When saving towards a property it is easy to lose sight of all other costs other than the deposit. Below are a list of costs that you should now bear in mind.
Arrangement fees for mortgages have risen considerably over the past two years and can cost up to a few hundred pounds depending on the selected product. It is worth being precautious and setting aside at least £250-500. However, many lenders will allow you to add this fee on to your total mortgage so that you do not have to pay the amount upfront. However, bare in mind any extra interest charges.
STAMP DUTY LAND TAX
Stamp Duty Land Tax is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property. Below is a table for residential land and property. At the moment First Time Buyers only pay Stamp Duty on properties over £250,000.
Purchase price/lease premium or transfer value
Up to £125,000
Over £125,000 to £250,000
Over £250,000 to £500,000
Over £500,000 to £1 million
Over £1 million to £2 million
|Over £2 million from 22 March 2012||7%|
|Over £2 million (purchased by certain persons including corporate bodies) from 21 March 2012|
A Solicitor or Conveyancer will sort through a majority of the legal documents, they will check ownership of the property and also contact the Land Registry database on your behalf. They will also ensure that the property is not subject to any planning developments and liaise with the buyer, seller and lender to arrange the transfer of the price and details between parties.
Typically the legal fees can cost up to £500+. Other fees such as Land Registry and cost of checks may be additional.
There are three types/categories of surveys that you can choose when buying a house. Each survey costs a different price.