The stages of acquiring property in the UK: the underwater payment rocks
After the purchase transaction is complete, you will need to pay the state a fee as payment of expenses related to the acquisition. Now the legislation set the bar at a rate of 4 per cent of the transaction amount. You do not need to understand all of the transactions and other legal tricky cases, all of this is the prerogative of the agent or any other person who may be your confidant, plus the validity of the amount is verified by conveyance solicitors. If you are working with an agent you will have to pay up to 5 percent of the total cost of the purchased object, while conveyance solicitors, whose participation in the deal is obligatory, are typically paid up to 0.5% of the purchase. The cost of the premises is fixed in the contract, and the payment obligations of the seller and the buyer are listed there.
In order to take the construction of the house on their own land, it is necessary to communicate with the local authorities. Once administration gives go-ahead for the start of construction, you will need to draft a future housing, and then send it to the Ministry of Environment.
All in all, you can hardly call the pricing policy for the property in the UK to be democratic. In the center of London to purchase a one-room you will need around £1ml. The further you go from center, the lower the prices will be, but no less than £220,000 according to the offers as of March, 2016. In other localities, e.g. Liverpool or Manchester Greater area the prices are way more moderate – this is where 1 bedroom apartments start from as low as £70,000.
Before the acquisition of the object it is necessary to hire professionals that conduct an inspection of the premises and the adjoined buildings. At the end of this procedure you will receive a formal opinion, in which the state property will indicate that you need to repair and how much it will cost. For this paper, you will need to shell out up to several thousands pounds (although it doesn’t apply to the brand-new property of the higher price segment, that typically come fully furnished). This conclusion is then required for the registration of the mortgage, because the bank will need to make sure that the value of the object actually corresponds to its real condition.
The next step is a contract. It is notarised and sold under the close supervision of lawyers. After the transaction, your lawyer will ask you to provide all the necessary documentation; plus you may be asked to confirm the nature of the funds you are using to acquire the property. Then, in order to become full owner of the object, you will need to register all the documents at the Land Registry; and once this procedure is completed, you can consider yourself to be the landowner.