How much should you allow for Purchase Conveyancing Costs?
As solicitors who act for many clients buying and selling houses in the Scottish Borders Hastings Legal are well placed to give you the very best advice.
We offer a premium service at reasonable rates – city style at country prices!
If your offer fails we don’t charge you
We are proud of our NO KEY NO FEE Service. If you are not successful in offering for the property, or the worst happens, and for some reason you can’t conclude missives (exchange contracts) and the transaction cannot proceed, we will waive our fees for the legal work that we have carried out on your behalf. You will only pay for any necessary outlays incurred. This unique Hastings Legal service is a valuable safeguard and means that you do not incur costs for unsuccessful transactions.
Speed and Efficiency
If we are your appointed solicitors we guarantee a same day service and that your purchase will be progressed as soon as possible. We will do everything that we can to ensure that missives are concluded. See our brief guide detailing the conveyancing process or take a look at an overview of what you can expect from Hastings Legal as your property solicitors.
Purchase Cost = Solicitor’s Fee + VAT + Outlays
The property disposition will need to be registered and there will be an outlay payable to the Registers of Scotland for this. In addition to the Registration Costs of Disposition the following outlays could apply depending on the property value and your particular situation.
TAX
Unfortunately, for the purchase of more expensive properties, the Tax payable often accounts for the lion’s share of the legal bill.
LBTT – The Scottish Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax (SDLT) on 1st April 2015.
Please note the rates are banded and in Scotland nothing is paid on the first £145,000. Over that amount is only charged on the element above the exempt level. For example, a purchase at £180,000 would be 2% on £35,000 = a charge of £700. Likewise higher rates are charged only on the slice of the price within the relevant band. See the current LBTT rates below. If you are a first time buyer you may be eligible for First Time Buyer Relief worth up to £600.
LBTT Rates
ADS – The Additional Dwelling Supplement – If you already own a property
After 1st April 2016 an additional LBTT levy (the “ADS”) will be charged on any purchase of a second property such as buy-to-let or a second home over the price of £40,000. In January 2019 this ADS levy was increased from 3% to 4%.
In general there is an exemption for buying a home as your main residence IF you are selling and live in your existing main residence. Watch you don’t get caught out though as, if you have pre sold and moved to rented and have another property (perhaps a buy to let), you may be caught and the costs can be significant. This is a complex area and you should explain your situation and ask your purchasing solicitor if it will apply BEFORE you commit to buy.
Married couples, those in a civil partnership and cohabitants (those living together as though married, including same-sex cohabitants), along with their dependent children (children under 16, including adopted children), are treated as one economic unit for the purposes of the application of the ADS. Click here for guidance on ADS
© Hastings Legal. Updated January 2019
If your offer is unsuccessful -don’t worry – we won’t charge you legal fees!No Key = No Fee
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