House buying it’s not a
one egg omelette
Although
many of us have an understanding of having to pay a solicitor when we buy our
home, many of us forget all the additional costs that soon mount up if you have
not accounted for them.
So let’s
start at the very beginning a very good place to start, the deposit. This is by
far the biggest cost and many mortgage lenders want at least 10% of the
purchase price up front. The more you put down the better the interest rate you
are likely to be offered. If you don’t
manage to find the 10% but still get a mortgage at a more expensive rate the
lenders may also impose that you get mortgage indemnity insurance.
The Legal Bit!
When you
have found your property and have a provisional offer you need the services of
a solicitor or licensed conveyance to begin the legal process of buying your
home. This cost can vary depending of the work needed to be done and the
property value.
Stamp Duty Land Tax
(SDLT)
In the UK
when there is a transfer of property or land and where the amount paid is above
a certain threshold H M Revenue and Customs require you to pay a fee before
completion of the transfer of ownership can take place.
The Survey
If you are
going for a mortgage your lender will ask you to pay for a mortgage valuation
report to confirm that the property is worth the amount you have asked to
borrow.
For an
additional cost you may choose to have a homebuyers report or full structural
survey. This cost can range from around £300 to £1000.
Mortgage Arrangement
Fees
To process
your mortgage application mortgage companies charge a fee which can be around
£500 or more.
Cover the things you
care for
Building and
contents insurance is a must and many mortgage lenders will insist on the
buildings insurance as part of any offer.
Mortgage Protection
Insurance
If you
cannot work due to illness or you lose your job this insurance will meet your
monthly repayment until such time you find work or return to work.
CHAPS Fee
Some lenders
charge about £30 to cover CHAPS (Clearing House Automated Payment System) to
arrange the telegraphic transfer of funds to your solicitor to complete your
property purchase.
Search Fees
Your
solicitor may recommend about 5 searches which can cost around £300.
A Sure Catch
Make sure
you catch the biggest star of them all and keep it safe in your pocket because
remember through all this process you will be in the star hands of David Jordan Estate Agents an estate agent that
excels in all areas of the house buying process and will take you every step of
the way.
The time is
now David Jones Estate Agents is here to
make sure you have a pocket full of starlight whether buying, selling or
letting.
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