As an example, we took the cost of a real 2 bedroom apartment - £ 880,000
STEP 1 APARTMENT RESERVATION
£: A Client pays a £ 5000 reservation deposit by credit/debit card or bank transfer from a personal account.
Required documents: a copy of passport and a copy of a recent utility bill to prove home address.
STEP 2 APPOINTING SOLICITORS
£: The cost of legal services for the entire process is approximately £ 3,000 - £ 4,000
Usually, solicitors will be asking for 50% of the fee to be paid upfront.
STEP 3 EXCHANGE OF CONTRACTS
£: The cost of required legal searches is approximately £ 600 - £ 1000.
Prior to the day of the exchange a Client will need to transfer an amount of 10% of the agreed property price less an initial deposit paid (in this example, it is £83,000) by bank transfer from the Client’s account to their Solicitor’s bank account
STEP 4 SECOND PAYMENT
£: After twelve months from the day of exchange a Client will have to transfer another 10% ( in this example, it will be £88,000) by bank transfer from the Client’s account to their Solicitor’s bank account
STEP 5 THIRD PAYMENT
£: After eighteen months from the day of exchange a Client will have to transfer another 5% ( in this example, it is £44,000) by bank transfer from the Client’s account to their Solicitor’s bank account
STEP 6 COMPLETION
£: Upon completion, payment of the remaining balance of 75% (in this example, it is £ 660,000) will be required. If a Client needs a mortgage it is advised to start the process of obtaining a mortgage offer six months before the completion.
ADDITIONAL COSTS ON COMPLETION
- Stamp Duty Land Tax ( £34,000 if this is the only property for the Client or £60,400 if it is an additional property)
- Legal Disbursements (approximately £1,000)
- In a case when the Сlient is using mortgage facility valuation of the property will cost circa £ 1,000
- Bank's admin commission for issuing a mortgage loan and broker's fee will be between 0.5% to 1%
STEP 7 OWNERSHIP
£: The owner will have to pay a Service charge annually covering various building maintenance costs. In this case, the Service charge per annum is £4,200 for an apartment that is 80 sq mt (861 sq ft.) size. Annual Ground Rent - £650
Disclaimer! All calculations in this material are approximate.If you want to make an accurate calculation of your purchase plans сontact UK Property Advisors on +44 (0) 755 310 9657. We are a reliable partner and an expert in residential real estate investments in London