Making the decision to buy a new home is extremely exciting, and knowing in advance what fees are payable to make your dream become a reality, will make the whole process a lot easier for you. Following is a guide of the wide range of fees that are payable when purchasing a new home.
The first fee you must pay when buying a new home is the deposit, which depends on the price of the property, how much you need to borrow, and whether or not you are going to use a government scheme such as Help to Buy. The deposit is payable in advance to your lawyer to secure the home you want to buy. Ideally, you should try to pay as big a deposit as possible to get a mortgage at the best rate the lender has to offer.
To obtain a mortgage, you have the option of speaking to a mortgage broker, who will do everything for you, or go directly to a lending company. They will offer you a range of options, with the amount you get for your mortgage depending mainly on your salary, your expenses, your credit record, as well as the amount you have for your deposit.
This is the stage of the process when you might be required to pay a mortgage evaluation fee, a mortgage arrangement fee, conveyancing fees, and quite possibly mortgage broker’s fees as well.
Valuation and surveyor fees
Your lender or mortgage broker will issue a mortgage valuation report on the home to check its value on the market. You have the option to choose a basic mortgage valuation, or a more in-depth “building survey”. Since this will provide you with information about any possible problems with the house, it is an important step in the procedure. Costs are normally being paid in advance.
This is a fee charged on new properties in England, Northern Ireland and Wales on increasing portions of the property price above £125,000 when you buy residential property. The tax is calculated on the part of the property price that falls within each rate band. No stamp duty is payable on properties with a value less than £125,000, unless you are purchasing a second residential property, in which case a new 3% surcharge is payable.
When buying a new home, you need a solicitor to make sure that all legal rules and regulations are adhered to. Fees for these services include the solicitor’s fee, local search issues, Land Registry fees, and any other necessary legal costs.
You can find the right solicitor by doing some research of your own, or by getting referrals from friends, family and work colleagues.
Solicitors normally give you a few options to choose from, such as the “no sale, no fee” option, which protects you, should the sale fall through for some reason. Cheaper options are also available, but you will still be liable for the fees, even if the sale is terminated.
Other costs involved when purchasing a new home
There are a few other costs to consider when the purchase of your new home is finalised and you are ready to move in. These include ground rent (if you are buying a leasehold flat), costs for a moving company, home insurance, money you will need to spend on things like curtains for instance, before you move in, as well as several other possible costs related to your move.
Further information is available at http://www.whathouse.com/advice/a-guide-to-the-fees-payable-when-buying-a-new-home/