In recent years, more and more overseas buyers have been buying property in the UK. However, due to a lack of in-depth knowledge of the UK property market, many buyers do not have a good understanding of the costs of buying a UK property. Therefore, today our UK property experts will give you a brief overview of the buying costs to consider when buying a UK property.

　　The costs of buying a UK property include aspects such as house price, stamp duty, solicitor's fees, mortgage costs and other miscellaneous fees. We will then go into more detail about these costs.

　　1. Stamp Duty

　　Stamp duty refers to a tax levied on various commercial legal certificates in the UK. It is levied at a proportionate rate on deeds of assignment of houses and land for rent, stock transfer deeds and life insurance policies. Stamp duty is payable to the Inland Revenue when purchasing a property, whether you are a local resident or an overseas person, in order for the transaction to be recognised by the government and is the main tax on property purchases in the UK.

　　If it is the world's first owner-occupied home and the price is less than £50w, the first £25w can be claimed as a deduction and the remainder is subject to 5% stamp duty. If you are buying a home that is not your first home, there is a 3% stamp duty charge.

　　For overseas buyers, including those who do not live in the UK and those who have not lived in the UK for 183 days, an additional 2% will be charged, but if they move to the UK within a year of purchase and live there for 183 days, the overseas buyer can claim a full refund.

　　2. Solicitors' fees

　　When buying a property in the UK, whether you are a local or expatriate, you must hire a UK licensed solicitor to complete all legal matters. The solicitor's duties include handling all legal documentation and document review arising from the transaction process. In addition, the solicitor's fees depend on the closing price of the house and generally range from £1,500 - £3,000.

　　3. Loan fees

　　Loan fees include loan application fees and internal bank approval fees etc. For tax residents outside the UK, some banks also offer loan services and can apply directly. Generally, the fees for these services range between £1,500 - £2,500.

　　Home buyers are advised to choose a loan broker to help upgrade the documents and select the most suitable product for them. Loan brokers usually charge a fee of 1.5%-3% of the loan amount, but this is a cost that is difficult to avoid. Due to the complexity of bank loans, it can be difficult to figure out the various ways of doing things in a short period of time. Choosing a good loan broker can make it easy for homebuyers to complete the loan process.

　　4、Other miscellaneous fees

　　Land survey fees, property registration fees and other miscellaneous fees: generally around 0.2% of the price of the property.

　　The above points are the buying costs when buying a property in the UK, if there are still unclear places you can consult Lanza Real Estate!