Given that property prices rose by 6.4% in the United Kingdom in 2015, it is no surprise that many people may wince when they read about the cost of buying a property. According to Land Registry Data, the average price of property in England and Wales rose to £188,270. In addition to the price of the property, here are some of the fees and costs you need to be aware of:
Stamp duty charges have been in the news recently due to changes impacting on people buying a second property, but all buyers have to be aware of stamp duty charges. For people buying their only property in England and Wales, there is no stamp duty on purchases up to £125,000 and then there is a percentage rate that rises in bands.
In Scotland, where it is now known as the Land and Buildings Transaction Tax (LBTT) different rates and thresholds apply but the way in which the tax is calculated remains the same. Effectively the higher the price of property you buy, the more stamp duty is payable, so make sure you calculate the stamp duty you need from the start.
To calculate the Stamp Duty / LBTT duty for a residential sale click through to our online Stamp Duty calculator.
Conveyancing and associated legal charges
You need to factor in the cost of conveyancing and if you are looking to obtain a quote for conveyancing, we can help. There are also associated costs with conveyancing such as searches, so this is an area that may impact on your overall budget.
When looking for a mortgage there are often various mortgage fees payable:
- Booking fee – which could range from £99 to £250
- Valuation fee – which will vary depending on the property value and could be between £150 and £1,500
- Transfer fee – which could be between £25 and £50
- Mortgage account fee – which is normally between £100 and £300
If you have an existing mortgage you should check if there are any early redemption penalties that apply.
The physical cost of moving
The cost of moving home can vary widely depending on how much you need to move, where you are moving to, the day of the week you are moving and whether you are hiring professionals. Moving home with the help of family members and friends can be an ideal way to reduce the costs as does avoiding ‘peak’ moving days – Friday being the most popular.
Additional costs associated with buying property
Some of the additional costs associated with buying property may also include:
- Paying for a bankruptcy search
- Local authority searches
- Land registry office document copies
- Environmental search
- Drainage search
- Chancel repair liability search
- Local searches – for example in areas where mining was prevalent
- Bank transfer fee
- Land registration fees
Your conveyancer will be able to advise you which of the above will be needed for your property purchase. Different conveyancing quotes may or may not include some of the aforementioned search costs so it is worth checking that you are comparing like for like when considering the different quotes that you may have been given.
Here at Northwood we aim to assist our clients in making the process of buying or selling as stress-free as possible. Being aware of the full costs involved upfront can help to minimise the prospect that finances become unexpectedly stretched.
If you are looking to buy a property, speak to one of our experienced team members today or search the wide list of properties available for sale on our website.
If you are also looking to sell, try our free instant sales valuation to give you an estimate of how much your current property is potentially worth.
Northwood is an established and respected estate agent and the leading supplier of Guaranteed Rent which gives landlords complete peace of mind.
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