When buying a property there are additional costs to take into consideration other than the agreed purchase price.
Document duty, legal fees, court, greffe, registration and bond fees must also be factored in and are detailed below.
Please note that the realty of the property typically represents 95 per cent of the agreed purchase price (this figure will be detailed in your Conditions of Sale).
The costs involved in purchasing a property are calculated as a percentage of the purchase price of the realty (the total price less the cost of personalty).
1. Document Duty
Document Duty is payable to the States of Guernsey, it is variable and is charged as a percentage of the value of the realty:
1.1 where the price of the realty is up to and including £150,000 the Document Duty will be 2%;
1.2 for dwellings valued between £150,001 – £250,000 Document Duty will be 2½%;
1.3 for realty valued £250,001 and over Document Duty will be 3%; and
1.4 for realty (i.e., land/vineries etc) other than dwellings Document Duty will be 3% whatever the value.
You should note that Document Duty is not a graduated charge. If the realty is valued at £225,000 you would have to pay Document Duty at the rate of 2.5% on that whole amount and not 2% on the first £150,000 and 2.5% on the remaining £75,000.
2. Legal Fees
Legal fees are now calculated on a time spent basis and an indication of cost can be given by approaching Advocates directly.
3. Court, Greffe and Registration Fees
A charge of approximately £182.50, depending on the length of the document to be registered, is payable to the States of Guernsey in respect of Court, Greffe and Registration fees.
4. Bond Fees
If you are borrowing part, or all, of the purchase price, you will also have to pay for a bond in favour of your lender. The cost of a bond can be calculated as £7 for each £1,000 borrowed plus £240.50 for a single debtor.
So, if one person borrows £150,000, the cost will be £240.50 plus 7 times 150, which is £240.50 plus £1,050 which totals £1,290.50. Document Duty is included in this amount and is charged at the rate of 0.5%. On a bond of £150,000 of the total charge of £1,290.50 you will be paying £750 Document Duty.