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Important Information for Buyers

 

When you buy a property or move home, there will be a number of upfront fees, beyond just your mortgage costs, which you`ll need to take into account. Be sure to include these when working out your overall budget.

 

1.    Leaseholders’ Costs

Property owners with a leasehold property will have to pay ground rent (around £50-£100 a year) and service charges to the person who owns the freehold. Service charges and admin fees differ between properties. This is an important cost of running a property so it`s vital you know more about this charges.

 

2.  Major Upfront Costs:

 

·         Deposit – This is the amount you put towards the cost of the property when you buy your home. On average, you need at least 5% to 20% of purchase price (for example: £10,000 to £40,000 when buying a £200,000 home).

 

·         Stamp Duty – This is a government tax paid home, costing £125,001 or more.

 

·         Valuation Fee – The mortgage lender will assess the value of the property to establish how much they are prepared to lend you. The cost can be £150-£1500 based on the property value.

 

·         Surveyor’s Fee – Before buying a house, you should have it checked out by a surveyor. This is vital so that you can see if there are any issues with the property. Surveys range from a basic home condition survey costing around £250 to a full structural survey from £600 or more.

 

·         Legal Fee You will need a solicitor or licensed conveyancer to carry out all the legal work when buying and selling your home. They will also do local searches, which cost you £250-£300, to check

 

·         Electronic Transfer Fee – Typically costing £40-£50 this covers the lender`s cost of transferring the mortgage money from the lender to the solicitor.

 

·         Estate Agent’s Fee – This is only paid by sellers, not buyers, for the estate agent`s services and is negotiated when they put property on the market and is usually 1% to 3% of the sale price plus 20% VAT.

 

·         Removal Costs – Typically £300-£600 though you could do it yourself. Removal firms charge more at weekends and at the end of the month.

 

·         Mortgage Fees – These may include a booking fee of £99-£250 an arrangement fee of up to £2,000 and a mortgage valuation fee (typically £150 or possibly more).

 

·         Insurance  – The lender will require that that you take out buildings insurance to protect your new home against damage from fire, foods, subsidence and anything else.

 

·         Council Tax – The amount you pay is based on where you live and the valuation band the property is in (apart from in Northern Ireland where rate set individually).

 

If you are interested in buying a property with QG Properties, please give us a call on: 0203 633 4332 or alternatively fill in our quick on-line contact form.

 

 

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