Preliminary Costing Models for Property Transactions within the Jurisdictions of the British Isles Robert Dixon-Gough Sharon Brown Land Management Research Group University of East London

Four Jurisdictions England and Wales Scotland Northern Ireland Republic of Ireland

Generic Model of Property Transactions Three main actors: The Vendor/Purchaser The Estate Agent (Surveyor) Solicitor

Generic Model of Property Transactions Secondary actors: Valuer Building or Structural Surveyor Land Register Finance

Generic Model of Property Transactions

Costing Model England & WalesRepublic of Ireland (Euro) Agents Fees1.5 – 3.00% + VAT1.0 – 2.5% + VAT Solicitor’s Fees£500 + VAT (plus dispersements) 1% of purchase price (plus dispersements) Lender’s fees (includes Arrangement, Legal, and Valuation fees) £800 + VAT1,000 +VAT Surveyor’s Fees£400 - £750 (+ VAT) for properties up to £100,000 1,200 (VAT) £750 - £1,000 (+ VAT) for properties above £100,000 Local Authority Search£75Not known Land Registry£170325

Stamp Duty – United Kingdom Exempt for properties under £60,000 1% for properties over £60,000 3% for properties over £250,000 4% for properties over £500,000

Stamp Duty – Republic of Ireland Price in EurosFirst Time BuyersOther Owner Occupiers Up to 127,000Nil 127,001 – 190,000Nil3.00% 190,001 – 254, %4.00% 254,001 – 317, %5.00% 317,001 – 381, %6.00% 381,001 – 635, % Over 635, %

True Cost of Moving in England and Wales Great variations in house prices. Property transactions costs in London and the south-east (plus other isolated pockets) can be between £15,000 - £20,000. Greatest single cost is the Stamp Duty, followed by Estate Agent fees, which are based upon the selling price.

True Cost of Moving in England and Wales The average commission (average house price £167,000) paid by a seller in the London and the south-east is now £2,500. Based on an average commission fee of £1.74% (Countrywide Assured, 2003). For a home with a selling price of £225,000, the fees would be £3,915 + £685 VAT).

True Cost of Moving in England and Wales Stamp duty. To purchase a £275,000 house, the stamp duty will be £8,250. But a £225,000 house will only pay a stamp duty of £2,250.

True Cost of Moving in England and Wales Solicitors fees based on the sale of a property of £225,000 and purchase of a property of £275,000 and to include Searches, Land Registry fees, etc.

True Cost of Moving in England and Wales Quote by: Shoosmith’s (property-conveyancing- online.co.uk): Total fee of £1,764 Stuart & Co Solicitors Online (britishlaw.net): Total fee of £1,199 Conveyancing 24-7 (about-mortgages.co.uk): Total fee of £1,449

True Cost of Moving in England and Wales Surveyors: Valuation: £85 + £250 for a Homebuyers Report if cash buyer BUT £85 + £180-£200 through a mortgage company. Building Surveys: up to £750 (depending upon the size of house) for a basic survey, possibly doubling for a full structural survey.

Preliminary Costing Models for Property Transactions within the Jurisdictions of the British Isles - CONCLUSION There are differences between the processes and costings. This is not surprising given the origins and roots of property transactions within the British Isles. The main differences are procedural. The cost differences are not significant apart from Stamp Duty.