Five property fees to watch out for
First-time buyers have enjoyed a stamp duty holiday, paying nothing on properties under £250,000 but this will end on 24 March. After that, properties between £125,000 and £250,000 will be subject to 1% stamp duty.
Properties between £250,000 and £500,000 are charged at 3%, above £500,000 4% and £1 million plus 5%. So, stamp duty for a £200,000 property would be £2,000.
Usually between £300 and £500 for a £200,000 property.
Up to £1,000, depending on the price of the property. Usually around £600 for a £200,000 property.
Lender's arrangement fee (normally added to the mortgage)
Typically around £499 but it's not uncommon to have a fee of £1,000 or more.
First-time buyers need to bear in mind they will be liable for costs they haven't incurred in the past, such as repairs to the property and kitting out the property with white goods, carpets and curtains," says Ray Boulger, senior technical manager at mortgage adviser John Charcol.
A catch-all phrase that can range from assessing the price of a property or vehicle before offering it for sale or the net worth of assets in an investment portfolio to the prices of shares on a stock exchange.
A hugely unpopular tax paid on property and share purchases. Stamp duty on property is levied at 1% for purchases over £125,000 (£250,000 for first-time buyers) which then moves up at a tiered rate. For property between £125k and £250k you pay 1%, then 3% from £250k up to £500k and then 4% from £500k to £1m and then 5% for properties over £1m. But unlike income tax, which is “tiered” and different rates kick in at different levels, stamp duty is a “slab” tax where you pay the rate on the whole purchase price of the property. On shares, stamp duty is charged at a flat rate of 0.5% on all share purchases. Figures correct as of May 2011.
A charge some brokers (and, increasingly, lenders) make for arranging your loan or mortgage, either as a flat fee or a percentage of the amount you wish to borrow. In order to look ultra-competitive in the best-buy tables, some mortgage lenders will offer mortgages with an attractive low rate and recoup any losses with a hefty arrangement fee.