Buying a home involves more than just the asking price. You should set aside about 15% of the home’s value for additional costs, including solicitor’s fees, mortgage fees, valuation fees, property surveys, removals, and stamp duty.
Solicitor’s fees, typically around £2,000, cover conveyancing, which includes drawing up contracts, organizing stamp duty payments, and handling payment transfers. Local authority searches, costing around £200 to £300, check for issues like flooding risk or nearby developments. Your solicitor will also handle Land Registry documents to confirm property boundaries and register the deeds in your name.
Mortgage fees can add up quickly. At David James, we offer independent mortgage advice through our in-house team of expert mortgage advisers. Whether you’ve already had advice from a bank or building society or are new to the process, they can provide a comparison on any deals offered to you and ensure you’ve secured the best mortgage for your circumstances. The initial consultation is free, and we charge a £249 arrangement fee. Valuation fees, necessary for the lender to ensure the property’s value, can range from £150 to £800.
Survey costs range from £400 to £1,500 depending on the type of survey. A basic Condition Report costs between £400 and £950, a HomeBuyer Report costs between £400 and £1,000, and a comprehensive Building Survey can cost between £600 and £1,500.
Stamp duty varies based on the property price and can range from 0% to 12%. For first-time buyers, the first £425,000 of the property is exempt, but this threshold will drop to £300,000 after April 1, 2025. For other buyers, the first £250,000 is exempt, with increasing rates for higher property values.
Removal costs can range from £150 to over £2,000, depending on whether you hire a van or a full-service removal company. Packing your belongings yourself can save money, but hiring a company to do everything will be more expensive.
Don’t forget the deposit, which is typically 5-10% of the property price. A larger deposit can open up more mortgage options and potentially lower interest rates. Insuring your new home with buildings and contents insurance is recommended, though not legally required.
Finally, as a homeowner, you’ll have ongoing expenses like council tax, energy, water, home insurance, and broadband. By planning for these additional costs, you can avoid surprises and make your home-buying process smoother.
Contact us today to start your home-buying journey with confidence!
