duty – Republic of Ireland
Price in Euros First Time Buyers Other Owner Occupiers
Up to 127,000 Nil Nil
127,001 – 190,000 Nil 3.00%
190,001 – 254,000 3.00% 4.00%
254,001 – 317,000 3.75% 5.00%
317,001 – 381,000 4.50% 6.00%
381,001 – 635,000 7.50% 7.50%
Over 635,001 9.00% 9.00%
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
• Great variations in house prices.
• Property transactions costs in London and the south-east (plus other isolated pockets) can be between £15,000 - £20,000.
• Greatest single cost is the Stamp Duty, followed by Estate Agent fees, which are based upon the selling price.
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
• The average commission (average house price £167,000) paid by a seller in the London and the south-east is now £2,500.
• Based on an average commission fee of £1.74% (Countrywide Assured, 2003).
• For a home with a selling price of £225,000, the fees would be £3,915 + £685 VAT).
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
Stamp duty.
• To purchase a £275,000 house, the stamp duty will be £8,250.
• But a £225,000 house will only pay a stamp duty of £2,250.
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
Solicitors fees based on the sale of a property of £225,000 and purchase of a
property of £275,000 and to include Searches, Land Registry fees, etc.
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
Quote by:
• Shoosmith’s (property-conveyancing-online.co.uk): Total fee of £1,764
• Stuart & Co Solicitors Online (britishlaw.net): Total fee of £1,199
• Conveyancing 24-7 (about-mortgages.co.uk): Total fee of £1,449
True Cost of Moving in True Cost of Moving in England and WalesEngland and Wales
Surveyors:
• Valuation: £85 + £250 for a Homebuyers Report if cash buyer BUT £85 + £180-£200 through a mortgage company.
• Building Surveys: up to £750 (depending upon the size of house) for a basic survey, possibly doubling for a full structural survey.
Preliminary Costing Models for Property Preliminary Costing Models for Property Transactions within the Jurisdictions of the British Transactions within the Jurisdictions of the British
Isles - CONCLUSIONIsles - CONCLUSION
• There are differences between the processes and costings.
• This is not surprising given the origins and roots of property transactions within the British Isles.
• The main differences are procedural.
• The cost differences are not significant apart from Stamp Duty.