If you are lucky enough to have a deposit for a new home and even the offer of a mortgage, you are in an enviable position indeed. many people would cut off their right arm to be where you are now. It has probably been a hard slog to reach this point, and the reward is almost within your grasp. But have you considered all of the other costs? There are many other bills to pay, and though they are not excessive on their own, they do add up to a large sum. As the saying goes, “they’ll nickel and dime you to death.”
If you don’t want to be caught out by the extra charges, read on. The best way through the process is to educate yourself. Here are the costs of buying a home that you might not have considered.
You must employ a conveyancing solicitor to handle the legal side of the purchase. You won’t get a mortgage without one. If you are lucky enough to buy a home for cash you don’t have to use a lawyer, but you could be a fool not to. The bank or Building Society will not release any funds until the legal side of things is complete.
The solicitor will conduct searches with the relevant agencies to make sure your house doesn’t sit on a mine shaft, etc. They must also check with the land registry to make sure that no-one else has a claim on the property. Sometimes a creditor will lay claim to it, and it is a complication with which only a professional can deal.
They will acquire the deeds when the sale is complete and transfer them into your name. This process is incredibly complicated and not for the amateur. The solicitor could charge from five to fifteen-hundred pounds.
If the house costs more than £125,000, you will have to pay stamp duty. It is one percent on that value, but higher bands cost more. The highest rate is four percent on houses worth more than £500,000.
When you find the perfect place in an estate agents in Holt, your lender will insist on a professional survey. The surveyor will check for any problems and complete a report. Even though you might know a little about the structure of the house, only an expert can spot warning signs of serious problems. They will also note minor things such as rotten window frames and loose guttering. Think how horrific it would be to buy a property that was subsiding. Always get a professional opinion even if you are paying cash. It will cost in the region of three to six-hundred pounds.
You might be moving from a rented house and have much stuff to shift. It is best to use a removal company so that there are no problems. Most of them offer a packing service if you need it too. The cost will depend on how much there is to move and the distance to travel. Expect to pay between seven-hundred and two- thousand pounds.
As you can see, the extra costs add up. Everybody has to pay them; just include them in your initial budget, and you should be fine. I hope you are happy in your new home and that it is worth all of your hard work.