Four Jurisdictions
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Transcript of Four Jurisdictions
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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
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Four JurisdictionsFour Jurisdictions
England and Wales
Scotland
Northern Ireland
Republic of Ireland
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Generic Model of Property Generic Model of Property TransactionsTransactions
Three main actors:
• The Vendor/Purchaser
• The Estate Agent (Surveyor)
• Solicitor
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Generic Model of Property Generic Model of Property TransactionsTransactions
Secondary actors:
• Valuer
• Building or Structural Surveyor
• Land Register
• Finance
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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
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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
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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
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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%
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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.
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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).
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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.
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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.
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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
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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.
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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.