Costs to Factor in When You Buy a Home
There are many factors to consider when you wish to buy a home, some of which include survey fees, arrangement fees, stamp duty and lender valuations; and these are before you have picked up the keys. Once in, further costs can include reconnecting the electrics, gas and water.There are many costs to factor in.
The more important ones are detailed below:
Property Surveys
This is strongly advised and there are three types:
(1) the valuation survey, often obtained for the lender and the costs can vary dependant on the price of the property. Many mortgage lenders will not charge a valuation fee as an incentive for you to obtain a mortgage with them;
(2) The Homebuyer’s Report, which costs between £250 to £500; and (3) Building or Structural Survey, which is in the region of £1,000 + 20% VAT. It is especially pertinent you have a newly built property surveyed in case of any faults, which can be completed by the builder before you move in.
Arrangement Fees
Mortgage lenders often charge a fee to arrange the mortgage, but this will be detailed in the small print. However, many lenders will waive this fee as a goodwill gesture to obtain your service.
Conveyancing/Legal Fees
Costs will vary. They usually charge a fixed fee, but some solicitors take a percentage of the house price, often half a percent.
Stamp Duty
This is an additional tax on the price of your property, and is charged on properties above £125,000. If your new home price varies between £125,000 to £250,000, the charge is usually 1% of the property price. For first time buyers, and until 24 March 2012, there is no stamp duty for new homes up to and equal to £250,000. For properties between £250,000 to £500,000, the tax is 3% and 4% for any property over £500,000. If you buy a home with Barratt Homes, they will pay the stamp duty for you.
Land Registry Fee
This current fee is charged dependent on the price of the property, and everyone is charged this fee by the Land Registry Government Department to transfer the registry to a new owner.
The prices vary dependent on the cost of the property.
Local Authority Search Fees
Primarily carried out to find out if there will be any new properties or roads to be build nearby.
Search Fees/Disbursements
This costs around £70 and covers bank transfer fees, the coal authority, land charge, companies searches, commons and index map.
The cost of buying a home however does not end there. Furnishing a property also costs money, especially if you want to decorate and add new flooring. But don’t let this put you off looking at and finding suitable houses for sale and buying your perfect property. If you are looking for a new home, many new home builders, including Barratt Homes, provide financial support to make your dream home a reality.
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