Purchasing a home is undoubtedly the biggest purchase you will ever make and you will want to make sure it is right for you. Moving house whether it be as a first time buyer or a home mover is a pricey affair, with survey, solicitors and moving costs all needing to be factored in.
Here are the top four costs to bear in mind when purchasing a property.
- Stamp Duty: Stamp duty land tax is a tax which anyone buying a property over a certain cost has to pay. This rate can vary depending on the type of property you are looking to buy. Currently, in 2016, you pay no stamp duty on anything below £125,000 which is great if you live in areas where house prices are reasonable as it means you might not have to pay any stamp duty at all. You will pay 2.5% on anything between £125,000 and £250,000 and 5% on anything over £250,000. If for example you were buying a property for £265,000, you would pay nothing on the first £125,000, you would pay 2.5% the money between £125,000 and £250,000 and you would pay 5% on the remaining £15,000.
- Solicitors Fee’s: When moving house you will need a solicitor or conveyancer to carry out the legal side of things when buying and/or selling a house. These fees can vary but will usually cost in the region of £500 - £1000 for the solicitors time and work.
- Survey: There are various survey’s available depending on what type of property you are buying and how in depth you want to look. Of course the more in depth you go, the more expensive the survey is. The cost of these surveys are related to the cost of the property you are intending to buy.
- Condition Report: This is the most basic survey and is most suitable for when the house is in good condition. This will double-check that everything is ok. These cost between £150 - £300 depending on the cost of the property.
- Home Buyers Report: This is a more detailed survey and will highlight any problems such as damp, any necessary repairs. This survey is suitable for modern and older properties providing they are in reasonable condition. This kind of survey costs between £350 - £950 depending on the cost of the property.
- Building Survey: This is the most comprehensive survey you can have, which looks extensively at the structure and condition of the property. It will list defects, advise on repairs and check throughout the entire property thoroughly. This survey is suggested for older properties or those that are in poor condition. These extensive survey’s cost between £500 - £1,300 depending on the overall cost of the property.
- Product Fee’s: When taking out a mortgage it is always best to discuss your options with a mortgage or financial advisor. Many mortgages out there will also include a product fee, meaning you will be required to pay an amount to take out the mortgage, this can vary and is usually between £250 - £1500.