Buying a property is a significant financial commitment, and the purchase price is just one part of the equation. As property experts in Sussex, we’re here to guide you through the additional costs you need to consider, for a smooth and stress-free buying experience.
Mortgage Fees
When securing a mortgage, most lenders charge an arrangement fee, which can range from £0 to £2,000. This fee covers the cost of setting up your mortgage and can be added to the loan, though doing so will increase the amount of interest you pay over time.
Property Valuation Fees
Lenders typically require a property valuation to ensure it is worth the amount you’re borrowing. Valuation fees can vary from £150 to £1,500 depending on the property value and lender.
Mortgage Broker Fees
If you use a mortgage broker to find the best deal to buy your home, you may have to pay a fee for their services. This can range from £300 to £1,000, depending on the complexity of your mortgage needs.
Stamp Duty Land Tax
Stamp Duty is a tax you must pay when purchasing a property over a certain price threshold. In England, the current threshold for residential properties is £250,000 for most buyers. The rate increases progressively based on the property’s price. First-time buyers may be eligible for relief, meaning you won’t pay Stamp Duty on properties up to £425,000.
Conveyancing Fees
Conveyancing involves the legal transfer of property ownership and is essential for every property transaction. Fees can range from £850 to £1,500, including VAT, depending on the complexity of the sale. Your conveyancer will conduct several searches, including local authority, environmental, and drainage searches, which can cost an additional £250 to £500.
Home Survey Costs
It’s advisable to have a property survey conducted to check for structural issues. A thorough survey can uncover potential issues that might require expensive repairs, allowing you to negotiate the purchase price or ask the seller to address these issues before the sale. The cost depends on the level of survey you choose:
Home Condition Report: £300 to £500
Home Buyer Report: £400 to £900
Building Survey: £500 to £2,000
Deposit
The deposit is typically 5% to 20% of the property’s purchase price. A larger deposit can often secure a better mortgage rate. For example, on a property priced at £300,000, you’ll need a deposit of at least £15,000.
Insurance Costs
Mortgage lenders require you to have buildings insurance in place before they release the funds. The cost of home insurance varies based on factors such as property size, location, and the level of cover required. It’s also advisable to consider life insurance or mortgage protection insurance, which ensures your mortgage will be paid off in the event of your death or if you’re unable to work due to illness or injury.
Moving Costs
Don’t overlook the cost of moving your belongings to your new home. Removal services can range from £500 to £1,500 depending on the distance and size of the move.
Maintenance and Utilities
Beyond the purchase, remember to budget for ongoing maintenance, utility bills, and potential renovations. These can add up, so it’s important to plan ahead.
Buy a Home in Sussex
At Alexander Philips, we’re dedicated to providing comprehensive advice and support to help you navigate the costs associated with buying a property. As trusted property experts in Worthing, we’re here to guide you every step of the way, from finding your dream home to completing the purchase.
