What are the forgotten costs of purchasing a new house?
So you have worked hard to build up an healthy amount of savings and now want to purchase new home. Lets explore the forgotten costs of purchasing a new house!
Many people when looking to buy a house rely on the 100% of their savings to be used for their deposit. Often overlooked or forgotten, there are associated costs that is important to account for. Here’s the main expenses that you will be facing when purchasing:
Conveyancing Fees
These can vary depending on the firm you decide to use and the type of transaction. Costs can be anywhere between £500/2.5k however make sure to do your research.
Stamp Duty Land Tax
This is payable upon completion of your purchase and will vary depending on your circumstances. Are you a first-time buyer? Home mover? Are you adding a new property to your portfolio?
Your mortgage adviser can help you establish what you should expect from your Stamp Duty bill to prepare you at best for your search.
To calculate for yourself, take a look at the Stamp Duty Calculator
Survey Fees (optional)
Yes, most mortgage deals come with a free valuation but not all of them. Essentially this is only for the mortgage purposes and you will not see the report because it’s just a basic inspection. The lender needs to determine if the property can be considered suitable security for the mortgage you have requested.
If you wish to have a detailed survey carried out and receive the report from a professional body you will need to engage the services of an independent surveyor. The cost of the survey can be anywhere between £400 and £1,000 (depending on the type). If you don’t have experience in construction or renovation, this is a cost that we would recommend undertaking.
Moving costs
Applicable to you if you need to hire a van or the services of a removal company to transport your current furniture from your old place to the new one. This can vary depending on how far you will be moving and the amount of furniture you need help with. Make sure you obtain a quote in advance to account for this cost if you know you will need to use this type of service.
At Beyond Lending we will make sure we go through all of the possible costs involved during our first appointment. This will help you determine the actual amount you have available for your deposit out of the savings you have built up, avoiding any bad surprises later in the process.
To find out more about the forgotten costs of purchasing a new house, click the link below.
