The Cost of Buying a House

Buying a house is a big commitment, one you will probably spend years saving for. Whilst you will already be budgeting for some of those costs, there are lots of other fees that you might not have thought of.

To help you be as prepared as possible, we’ve compiled a quick list of costs you might encounter when buying your new home.

1. Deposit

Your deposit is an initial payment of money towards your new home. The amount depends on a variety of factors including the price of the property and what type of mortgage you are able get. Usually a 10% deposit is required but it can vary between 5-20%

2. Valuation and Mortgage Fees

If you are obtaining a mortgage then the mortgage lender will assess the value of the property to establish how much they are prepared to lend to you. Valuations can cost between £150-£1,500. Some lenders might not charge you for this and it will depend on the type of mortgage product you select. If a fee is payable then you can pay it upfront or arrange for it to be added to your mortgage. Be sure to speak to your mortgage adviser about what works best for you.

3. Surveyor’s fee

The lender’s valuation is not a full structural survey and so it might not identify all the repairs or maintenance that might be needed. Before you buy a property, we would recommend that you have it checked by a surveyor as it is important to know if there are any problems before you buy.

Surveys range from a basic report costing around £500 to a full structural survey which can cost up to £1000.00 or more. Paying for a comprehensive survey could save you money on repairs in the future.

4. Legal fees

You’ll normally need a solicitor or licensed conveyancer to carry out all of the legal work when buying and selling your home.

Legal fees can vary depending on the value of the property, the type of property you are purchasing and whether they are any complex features which need to be investigated.

5. Stamp Duty (SDLT) and Wales Land Transaction Tax (LTT)

Stamp Duty is a tax you pay on any residential property over £125,000, the price of which goes up with the property’s value. It will also depend on a number of other facts such as if you are a first-time buyer/purchasing an additional home/UK resident. To calculate your SDLT/LTT liability, use the below link to take you to the HMRC’s tax calculator.

https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

Or read our blog Stamp Duty Fees

6. Moving costs

You may require the assistance of a removals company on the day of completion. The average removal cost ranges from £500 to £2,000+.

Our Residential Conveyancing Team are here to assist you should you have any queries regarding the purchase of your new home whether you are a seasoned buyer or purchasing for the very first time. If you could like any advice or further information in respect of the matters discussed above then you are welcome to speak with a member of our team!