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Four Jurisdictions

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.

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Four Jurisdictions

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  1. Preliminary Costing Models for Property Transactions within the Jurisdictions of the British IslesRobert Dixon-GoughSharon BrownLand Management Research GroupUniversity of East London

  2. Four Jurisdictions England and Wales Scotland Northern Ireland Republic of Ireland

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

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

  5. Generic Model of Property Transactions

  6. Costing Model

  7. 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

  8. Stamp Duty – Republic of Ireland

  9. 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.

  10. 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).

  11. 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.

  12. 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.

  13. 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

  14. 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.

  15. 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.

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