There are a number of costs involved in buying a home which are important to be aware of before starting the process.
Solicitors fees vary depending on the level of service required, but many are based on the value of a property purchase. It is important to note that there are a number of individual elements which are chargeable, depending on the complexity of the purchase.
If you are selling as well as buying, these fees will increase considerably. Also if there are any unusual transaction criteria such as shared ownership, right to buy, help to buy or new build purchases, there may be additional administrative charges.
As a rough guide, here are some very basic summary costs for the various price bands.
£0 – £250,000: £750 – £1000 plus VAT
£250,001 – £500,000: £1000 – £1300 plus VAT
£500,001 – £750,000: £1300 – £1500 plus VAT
£1,000,000 and above: 0.1% of purchase/sale
Here is a working example of purchase costs for a married couple buying at £450,000
EXAMPLE QUOTATION BREAKDOWN
|Purchase Legal Fees||624.00||1||624.00|
|Telegraphic Transfer Fee||50.00||1||50.00|
|Land Registry Fee||135.00||1||135.00|
|Land Registry Pre Completion Search||4.00||1||4.00|
|Total VAT @20.00%||£206.20|
We deal with a number of local solicitors and would be happy to provide a referral upon request.
Surveyors fees vary depending on the type of survey required. Some surveys will be linked to your mortgage application, such as a mortgage valuation so in many cases these fees are fixed by your lender. These are usually paid up front. As a rough guide, here are some very basic summary costs.
Mortgage Valuation: £500 – £700 plus VAT depending on property value
Homebuyers Report: £700 – £1500 plus VAT depending on property value
Full Structural Survey: £1,000 – £3,000+ plus VAT depending on property value
These figures are just a guide and will vary depending on the value of the property, the mortgage lender you choose and the type of survey you require.
We have a number of preferred partners who can provide surveying services so please get in contact and we can refer you to them.
If you’re buying a home that costs over £125,000, you’ll have to pay Stamp Duty Land Tax on your purchase.
Stamp Duty Land Tax applies to properties that cost over £125,000 except in Scotland where since 1 April 2015 Stamp Duty doesn’t apply. Instead you’ll now pay Land and Buildings Transaction Tax when you buy a property. This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
A reform of residential property Stamp Duty announced by the chancellor in his 2014 Autumn Statement means that rates will now only apply to that part of the property price that falls within each band.
How much is Stamp Duty?
You pay 0% for the first £125,000, 2% on the portion up to £250,000, 5% up to £925,000, 10% up to £1.5m and 12% on anything above that.
|Minimum property purchase price||Maximum property purchase price||Stamp Duty rate (only applies to that part of the property price that falls within each band)|
|Over £1.5 million||12%|
For example, if your new home costs £175,000 you’ll pay £1,000 (2% of the property value that falls within the relevant band)
Use our Stamp Duty calculator to find out how much you’ll pay.
Removal costs, like many home moving costs, can vary dramatically. They are typically based on the ‘from’ and ‘to’ addresses as well as the size of the property and the contents to be moved.
When budgeting you need to allocate at least £1,500 up to £5,000 depending on the amount of work required, the travel required, and the volume of the contents.
We have links with some trusted removal companies and would be happy to provide their details to you upon request.
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