Costs and fees associated with buying a property can be under
estimated and in some cases overlooked so here we consider what a
purchase budget should include.
An estimate of costs are
on average £10,000 (As per Which Magazine), although this figure varies
depending on the value of the new property and that’s excluding the
deposit by the way.
Avoid any surprises by starting with a clear picture of all the fees you’re likely to incur, here’s a checklist to assist.
- Stamp
Duty – This is a tiered tax – the more expensive the property, the more
you pay. Due to the pandemic, temporary changes are in place, meaning
Stamp Duty does not apply to the first £500,000 of a property purchase.
This rule ends on 31 March 2021 - Legal fees – The cost of
conveyancing – that’s the paperwork that secures the legal transfer of
property – varies depending on whether you’re buying a freehold or
leasehold property (expect leasehold to cost you more). Tip: When
seeking quotes, check the final price includes VAT, search fees and Land
Registry fees. - Valuation fee – If you’re taking out a
mortgage, your lender will insist on a valuation to ensure that you’re
not paying over the odds for your new home. - Mortgage fees – Some mortgage deals include an arrangement fee or an application fee (or both).
- Insurance
– Most lenders insist on buildings insurance as part of the terms of
the mortgage. It covers the cost of repairing your home in the event of
an insured loss such as a flood, fire or falling tree. - Survey
fees – Different types of surveys are available. A basic option should
be a few hundred pounds, while the most comprehensive survey can cost
thousands of pounds. - Removals – Removal costs vary
depending on how far you’re going and how much you have to move.. The
website comparemymove.com estimates it costs £800 to move belongings
from a three-bed house to a property 50 miles away. Add a further £250
for packing and materials. - Redirecting mail – If you’re
planning on redirecting your mail to your new address (not such a bad
idea in this era of identity fraud), Royal Mail charges £80 for 12
months.
The team at MARTIN & CO can ensure your move
goes smoothly. If you need advice or have any questions about the moving
process, please get in touch. We’re here to help.
