The procedure for buying a property in England

The act of sale is an official document that describes the object of sale as accurately as possible. 

The act contains information about the seller, the buyer and the lawyers who service the transaction.

If real estate in the UK is purchased on credit, the buyer is required to conduct an independent assessment of it. A licensed appraiser checks the condition of the property and determines its true market value.

This is important information for the bank, since the acquired object acts as collateral for a lending transaction. If it turns out that the real value of the property is significantly lower than stated, the buyer has the right to seek a reduction in value.

The exchange of contracts is the English analogue of the contract for the transfer of a deposit. The buyer and seller exchange signed contracts. The buyer reserves under the contract on deposit a deposit in the amount of at least 10% of the value of the purchased object. In case of failure of the transaction, the buyer loses this deposit.

The final transaction consists in the obligatory presence of a notary, seller, buyer and lawyers from both sides. At the time of the transaction, the remaining amount under the contract is paid. Also on the day of the conclusion of the final contract of sale, the seller is obliged to pay the Stamp Duty.

Lawyers deal with the registration of property rights. After payment of the Stamp Duty, a special stamp is affixed to the transaction documents.

Further, the papers are transferred to the cadastral register (Land Registry). Information about the new owner is entered into the register.

Stamp duty. Calculated on a progressive scale.

• Objects worth up to 125 thousand pounds are not taxed.
• If the property costs from 125 thousand to 250 thousand pounds, the fee will be 2%.
• If the property costs from 250 thousand to 925 thousand pounds - 5%.
• If the property costs from 925 thousand to 1.5 million pounds - 10%.
• If the property costs from 1.5 million pounds -12%.

• State duty for registering a transaction in the cadastre - 0.1% of the amount of the contract of sale.
• • Municipal fee - 200 pounds.
• • Tax on the change of ownership of immovable property. The tax amount depends on the transaction price and ranges from 40 to 750 pounds.

• Notary services - 0.5% of the price of the object.
• An independent appraisal for mortgage lending costs between £500 and £1,500.

• Real estate agency — from 1.5% to 4%.
• When applying for a mortgage, the services of a financial broker range from 1% to 1.5% of the loan received.