From the moment you find your dream property and sit down with a financial advisor, to finally buying a photo frame to hang in your new home, the costs associated with buying are numerous and sometimes unexpected.
We’ve made things a little simpler for house hunters here at Leon House who can now benefit from our amazing Triple Offer – a contribution your stamp duty, legal fees and moving costs – but we know that the wider costs associated with buying a home can still be a bit of a minefield at times.
So with that in mind, we’ve put together a simple guide covering some of the less obvious costs involved when buying a property. While it can be complex and confusing at times, here we debunk all the property jargon and give you the knowledge to enter a property search with your eyes open to all the financial factors.
When you apply for a mortgage on your dream property, the lender will need to conduct a survey to evaluate whether they can lend the fee being asked by the person selling the property, also known as the vendor. Often described as a property valuation fee, the lender may or may not pass this cost onto you as the buyer. This will usually cost a few hundred pounds.
As well as lender’s survey, many property hunters also opt to invest in their own independent survey to discover whether there is anything they should be aware of as a buyer. Depending on the age and condition of the property, the price of this could be anywhere from £200 to £1000 for more detailed reporting. As a rule, newer properties don’t require the intensive and more expensive surveys within this scale.
Solicitor fees are one of the upfront costs that home buyers save up for. Most first-time buyers need a solicitor or licensed conveyor to handle all of the legal paperwork involved with buying a property. On average this usually costs around £1000. Your solicitor will also run a local search for you, normally costing around £250-£300 – a helpful process as this should flag any problems in the area, such as local building plans.
This will be a fee applicable to any property being sold in the UK – the amount of which will vary according to the property value. As the price of the property increases, the percentage applicable in stamp duty increases too – fees for various price points currently stand as the below:
● 1% – property upto the value of £250,000
● 2% – upto £333,000
● 3% – upto £500,000
● 4% – upto £938,000
● 5% – upto £1,125,600
You can find out the exact stamp duty that you would be required to pay on your chosen property by checking out the Money Advice Service’s Stamp Duty calculator.
Electronic Transfer Fee
This is the cost which covers the solicitor transferring your money to the seller, through a more secure process than is usual in bank transfers. This fee is around £50.
Legal Registry Fee
To ensure you are legally named as the owner of your new property, the Government Land Registry records will need to be updated. The fee for this process is tied to property prices but can range from £50 to £1000.
Once you’ve navigated the path to completion you may finally be getting excited about moving into your wonderful new home. However, the costs of moving house don’t stop just yet. For example, the cost of van hire or enlisting the help of a hiring firm, may cost several hundred pounds.
Buying household essentials and new furniture, as well as setting up home insurance and your broadband, are all costs which are easy to forget when moving into a new home. And if you’re not moving into a brand new property, you may also need to undertake a project of decorating or replacing carpets to bring your home up to scratch.
More on the Leon Triple Offer
The Leon House Triple Offer is now available for buyers looking to purchase a home in this fantastic building in Croydon. Contributing to the costs of Stamp Duty, your legal fees as well as your costs associated with moving, this offer provides you with a much-needed helping hand when you need it most. Get in touch with a member of the Leon House team to find out more.