Buying a new home is one of the biggest transactions you will ever make. Aside from the actual cost of your new house, there are a variety of expenses that can easily be overlooked in the excitement.
Here is our list of new home costs to help you ensure everything has been accounted for.
In order to secure a mortgage, your mortgage lender will arrange for your new home to be surveyed. This will require payment upfront. The cost of a survey will depend on which type you opt for. They include:
You are responsible for your new home from the day you exchange contracts therefore you will have to take out a buildings insurance policy as a condition of your mortgage.
Solicitors are responsible for approving all of your legal documentation. It is their job to examine contracts and conduct a variety of checks to ensure your house move is legally binding. A good solicitor will chase up paperwork on your behalf and should provide you with regular updates about how your move is progressing.
Before you instruct a solicitor it is important to obtain a quote so you can factor this into your budget. Solicitors should provide a breakdown of fees that will include Land Registry, Local Authority Search Fees, Stamp Duty (see below) and solicitors’ fees.
We are happy to provide you details of trusted solicitors who we regularly work with.
When you complete with your solicitor you will pay Stamp Duty Land Tax. It is a government tax and is usually the most expensive aspect of moving house. How much you pay depends on the value of your property and whether you are a first time buyer. In most cases you will not pay any tax on the first £125,00 of your house. Between £125,001 and £250,000 you will pay 2% in tax and you will pay 5% on £250,001 to £925,000.
While all of our homes come with high specification fittings, some customers may choose additional items such as an integrated coffee machine. After you have agreed any upgrades, you will be given an upgrade bill. This will be shared with you and passed to your solicitor to be paid upon completion.
The cost of removals will vary depending on how much you have to move! It is worth clarifying exactly what your removal company will and will not do so you are fully prepared for moving day.
If you do not require a removal van then you may wish to hire a smaller vehicle, this will obviously be another cost that you will need to factor into your budget.
You will already have considered your monthly outgoings in the process of applying for your mortgage. Whilst you will usually be given a month’s grace period to settle in, don’t forget to set some money aside to cover these payments, as it will no doubt be an expensive time!
For a quick and effective response contact our friendly and experienced team.
With the Government backed Help to Buy scheme you can move in to a new home with as little as a 5% deposit.
The 'Help to Buy Equity Loan' is available to first time buyers as well as existing homeowners.