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


Secondary actors:

• Valuer

• Building or Structural Surveyor

• Land Register

• Finance


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



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.


• 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).


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.


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.


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


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.

Four Jurisdictions

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