There are a number of once off fees that you will need to pay when you buy a home and it very important that you know what these fees are so that you can make an informed decision.
In fact, when people purchase a home, they must also bear additional costs. For example, the buyers may have to pay for legal fees, stamp duty, Stanton Movers, and other expenses before they can finally move into their new home. As a result, being aware of all potential costs ahead of time could be useful in making a budget.
All lenders require properties to be valued in order to determine if the property is actually worth the amount you are paying for it. The cost of a valuation depends on the value of the property and some lenders will not even charge a fee because they are trying to get you to take out a mortgage with them. It’s also crucial to understand your mortgage terms (click here to learn more) before buying a home. You need to know how long it will take you to repay the loan, the interest rate, and what kind of fees you will have to pay. In most cases, the cost of a valuation can be anywhere from one hundred and twenty-five pounds.
It is recommended that you have your own in depth survey done on the property to see if there are any types of structural damages. There are three types of surveys: The Valuation that the lender usually has done, the Homebuyers report which can cost between 250 and 500, and the Building survey which can cost as much as 1,000. The builder guarantees new properties, but older properties may have some problems and it is advisable to have someone check before you buy.
There is absolutely no way around this one! You will have to hire a solicitor who can handle the legal side of buying a property. Everyone charges a different amount, so you will need to shop around to find the best deal. Many solicitors charge a flat rate, but there are a lot of them that will charge you a percentage of the cost of the property.
Stamp duty is a tax, charged for properties above 125,000. If the home you want to buy is priced between 125,000 and 250,000, you will end up paying 1% of the property price. Properties between 250,000 and 500,000 will cost 3% and over 500,000 will cost 4%.
If you want to buy a property in an area that the government has classed as ‘disadvantaged’, then you are not required to pay stamp duty. If you need to find out more about Stamp Duty Land Tax, please see the HM Revenue & Customs article Tax on Buying Property.
Land Registry Fee
The Land Registry is a government owned company that looks after the registers of all registered properties in Wales and England. They charge a fee for transferring the register to the new owner. Here is a breakdown of the fees payable according to the value of your property.
|Price ( )||
Fee ( )
|Up to 40,000||
|40,001 – 70,000||
|70,001 – 100,000||
|100,001 – 200,000||
|200,001 – 500,000||
|500,001 – 1,000,000||
|1,000,001 and over||
Often overlooked when considering a house move, home insurance prices can differ based on your postcode area. Before you move house, compare home insurance quotes online to see how much extra it may cost compared to what you currently pay.
The above are the main fees that are charged. Then there is the Local Authority Search fees, which will set you back around 60, other search fees will be about 70, the Estate Agent’s fees, the cost of house hunting, removal costs and insuring the items you are moving.
Over and above these costs, there is also the cost of putting your pets in the kennels, disconnection fees, different insurances, reconnection fees, having your mail redirected, change of address notice and carpet laying may also be an expense that you might not have considered.
As you can see, there are many fees involved with the buying of a new property and you need to be aware of all the costs involved in order to be well prepared.