What it Actually Costs to Buy a Home
When you buy a property it’s easy to think it’s just a case of finding enough money to cover the cost of the property itself, but what else do you need to budget for?
When buying and selling property, you’ll need a good solicitor to handle the legalities including property searches and transferring mortgage funds. Depending on how much legal work is involved expect to pay around £1,000 – £2,500.
You pay Stamp Duty Land Tax when you purchase a new home and the amount varies depending on whether you have bought a home before and the price of the property you are buying. Find out how much you’re likely to pay using the Government’s Stamp Duty calculator.
While not technically a mortgage fee as such, you will need to budget for the deposit you require to purchase your property, usually between 5% and 20% of the value of the property you are purchasing. You may also find that your mortgage is subject to valuation fees and product fees, so always check with your lender for any additional costs involved.
When buying a home you need to obtain a survey of the property, completed by a surveyor. Responsible for flagging any major issues with the property, they are well worth the few hundred pounds they cost.
Estate Agent Fees
If you’re selling your existing home, as well as purchasing a new one, you’ll find that you will need to pay a fee to your estate agent upon completion of the sale. If you’re selling your home and would like to use an agency that passes on the savings it makes to its customers we’d be delighted to assist you in both selling and purchasing your new home.
Remember to factor in moving your belongings to your new home. Whether you’re planning on hiring a self drive van or getting a removal company in to do it for you, shop around for a quote that works for you.
In order to obtain a mortgage you will need buildings insurance as a minimum, which insures the property itself against damage. You’ll be looking at around £100 a year for such a policy, which you can also combine with your contents insurance policy.
Remember you’ll also need a contingency fund to fix any issues the survey picked up on, along with unexpected expenses as they arise.