Home Finance 4 Things to Keep in Mind About Stamp Duty When Buying Home in UK

4 Things to Keep in Mind About Stamp Duty When Buying Home in UK

It is not a daily activity to purchase residential property. If you are living in the United Kingdom, you would consider a number of factors before you finally select an option. It is not smart thinking to buy a home with a hasty approach. This is because the cost is high and making the wrong decision would be damaging.

Using a stamp duty calculator provides you with the correct sum that would be paid. It is not feasible to rely on assumptions. For instance, if you want to opt to live in a quiet area and you purchase a home in a noisy location, it would not be the correct decision. Proper planning is needed if you want to buy the correct home. Take your time when you are looking at different options.

Even if you think that a particular apartment or house is perfect for you, do not take the decision until you have performed comparisons. The goal is to get your hands on the best option. You may find a perfect piece of property with a high price. If you survey for more options and perform comparisons, the possibility of getting a good alternative with an economical price is there.

Here are 4 things you should consider before buying a house in UK.

Price and Implication of Stamp Duty

In the UK, stamp duty is applied on residential property after it has been purchased. This is not a flat figure and the amount depends on some components. If you are purchasing a home for the first time and no residential property has been purchased in the past, no duty would be applied if the price is below £ 125000. This is the minimum amount for the application of stamp duty. Once the price goes above it, the buyer would have to pay the duty sum. 

  • Lack of awareness is the key problem when you have to pay the stamp duty. This calculator is very simple to use and you only have to enter the price of property. The good thing is that you get to know about the exact stamp duty sum. 
  • It is important to check the price of the property carefully before you sign an agreement. The stamp duty is applied at a certain percentage and a flat amount is not charged. Thus, the payable sum depends on the property price. As the price would increase, the stamp duty amount would rise as well.

 

Location is the key

The location of a residential option has to be checked properly before you finalize an alternative. At times, people are only concerned about the price factor and do not check the location properly. Once they start living, they figure e out the problem. The situation becomes hard to handle when you are living in a location you do not like. In a nutshell, do not be hasty when you are finalizing the location of a home in UK. Checking the neighborhood and talking to people would be helpful for you.

  • Some locations in UK are noisy as they are near market places. If you are not comfortable with living in such a place, search for quieter options.  It all depends on the priorities and preferences that an individual has. If you know what you are looking for, getting a home in UK would not be a very hard task.

The covered area

The covered area of a house depends on the number of residents that have to live. If you have a large family, you would have to look for a home with more covered area. Similarly small families seek studio or two bedroom apartments. Some localities in the UK are very expensive. Hence, even if you are seeking a small two bedroom apartment in these places, the price would be quite high. In an overall manner, the price of a particular home category would differ from one location to the other. Buyers need to check all parameters before they make a purchase.

Facilities Nearby

If you have senior citizens in the house, your residence should not be far away from hospitals and clinics. In emergency situations, it becomes necessary to reach a hospital in the shortest possible time span. Similarly, if you have school going kids, try to buy a home near schools. You need to make a list of your requirements and be priorities before you spend your money.

Take your time and do not adopt a hurried approach. Communicating with real estate options is a very helpful alternative. These professionals know all the localities inside out. It is a fact that they charge commission but the stress of searching for a house is eliminated.

Conclusion

For anyone, buying a dream home is one of the biggest milestones. However, you cannot make the correct decisions without having a clear budget. The budget of the house also decides the stamp duty amount. The stamp duty amount rises when a house in UK has a high price. You should consider all the important factors before buying a home. Some important ones include location, facilities present nearby and total covered area.

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