If you are thinking of buying a piece of property, you know very well that it entails certain costs – such as, of course, the cost of the property itself. But apart from this, there are other costs to contend with – costs and expenses such as the stamp duty tax, legal fees, the fee of valuation and surveying, and a lot more. Here’s a look at some of the major expenses you have to deal with:
The basic expenses when it comes to buying a home or a piece of property includes the deposit, the stamp duty tax, the valuation and surveyor’s fee, all the legal fees, and even the electronic transfer fee which is the cost of transferring the money (if you are acquiring a mortgage) from the lender to your solicitor.
The deposit is the most important expense, as this is the actual amount you pay for a portion of your property’s value. Generally, you would need a deposit of around 5 to 20 percent of the property’s price. Remember: the higher your deposit, the better your mortgage deal and the lower your rate of interest will probably be. The stamp duty tax is a tax you pay on property worth more than £125000. If you are buying a home worth £175000, for example, your stamp duty tax will be £1000. Another fee is the valuation fee, which is the mortgage lender’s assessment of the property’s value so they can determine how much they can lend. This expense can range from £150 to £1500. The surveyor’s fee is the assessment of the surveyor, and this is important to determine if the property has any issues. Survey costs range from £250 to 600.
Legal fees are also necessary, since you will need a licenced conveyance or solicitor to prepare all the legal requirements. This will cost from £500 to 1500. You may also have to prepare for the cost of removal, which can range from £300 to 600, although you can also carry this out yourself.
Costs of acquiring a mortgage
If you are planning to acquire a mortgage, there are additional costs as well, as mortgage specialists like Flag stone will confirm. These mortgage fees may include a fee for booking, a fee for arrangement, and a fee for mortgage valuation. A fee for booking can be from £99 to 250, while a fee for arrangement (or arrangement fee) can be around £2000 or less. There is also the mortgage valuation fee, which can be approximately £150 or more. One tip: the experts like Flag stone say it is better to settle your mortgage fees right away or upfront instead of adding them to the mortgage you have acquired, because then, you will have to pay interest for them as well.