property -real profit

[tali122]

ifts often heard of someone buying a property , say for �100k and selling at profit for �200k - but out of that 100k profit how much do you have to deduct for conveyancing, valuation ,stamp duty, removal costs and intrest paid on mortgage, plus any other costs .Is there a bencmark/guide % that should be deducted from the headline �100k profit figure?

[Ethel]

This is impossible to answer - the longer the mortgage, the more interest is paid! Removal costs depends on distance. Many developers don't move furniture in and out.

But in your example there would be no stamp duty (paid by buyer's only on properties over �125000).

Conveyancing can be fixed or per centage.

Expect to pay �800 to �1500 solicitors fees for the two transactions.

Sorry can't be more specific.

[flyciderman]

Ethel as normal has the best answer but you will also need to know how long they have owned the house?Have they spent money improving the value or is the profit just the normal increase in the market? I happen to think the only time you see the real vaule in the increase in the value of your home is you buy somthing smaller, or when you die and your children see the profit.

[jake-the-peg]

Remember too that if it's not your principal place of residence you have to pay tax on your profit.

This also seems to be often glossed over

[angeldraws]

Re jake's answer - you only have to move in for two weeks before selling to avoid paying capital gains tax - just make sure you change the utilities into your name for that period of time to prove it......

[pussycatt]

is that even if it is your second property A how does that work?