What are the costs of buying a house?

October 27, 2020 2:02 pm

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Deciding to buy a new home is an exciting time but remember that when you’re completing your budgeting, there is more to consider than simply how much you buy the property for. The key to a successful transaction is to have a comprehensive budget with everything accounted for. Here are some of the costs involved:

Leasehold – If the property you are buying is a leasehold, there will be an additional fee which often stays the same no matter the property cost.

Searches – Done by a solicitor, searches are highly recommended for identifying any issues with a property before you buy it.

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Stamp Duty – Between now and the end of next March, stamp duty tax has been waived for homes under half a million pounds. From March 2021 they resume at 5% for homes in this price bracket. For more details on claiming a Stamp Duty Refund, contact Sentient, a provider of Stamp Duty Refund.

Legal fees – A solicitor or conveyancer will charge either a set fee or a percentage of the property’s value.

Land Registry – This government department holds details on all properties registered in England & Wales and there is a fee for registering the new ownership of a property.

Mortgage Fees – Most mortgages will come with fees for arranging and charges for organising the loan. There are mortgages available fee-free but they tend to have higher rates.

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Valuation fee – On applying for a mortgage, the lender will want a full valuation of the property to check it is worth the asking price.