It's no secret that when buying real estate in England, you will have to make several additional payments, the exact amount of which depends on the specific conditions of the transaction.
As an example, let's consider the purchase of a residential house or apartment with payment of the full price. For greater clarity, we have compiled a table of all accompanying payments, which intentionally did not directly include the cost of the object and the stamp duty, as its calculation will be presented separately.
Expenses before the entry into ownership rights
Service Cost Comment
Payment for the services of a lawyer or law firm £2,500 – 5,500 Depends on the terms of the transaction, for example, the number of participants in the transaction, freehold or leasehold
Independent real estate inspection and appraisal £900 – 2000 Reveals structural defects of the purchased object
Analysis of the location of real estate in England £400 - 700 Search for problems in the surrounding area that affect the purchase price
Land cadastral fee £90 – 950 Registration of property rights
Commission for bank transfers £40 - 50
Total: £3930 - £9200
Note: Our calculation did not include the most popular option among the British - buying a house with a mortgage https://prian.info/kz/great-britain/england/whitwell/rent/houses/ . The interest rates of banks for mortgage lending in the United Kingdom are small and on average are about 3.5%.
Therefore, if you have been living and working in England for a long time, you can consider the profitable option of buying British real estate on credit. However, in this case, the number of preliminary costs will increase by the amount from £200 to £2,500, which will be spent on the bank's assessment of the object and additional services.
Expenses after taking ownership
Service Cost Comment
Real Estate Insurance £300 Annually
Moving costs £50 - £1,500
Council tax £700 - 2500 Annually, the amount depends on the area
Total: £1050 - £4300
Thus, additional costs, excluding stamp duty before and immediately after the purchase of a house or apartment in Great Britain, will be from 4,980 to 13,500 pounds sterling.
You can learn more about other taxes that property owners in England must pay in our article.
How is stamp duty considered in England?
To the general joy of the queen's subjects, the law provides a benefit for those who buy their home for the first time. If its value does not exceed £300,000, stamp duty is not charged, if the purchase amount is between £300,001 and £500,000, then stamp duty is not charged for the first £300,000, and the tax rate on the balance is 5%.
From April 2021, increased stamp duty rates of 2% will be introduced for foreigners wishing to purchase real estate in Great Britain. Therefore, in our table for calculating the stamp duty, instead of the usual two columns - the usual rate and the rate for additional housing - two more gradations appeared: for residents of the country and foreigners.
Table for calculating the stamp duty
Value of real estate in Great Britain Standard rate Rate for additional housing
foreign residents* foreign residents*
up to £125,000 0% 2% 3% 5%
£125,001 to £250,000 2% 4% 5% 7%
£250,001 to £925,000 5% 7% 8% 10%
£925,001 to £1,500,000 10% 12% 13% 15%
more than £1,500,000 12% 14% 15% 17%
* from April 2021.
Even with all the additional payments, real estate in England does not lose its appeal for those who plan to move to the hospitable British land or are simply looking for a suitable way to preserve and increase their wealth.