United Kingdom » The Purchase Process

For professional people that find themselves with a higher budget for accommodation, there is a lot of property available. Be warned that property is a lot more expensive and lot smaller than you may expect. Prices for studio flats start at about £120 per week. Prices for flats start at around £135 and go as high as £900 per week.

These are main stages you will go through when buying a home

• Work Out How Much You Can Afford
• Get a Mortgage Agreement in Principle
• Choose Your Home
• Hire a Solicitor
• Make an Offer
• Have a Survey and Valuation Done
• Do Any Necessary Legal Work
• Arrange for Life Assurance
• Finalise Your Mortgage
• Exchange Contracts
• Organise Your Move
• Finalise Your Contract Details
• Move In

There are a number of tasks which your solicitor may carry out on your behalf and their fees vary - it is usually best to obtain a quotation first. Your solicitor will usually charge more for a Leasehold purchase or sale because there are simply more documents to look through and information to source. Where a mortgage is involved, it is usual for the same solicitor to act on behalf of the Lender (securing the monies for instance), some Lenders prefer a two or more partner firm, make sure this work is included in your quotation and that your solicitor will be able to act for the Lender where necessary. Solicitors' fees are normally plus VAT and can range from £450.00 to £950.00 for a standard transaction. Remember a sale and purchase is two transactions.

Disbursements are a list of expenses your solicitor incurs during your sale or purchase. These expenses are normally made up of the following: Stamp duty is a government tax levied on the purchase of properties. The tax rate depends on your purchase price. Many property purchases under £150,000 within the Boroughs of Southwark and Lambeth now fall under Disadvantaged Areas Stamp Duty Exemption which means than you may not have to pay any Stamp Duty on these purchases. Otherwise the tax is calculated as follows:

• Property (other than shares) Rate £60,000 or less Nil,
• £60,000 - £250,000 1% of the whole amount
• £250,000 - £500,000 3% of the whole amount
• £500,000 or more 4% of the whole amount.

Land Registry Fees are incurred in obtaining copy documents, carrying out land registry searches and registration of the new owner. The registration scale of charges will be posted shortly. Local Authority Search Fees are incurred when your solicitor applies to the property's Local Authority for departmental checks on your proposed purchase. The charges vary from one Authority to the next, but expect to pay around £150.00. Bank Transfer Fees occur as a result of your solicitor moving large sums of money from their clients' account, to pass on a deposit or to pay for your property on moving day. These are usually around £50.00 Other Costs and Expenses may be incurred depending on your purchase. Your solicitor should be able to advise you of these.