We reveal the hidden costs of buying a house

  • August 22, 2018

We reveal the hidden costs of buying a house

You have already saved up for a big enough deposit, your mortgage is secured and your offer has been accepted. You are nearly there. But before that, it is advisable to make a checklist of the added costs involved with a property purchase. To that purpose we have rounded up a list of fees, taxes and costs you will have to cover before you move into your new home.

Mortgage Fees

Consult with your mortgage provider about the fees you need to deposit for your application to be processed immediately. On top of your deposit, you will need to consider any fees and charges that your mortgage provider will demand to process your application. Mortgage adviser fees vary from anywhere between £99 and £1,999 and can be charged as valuation fees, booking fees and mortgage arrangement fees. Many mortgage providers will give you the chance to add these costs to your loan instead of paying them up front. That will help you save money but it will be added as an interest rate on your loan.

Stamp Duty

The purchase price will ultimately determine the stamp duty you are going to pay. The purchasing property tax status has recently changed to encourage first-time buyers who will be exempted from stamp duty if their future home is of £300,000 or less. For those buying with a much higher budget, stamp duty payment for a home costing up to £500,000 will be reduced, paying only five % on the portion of the house price above £300,000.

Surveyor’s Fees

Surveyor’s fees are bound to add up but putting your safety first is worth all the money. Getting the property checked by a surveyor is crucial to calculate whether the property needs repairs or any other extra work. There are many types of surveys based on property characteristics and also your personal choice regarding the funds you are willing to dispose of. Hiring a surveyor will also give you the chance to re-negotiate the price if you discover that the property needs extra work.

Legal Fees

Setting aside funds for a good solicitor early on in the buying process can prove beneficial to your chances of securing your dream property. A good solicitor will do all the paperwork for you, checking the legal side of the transaction, as well as carry out searches regarding the property surroundings.

Property Fraud Fee

If you have hired a savvy solicitor he will probably tell you that you will need to pay for an extra property fraud fee to protect the sale transaction from fraud.

Electronic Transfer Fee

Since large transactions are in place, be prepared to pay a same day transfer fee through your solicitor to secure the smooth completion of the sale.

Phone Line & Broadband Costs

Before you are actually settled into your new home, you need to make sure you have arranged a new landline and internet connection. Setting up broadband costs vary from £0 to £60.

Moving Costs

Arranging for a professional moving company to do the moving for you, will offer you a stress-free process. Professionals often charge between £400 and £600. If you wish to move valuable items it’s best you also get removal insurance.