It is not just that massive deposit – don’t overlook the additional costs you will need to pay to finalise your new home. Budget for everything and avoid a last-minute panic with our handy guide.
Aside from the deposit, this is the big one. If you are under a certain threshold and a first-time buyer, you may sidestep this tax entirely, but establish this up front. The amount depends on the purchase price of your new home. Until the end of March 2021, you won’t need to pay anything on purchases up to £500k, and only on the amount above this figure if your house price is higher.
If this is a first-time purchase, you will only pay legal fees as a buyer. These cover the cost of conveyancing and the amount will vary. The main variation is the type of ownership – leasehold property transactions usually cost more, as they are more complicated. If it isn’t clear, ask for confirmation that any cheap conveyancing quotes you receive include VAT, Land Registry and search fees.
Mortgage valuation fee
Your lender will want to check that the price you are paying for your home is fair and in line with current market rates to avoid future problems.
Other mortgage fees
You might need to pay arrangement and application fees for your mortgage. Sometimes these can be added to the overall mortgage, but check how this affects interest and repayments. If the sale doesn’t go through for any reason, you won’t lose these fees by paying them upfront.
The type of survey you need depends on your property’s age and condition. On an older property, any problems highlighted in a more detailed and expensive survey might enable you to renegotiate or ask for remedial works to be completed. A reputable conveyancer such as https://www.samconveyancing.co.uk/news/conveyancing/conveyancing-for-99-the-scam-of-cheap-conveyancing-289 will point you in the right direction.
You will usually need buildings insurance in place before completing the purchase. This ensures that should anything happen to your home before you move in, you are covered.
If you have furniture that won’t fit in a car, and no friend with a van, you need to budget for removals.
Royal Mail charges £68.99 to redirect the lead applicant’s mail to a new address for 12 months and £10 for each additional name.