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An overview the UK residential
conveyancing process
Priya Jobanputra2015
LOG ONhttp://parslowsjersey.com/news-
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conveyancing-process/
• AML•Sale pack• Contracts explained • Purchasers Searches•Mortgages•Exchange of Contracts•Completion and Post Completion•Stamp duty•When is the higher rate Stamp Duty Land Tax charged•Taxing envelopes
AML
• Passport or driving licence • Utility bills within the last three months x 2• Evidence of source of funds – Profile form
• No registration card required to buy in the UK
Sale Pack – what will I receive?
• Sellers Property Information form (SPIF)
- Boundaries
- Disputes and complaints
- Insurance claims
- Occupiers
- Service providers
• Sellers Leasehold information form (SLIF)
- details of managing agents
- Ground rent/ service charge
• Fixtures and Fittings Form
• Official copy entries and title plan
• Contract
Contracts explained Residential
• Standard Conditions of sale • Title guarantee • Deposit – how is it to be held• Exchange/ completion • Special conditions
Purchasers searches
• Local Authority Search• Water and drainage search• Environmental• Coal mining , Tin, Claystone
Miscellaneous • London underground search• Cross rail /TFL• Canal and River Trust
Purchasers searches
• Caveat emptor – Let the buyer beware • Physical Inspection • Neighbours• Boundaries • Check the fixtures and fittings list
Mortgages
• Acting on both sides
• Gifts
• Reporting issues
Exchange of Contracts
• Title report
• Building insurance
• Approving contract
• Deposit
• Legally binding
• Exchange on any week day
• Simultaneous exchange and completion
Completion and Post Completion
• Completion Transfer moniesDelay / Failure to complete Vacant possession on day of completion Any day
• Post Completion Submit SDLT online RegistrationTitle OCE
Stamp duty
Stamp duty land tax (SDLT) - Residential rates
Purchase price SDLT payable
First £125,000 Zero
£125,001 to £250,000 2%
£250,001 to £925,000 5%
£925,001 to £1.5 million 10%
The portion above £1.5 million 12%
Example
Residential property purchase price £600,000
Payable£0 - £125,000 £0£125,001 - £250,000 (@2%) £2500£250,001 - £600,000 (@5%) £17500
Total stamp duty payable £20,000
When is the higher rate Stamp Duty Land Tax (SDLT) chargeable for non-natural persons (residential)• 15% higher rate charge
• Exceptions to higher rate stamp duty:- Re-development - Substantial refurbishment - Demolition – 1 or more residential units or commercial
Example
• A company purchases a chargeable interest in a dwelling with the intention of refurbishing and reselling the property. The interest costs £2.5 million. The company is unable to find a buyer following the renovation and makes the commercial decision to find a tenant for the short term prior to testing the market again in the future. The higher rate charge does not apply and SDLT is payable at standard rates. The intention at the effective date of the transaction are key to establishing whether or not the higher rate charge applies.
Contact your accountant for further information.
Taxing Envelopes
• Annual tax on envelope dwellings (ATED)
Chargeable amounts for chargeable period 1 April 2015 to 31 March 2016
Contact your accountant for further information.
Property value Annual charge
More than £1 million but not more than £2 million £7,000
More than £2 million but not more than £5 million £23,350
More than £5 million but not more than £10 million £54,450
More than £10 million but not more than £20 million £109,050
More than £20 million £218,200
Questions Contact:
Carl ParslowEmail: [email protected]: 01534 630 530
Priya JobanputraEmail: [email protected]: 01534 630 530