Free House Agent - Buying Property Advice
There are several important things to consider when you are thinking about buying Property/Land. Below we have tried to list the most important points to give you a head start.
Remember this is just advice based on personal experiences, for more detailed information please visit the web sites listed at the end of each section.
1. What is stamp duty?
Stamp duty land tax (SDLT) is often charged when we as consumers buy property or land.
If the property or land is being bought for residential use (none comercial) then stamp duty is liable if, the price of the property or land exceeds £125,000. This figure rises to £150,000 for comercial properties and land.
See the table below for a list of threasholds:-
| Residential | Commercial | |||
| 0% | £0 > | < £125,000 | £0 > | < £150,000 |
| 1% | £124,999 > | < £250,000 | £149,999 > | < £250,000 |
| 3% | £249,999 > | < £500,000 | £249,999 > | < £500,000 |
| 4% | £499,999 > | £499,999 > | ||
If you are buying a property in an area designated by the government as 'disadvantaged', you don't pay any stamp duty land tax if the purchase price is £150,000 or less.
For more stamp duty info go to, http://www.businesslink.gov.uk
2. Mortgages
There are several types of mortgage:-
1) Fixed
2) Variable
3) Tracker
4) Interest Only
Before you decided on which type you must look at the practicalities of your situation. If your require the security of regular payments each month that will not rise then a Fixed Mortgage deal is probably for you.
If the market signs are that the interest rate will fall and you financial position is such that you can afford to take the risk of an unexpected interest rate rise then maybe a variable or tracker Mortgage will suit.
Once you have chosen a deal ask yourself a few questions Eg,
If the interest rate were to rise could I afford this mortgage deal?
Is the length of the mortgage deal right for my circumstances?
Other finacial implications to consider:-
1) Hidden Fees
2) Arrangement Fees
3) Valuation Fee
4) Admin Charges
5) Higher Lending Charges
6) Early Repayment Charges
7) Legal Costs
Please see, www.moneyextra.co.uk www.charcolonline.co.uk www.fool.co.uk for more info
3. Conveyancing
A Simple Guide to Conveyancing
1. Once you have instructed you solicitor you must wait to receive the pre-contract package from the seller's solicitor. Once done your solicitor can apply for the local authority search, and any other searches. (at worst this can take several weeks).
2. You can get your solicitor to raise any additional enquiries.
3. Once your solicitor is satisfied that there is nothing wrong property report will be prepared and send to you.
4. You must then sign the contract and mortgage deed and provide the required deposit, a completion date can then be agreed. Exchange contracts can then be exchanged with the seller's solicitor. Congratulations! At this point the seller is legally bound to sell you the property.
5. The final accounts can then be prepared.
Also take heed of any market warning of interest rate rises/falls. Remember only the Bank of England actually knows, so be guarded about any advice you receive.
4. Freehold/leashold Link in the following
For Free advice about Leashold and Freehold properties go to,
www.lease-advice.org www.leaseholdguidance.com
We Free-House-Agent Ltd are not liable to any actions undertaken, based on the above information.
For more general information on Buying selling and Renting property go to the home and comunity page in the www.DirectGov.gov.uk website.
