When you’re looking for your dream home, you will have spent time working out your budget and finding properties that fall within your affordable range. However, there are many hidden costs associated with buying a house, and these range from legal fees and searches to the many different types of tax that must be paid.
Seeking legal advice before you commit yourself to a purchase can be very helpful in working out exactly how much you can spend on a property. You should be aware that the taxes that are payable on a house purchase are significant, and may well add a considerable amount to the cost of your house move.
Charges/Taxes You Will Pay When You Buy A House:
1. Stamp Duty. Stamp duty is a fee payable on any house purchased, and is usually set at 1% of the total purchase price. In some cases, for example if a property is more expensive, it can be 2% in Ireland.
2. Purchasing A Property: All You Need To Know About Tax. The Property Registration Authority, previously known as the Land Registry, requires that all transfers of property ownership must be registered. The cost for this depends on the value of the property, but it can be up to €800.
3. Legal fees and VAT. The legal fees you will pay to your solicitor are subject to VAT, and this is charged at 23%. This will depend upon the price agreed with your solicitor, but you should ensure that you are aware of the charges you may incur in this way.
4. Lender requirements. Lenders will require certain documentation in order to release your mortgage funds and secure your purchase. They will want their mortgage registered which will cost €175. They may also want additional items such as such as a Folio, with your name on the property title, which will cost €40.
Searches carried out on the property you are purchasing may also have VAT payable on them, and you should also consider the tax charged on the materials used to build the house if you are buying a new build. Look out for any unnecessary policies that you may be ‘advised’ to buy, and consider the VAT on these. You should speak to your solicitor about these charges.
Find Property Solicitors in Cork
Buying a property is a complex legal procedure and good legal advice is essential to the process. Contact Irwin, Kilcullen & Co Solicitors for a free consultation without obligation. Simply contact us online or call us today on +021 4270934 to talk to our experienced and helpful team