An overview the UK residential conveyancing process Priya Jobanputra 2015

An overview the UK residential

conveyancing process

Priya Jobanputra2015

LOG ONhttp://parslowsjersey.com/news-

media/parslows-news/powerpoint-presentation-overview-uk-residential-

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: carl.parslow@parslowsjersey.comTel: 01534 630 530

Priya JobanputraEmail: Priya.Jobanputra@parslowsjersey.comTel: 01534 630 530