House Purchase Budget
The costs involved in purchasing a house are much less than those associated with selling a house. House puchase budgetary costs fall into the following main categories:
Mortgage related house purchase budget costs:
- Mortgage lenders valuation fees - up to £300
- Mortgage lenders legal fees - up to £500
- Mortgage lenders arrangement fee - this is usually non refundable so even if your purchase doesn't go through you will still have to pay. Depending on your mortgage this can be hundreds if not thousands of pounds.
- Lenders insurance premium. If you have a high percentage loan you may need to pay a one-off fee called a 'higher lending charge'. This protects the lender if you can't repay your mortgage. It's worked out as a percentage of what you borrow above the lender's higher lending charge limit, which is usually 80 or 90 per cent of the property value.
House purchase budgetary costs - Professional Fees
- Chartered surveyors costs, either for a valuation and / or a structural survey. Most people go for the homebuyers report which costs around £300.
- Solicitors fees for dealing with the legal aspects of the house purchase. Typically this will cost from £400 - £1000 for a straightforward purchase. Get several quotes and be prepared to negotiate to get the best price.
Stautory Charges - house purchase budgetary costs
- Local, Environmental and Water Search - you will be charged for this by your solicitor and will costbetween £250 and £300 depending on the local council.
- Stamp Duty (VAT exempt). THerei a a lower limit threshold below which Stamp Duty is not paid. THereafter it is 1% up to £250,000; 250001 - £500000 2%, rising to 4% for house prices above this level.
- Land registry fee (VAT exempt)