How exciting! You’ve decided that you want to buy a new home! The very thought of moving house for most people will bring a huge level excitement and wonderful ideas about what type of property you are looking for. Once you have trawled through the Internet looking at various property websites it suddenly dawns on you that it will cost real money if you are actually serious about moving home. Where to start though? How much will it cost? What do I have to pay for? What and how much is stamp duty? Even if you’ve bought and sold several properties before, I doubt that most people will immediately think of every expense needed when initially looking for a new home and there will be many who don’t fully understand the governments changes to stamp duty which have been brought in over the last few years.
The first and possibly most important cost will be a deposit. Typically this will be anything between 5% -20% of the price of the property that you buy. The bigger your deposit the better, as it will affect the mortgage rates on offer to you.
This brings us nicely on to the topic of mortgages. Most banks will these days offer you a mortgage and sometimes with preferential rates if you already bank with them. However the mortgage market is possibly the most competitive I have seen it in over 15 years and therefore it would be a good idea to speak with an independent mortgage advisor who has access to rates from all of the lenders out there.
As part of your mortgage application, a valuation survey will be carried out on the property you are buying which will confirm the market valuation and general condition. There are two further types of survey you may want to consider but be aware they will be much more expensive. A homebuyers report is a much more detailed report which can often be carried out at the same time and by the same person who is carrying out the valuation survey. The third option is a buildings survey which is the most detailed survey available but normally would only be recommended on older buildings or where you can see obvious problems with the structure and construction.
It is technically possible to buy a property without being guided by a solicitor however I wouldn’t recommend it and all mortgage lenders would insist on you using one. Fees for conveyancing solicitors can range from £500 - £1500 depending on the price of the property you are buying and any complications that may come up in the process. Many local solicitors will now offer a ‘no sale/no fee’ option in the event of a sale falling through.
Stamp duty is commonly misunderstood by many people who I meet and the best advice would give is to use an online stamp duty calculator which there are many of if you search google such as www.stampdutycalculator.org.uk In a nutshell you will pay 2% between £125k - £250k and 5% on the portion between £250k and £925k.
When the end is in sight and your solicitor is talking about ‘exchanging contracts’ you will need to start thinking about removal costs. This could be simply the cost of a van needed to transport all of your worldly belongings which is likely to be no more than a few hundred pounds or a full removal service which could be £1000 or more. There are plenty of options out there but always go for a recommendation if possible.
The final cost you may want to consider is a bottle of wine for the helpful estate agent who gave you lots of valuable advice along the way!
If you would like us to recommend an independent mortgage advisor, removals contact, or any other property professional, we are happy to help.
Call us on 0114 268 3682 or email us via our website www.SpencersEstateAgents.co.uk