Will I have to pay stamp duty?

Stamp duty is a government tax on properties worth over £120,00. If the property costs between £120,00 and £250,00 the stamp duty is 1% of the property price. Properties worth £250,00 to £500,00 are taxed at 3% and those over £50,000 at 4%. If the property is a residential in an area classified as disadvantaged by the government no Stamp Duty Land Tax is payable if the property price is £150,000 or less. This is known as Stamp Duty Land Tax Exemption.

What are Restrictive Covenants?

A Restricrive Covenant is a legal obligation imposed in the deeds on a buyer by the seller of a property to do or not to do something. Some restrictive covenants are very simple, and "run with the land" intending to protect a neighbourhood from property owners cutting down trees or damaging property values. Others dictate exactly what the owner can or cannot do to the exterior of the property such as painting it a different colour or dictating exactly when christmas decorations may be put up. Others relate to issues of parking e.g outside a garage. Restrictions are normally put in place by the original developer and give the development a more standard appearance, protecting property values.

What are the Preliminary Enquiries?

Preliminary enquries are a standard set of questions asked of the seller's solicitor by the buyer's solicitor. This list will include:
BOUNDARIES: It is vital to establish exactly what the boundaries of the property are and who is responsible for the maintenance of hedges and fences.
DISPUTES: Are there any disputes relating to the property, e.g disputes with neighbours.
RIGHTS OF WAY: check whether there is any footpath or right of way through the property and on shared access with neighbours, such as a driveway.
SERVICES: check if the utilities reach the property through a neighbour's property or if these are shared with a neighbour.
PLANNING CONSTRAINTS: check if any alterations have met local planning requirements and that building regulation consent has been recieved.
RESTRICTIVE COVENANTS: whether the deeds contain certain forbidden specifics, such as keeping pets, painting the property's exterior or even on the use of Christmas decorations!
GUARENTEES OR INSURANCE POLICIES:
INCLUSIVE LIST OF CONTENTS: It is vital to establish and clearly list exactly what is to be included as part of the sale and what is to be removed.
LEASEHOLD: If the property is leasehold, check whether the seller is up to date with ground rent and service charges.

What is Transaction Protocol?

Transaction Protocol is a Law Society scheme operated by many, but not all solicitors in the conveyancing process. If the buyer's solicitor is operating this scheme, he will recieve a property information form, and a package from the seller's solicitor at the start of the conveyancing process. The package includes the draft contract; the title deeds; the property information form and fixtures, fittings and contents form outlining what is included in the sale and what will be removed.