The costs of buying and selling property in the UK

Buying and selling property in the UK can be a complicated process, and it’s important to be aware of the costs involved before you start. Here is a guide to the costs you can expect when buying and selling property in the UK:

Costs of buying a property:

1. Deposit: When buying a property, you will typically need to put down a deposit. This is usually around 5-20% of the property’s value, but it can vary depending on the lender and the specific property.
2. Mortgage fees: If you need to take out a mortgage to buy the property, you will likely have to pay various fees, including arrangement fees, valuation fees, and legal fees.
3. Survey fees: Before buying a property, it’s a good idea to have it surveyed to check for any issues that could affect its value or your ability to live in it. This can cost anywhere from a few hundred to several thousand pounds, depending on the type of survey you choose.
4. Conveyancing fees: Conveyancing is the legal process of transferring ownership of a property from the seller to the buyer. You will likely need to hire a conveyancer or solicitor to handle this process for you, and their fees can range from a few hundred to several thousand pounds.
5. Stamp duty land tax: If you’re buying a property in the UK, you will likely need to pay stamp duty land tax (SDLT). This tax is calculated based on the value of the property, and the rates can vary depending on the purchase price and whether you’re a first-time buyer.
6. Land Registry fees: When you buy a property, you will need to register it with the Land Registry. This will involve paying a fee, which can range from a few hundred to several thousand pounds, depending on the value of the property.

Costs of selling a property:

1. Estate agent fees: If you’re selling a property, you will likely need to hire an estate agent to market and sell it for you. The fees for this service can vary depending on the agent and the property, but they typically range from 1-3% of the sale price.
2. Conveyancing fees: As with buying a property, you will need to hire a conveyancer or solicitor to handle the legal aspects of the sale. Their fees can range from a few hundred to several thousand pounds.
3. Energy Performance Certificate (EPC) fees: When selling a property, you will need to provide an EPC to potential buyers. This certificate rates the energy efficiency of the property and can cost anywhere from a few dozen to a few hundred pounds.
4. Capital Gains Tax: If you sell a property for more than you paid for it, you may be liable to pay capital gains tax (CGT). This tax is calculated based on the profit you made from the sale, and the rates can vary depending on your income and other factors.
5. Removal fees: Finally, if you’re moving out of the property, you will need to arrange for your belongings to be moved to your new home. The cost of this will depend on the distance you’re moving, the amount of stuff you’re moving, and whether you’re hiring a professional moving company or doing it yourself.

Overall, buying and selling property in the UK can be expensive, but being aware of the costs involved can help you plan and budget accordingly. It’s also worth noting that the costs can vary depending on the specific property, so it’s a good idea to get a detailed breakdown of the costs before you commit to buying or selling.

Best Wishes, Susan