News0 min ago
Buying And Selling Property
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What are the costs involved in buying and selling property? We already own our own home and I'm selling my mother's house. A friend in a similar position has told me that any other property will be liable for Stamp Duty and that I'd be better off renting her house out. I'd rather sell so I don't have the emotional attachment, and buy a small terraced property to rent out. What other costs can I expect to incur please?
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It's the purchaser who pays stamp duty. Full guide here:
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Other costs of buying here:
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When selling, the first cost you'll probably encounter is paying for an Energy Performance Certificate. (It's a legal requirement to have one before you place a property on the market):
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Then you'll probably have estate agent's costs to pay. (I write 'probably' because you don't actually need to use an estate agent. You can do the job yourself but that won't give you access to websites like RightMove.co.uk, where most house hunters will be looking).
Traditional high street estate agents charge commission on sales, meaning that you only pay when you sell (but you could end up paying quite a lot). Web-based services such as Purple Bricks charge a flat fee to put your property on the market (which is usually considerably lower than you'd pay in commission) but you have to pay them whether they sell your house or not.
The only other costs involved in selling are legal fees. While it's possible to do the conveyancing yourself, most people engage the services of a legal professional to do the job. Licensed conveyancers can be a lot cheaper than solicitors but it seems hard to find one these days (because solicitors seem to buy them out to reduce competition).
https:/
Other costs of buying here:
https:/
When selling, the first cost you'll probably encounter is paying for an Energy Performance Certificate. (It's a legal requirement to have one before you place a property on the market):
https:/
Then you'll probably have estate agent's costs to pay. (I write 'probably' because you don't actually need to use an estate agent. You can do the job yourself but that won't give you access to websites like RightMove.co.uk, where most house hunters will be looking).
Traditional high street estate agents charge commission on sales, meaning that you only pay when you sell (but you could end up paying quite a lot). Web-based services such as Purple Bricks charge a flat fee to put your property on the market (which is usually considerably lower than you'd pay in commission) but you have to pay them whether they sell your house or not.
The only other costs involved in selling are legal fees. While it's possible to do the conveyancing yourself, most people engage the services of a legal professional to do the job. Licensed conveyancers can be a lot cheaper than solicitors but it seems hard to find one these days (because solicitors seem to buy them out to reduce competition).
PS: When selling a house that's not your main residence you can fall foul of the rules on Capital Gains Tax. However there's no CGT to pay on a property you've recently inherited (and not substantially improved) because Inheritance Tax (if any) will already have been paid. CGT is only payable on a gain in a property's value.
Thanks all, very useful info. I'm not sure why my friend was so adamant on the Stamp Duty - he bought a house under sealed bid and I'm not sure what he paid for it, so may well have had a substantial amount to pay. I'm only planning to buy something under 100K so don't think it will apply from what I've seen. I don't want the stress of DIY conveyancing etc so will have to bite the bullet on legal and Estate Agent fees. Luckily I'm under the CG Tax threshold, as my lawyer tells me I have an allowance from when my father died too.
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