Guide to Buying Property in Alderney
Alderney Properties... Properties on the island can vary from a modern one bedroom apartment, to a comfortable modern bungalow, to a grand Georgian town house to a most stylish Victorian Fort. We have a wide variety of properties to suit all tastes within St Anne or with spectacular sea or country views. We can offer excellent family homes in some stunning locations set within the Bailiwick of Guernsey, yet at Alderney’s affordable prices.
- The Offer Once an offer is put forward, it is always helpful to know whether it is unconditional, or dependent upon survey, bank finance or the sale of another property etc. This offer is submitted to the Vendor and once accepted, standard Conditions of Sale are then drawn up by our office.
- The Deposit The deposit is 10% of the purchase price. This amount is held in our company’s property sales account with interest accruing to the purchaser once the registration has taken place at the Alderney Land Registry.
- The Conditions of Sale This standard document is drawn up in our office (an example of one can be forwarded on request). The Purchaser signs first and places the deposit. The Conditions are then signed by the Vendor. It is only at this point that the contract becomes legal and binding upon both parties.
- Transfer Document and Proof of Identity The Transfer Document (Form B) needs to be signed in front of the Alderney Land Registry or a practicing solicitor or Notary Public. Recent regulations require Vendors and Purchasers to complete a Form C or Form D as proof of identity. This form also requires a copy of your passport, a recent utility bill and two passport size photographs.
- Stamp Duties — Conge, Document Duty and Registration Fee These duties are paid by the purchaser on completion. Conge, payable to the States of Alderney is 2%. Document Duty, payable to the States of Guernsey is on a grading scale charged by value. 2.25% payable on the part of the value up to and including £250,000, 3.50% payable on the part of the value between £250,000 - £400,000, 4% payable on the part of the value between £400,000 - £750,000, 4.25% payable on the part of the value between £750,000 - £1,000,000, 4.50% payable on the part of the value between £1,000,000 - £2,000,000 and 5.50% in excess of £2,000,000.
The Registration Fee for all transactions amounts to 0.05% of the Realty with a minimum of £60 and a maximum of £500.
- Forfeit of the Deposit Once the Conditions of Sale become binding (as explained above) the deposit is non-returnable. Unlike England, our Channel Island system of Conveyancing is quite positive. Should the Purchaser renege, the deposit is passed to the Vendor, and should the Vendor renege, the deposit is returned to the Purchaser together with a like sum from the Vendor.
- Transfer of Funds To ensure that completion can take place at the due time, we request that the balance of the monies (the full purchase price less the ten per cent deposit already lodged plus the applicable stamp duties) are transferred by telegraphic transfer to be as cleared funds in our Property Sales Account by the working day prior to completion. A standard letter is forwarded well in advance of the completion.
- Completion This is the date that both parties have agreed for the transfer taking place. It is imperative that completion of the property takes place on or before this agreed date or the default clauses come into play. Shortly after completion the Purchasers are sent the new Land Award confirming the property that has been transferred.
- Mortgages It may be advantageous to borrow monies for the purchase. If this is the case, the bank or finance company would simply enter this as an Adverse Interest on completion of the property. Our office would be pleased to put forward the names of our local banks, independent financial advisors and chartered accountants who are always ready to pass on their local knowledge and guidance.