Looking for a new home is one of the most exciting things you can do. Quite often, the hunt for your perfect property is more exhilarating than the process of actually buying it. While buying and selling a property might seem a simple transaction, it is often littered with obstacles and pitfalls. It’s not quite as simple as just getting the mortgage and picking up the keys – buying a new home is almost certainly going to cost more than you had anticipated.
So we’ve put together a list of things you might not have considered when putting together your move budget.
Mortgage Fee – you will usually have to pay your lender an arrangement fee. Think of this as ‘buying’ the mortgage product. Fees vary, but usually they hover around the £1,000 mark and come with different terms and conditions – this fee will usually be added to the total amount borrowed.
Valuation Pack – this is a fee the lender charges to check the property is real and that its value is in line with that of the mortgage request. This fee varies from lender to lender and is somewhat dependent on the purchase price, but it’s usually around £300.
Legal Fees – in many cases a lender will contribute to your legal fees; however you would probably be bound to use a solicitor approved by them. If you pay for your own solicitors you can expect to pay between £600 & £1,000 depending on your purchase price.
Stamp Duty – this complicated, mysterious tax is fully dependent on purchase price and whether or not you are a first time buyer. If this is your first purchase you will be exempt on the first £300,000 of any home costing up to £500,000. If you don’t qualify for exemption you will pay 2% up to £250,000, 5% up to £925,000 and 10% up to £1,500,000 – the best way to get an idea of your stamp duty liability is to use a Stamp Duty Calculator.
Survey – these can cost anything between £500 & £700 and are non-refundable and obviously non-transferrable. Some people pay for surveys on properties which fall through so make sure you leave room in your budget for more than one.
Removals – packing your prized possessions in the back of your car might have worked when you were living in a single room in a house share, but when it comes to moving a household’s worth of goods, it’s worth using professionals. This can range from £100 to £1,000 depending on the distance and size of the move.
Home Repairs – make sure you keep some budget for any urgent jobs you might need to do in the first week after you move. While surveys and inspections identify structural issues they don’t show you the small things that make a difference. It might be leaking taps or light fittings.
Get in Touch
If you are looking to move house, make sure you take a look at our amazing properties for sale in Virginia Water and the surrounding areas. If you’d like to speak to someone about your property options, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram and LinkedIn.
