Costs to consider when buying your new home

October 31, 2014

Land Registry Fees

In Northern Ireland there are two types of registration system. These are Land Registry and Registry of Deeds.

Once you complete your purchase of your new property we will carry out registration formalities at the Land Registry or Registry of Deeds on your behalf. This involved registering you as the new owner of the property along with any Mortgage you have obtained. Fees may vary depending on whether the property is registered in the Land Registry or Registry of Deeds. Once we receive the Title Deeds from the Vendors Solicitor at the start of the conveyancing process we can confirm the fee that will be due.

Land Registry Fees in Northern Ireland increased on 8th September 2014. The Registration Fee depends on the Value of the Property Please see the current fees below:

Value                                                            Fee (Electronic Lodgement)
£20,000 or less                                                               £80
£20,001 to £80,000                                                      £120
£80,001 to £100,000                                                    £160
£100,001 to £150,000                                                  £220
£150,001 to £200,000                                                  £310
£200,001 to £250,000                                                 £355
£250,001 upwards                                                         £445

There is an additional charge of £90 for registering your Mortgage on the property. Your lender will also require the Land Registry to provide a Certificate of Charge which will cost £20. This will be placed with the Title Deeds of the property.

Stamp Duty Land Tax

Once your purchase has completed you are required to submit a Stamp Duty Land Tax Return to HMRC within 30 days. This Return must be submitted even if you do not have to pay any Stamp Duty Land Tax unless the chargeable consideration is less than £40,000. If your Return and any payment due is not made within 30 days you will incur a penalty. As part of our post-completion formalities we will prepare your SDLT Return for your approval and also submit your Return and payment to HMRC.

Please see current Stamp Duty Land Tax Thresholds for Residential Property

Purchase Price/Lease premium/                         SDLT Rate

Transfer Value

Up to £125,000                                                            Zero
Over £125,000 to £250,000                                        1%
Over £250,000 to £500,000                                       3%
Over £500,000 to £1 million                                       4%
Over £1 million 5%                                                         5%
Over £2 million from 22 March 2012 7%                  7%
Over £2 million (purchased by certain persons, including corporate bodies) from 21 March 2012 15%
15%
If the value is above the payment threshold, SDLT is charged at the appropriate rate on the whole of the amount paid.

As an example if you are purchasing a property for £160,000 with a Mortgage the cost would be:

Transfer: £310

Register Charge: £90

Certificate of Charge:£20

Update Land Certificate to show you as new owner: £20

Stamp Duty Land Tax – 1%of purchase price £1600

TOTAL: £2040

A full Guide to Land Registry Fees in Northern Ireland can be found at
http://www.dfpni.gov.uk/lps/land_registry_fees_order_2014_certified_true_copy__2014.pdf

More Information on Stamp Duty Land Tax can be found at
http://www.hmrc.gov.uk/so/rates/rates-apr11-mar12.htm

Please note; the content of this article is for information purposes only and further advice should be sought from a professional legal advisor before any action is taken.