| Costs associated with buying a house |
Buying a home is probably the most expensive purchase you will ever make. It's a long-term financial commitment and you will need a regular income. You will have to pay a number of fees and other expenses before the sale is final, and will have to make regular payments after you move in.
Mortgage Fees
Some mortgages have an arrangement fee. This is non refundable so even if your purchase doesn't go through you still have to pay this cost.
Survey Fees
These fees can range from £50 to £1000 depending on the level of detail. Most people go for the homebuyers report which costs around £300. If this flags up any major issues you can then upgrade to a more thorough survey. If the survey highlights that work needs to be done you should be able to negotiate this off the price of your home. Generally, this fee is non-refundable once the survey has been carried out on your behalf.
Solicitor Fees
Depending on where you are the opening quote will range from £600 - £1000. This will be for the basic service. If your purchase becomes complicated you will be charged for all extra work. Some solicitors will not charge you at all if your sale falls through, to encourage you to use them, but ensure you know this beforehand.
Search Fees
Local, Environmental and Water searches are carried out by your solicitor and can cost between £250 and £300 depending on the local council.
Bankruptcy searches are also carried out by your solicitor on the house you are buying to ensure that there is no previous history of bankruptcy or financial difficulties. This usually costs under £10. These fees will be added to your account with them and become payable when your sale is finalised.
Stamp duty Fees
Stamp duty is a land tax on the property you are buying and is paid to the government. There can be regional variations but the standard levels are as follows:
* Up to £125,000
* £125,001 to £250,000 - 1%
* £250,001 to £500,000 - 3%
* More than £500,000 - 4%
Source: www.vestamoney.co.uk
Posted: 1 Apr 2008 11:55:07
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