Whilst purchasing a new house there are several upfront fees that you will be required to take into consideration. It is vital to include all costs so you can estimate exactly what may need to spend and include within your moving budget. Fees will vary by your montage lender, the properties valuation and your area.
Here is a list of costs to take into consideration
A deposit will be required to ensure that you are eligible to get a mortgage, the higher the deposit the better choice and value of mortgage you will be eligible for, generally you will need at least 5% of the properties value.
Mortgage set-up fees generally you will be charged a set up fee the costs can vary from lender to lender
Mortgage arrangement fees, generally this will be an upfront fee and will cost will vary from lender to lender
Valuation fee this fee is to find out what the property is valued at and to give a clear indication if the mortgage reflects the true cost of the property. This cost will vary on the value of the property.
Mortgage account fee, this is a single charge to cover the setup of your mortgage, this fee will also vary from lender to lender.
An Higher lending charge, if you have a small deposit and will be borrow the majority for your property, this protects the lender in case of non-payment and have to sell the property has a loss. The fee will be dependent on how much you borrow.
Searches will be undertaken to indicate if there are any problems, planning or local issues regarding the property value, again such fee’s will vary.
Legal costs such costs are paid to a solicitor or a conveyancer in order to undertake all legal work involved whilst purchasing a property, again the cost can vary, but it is advisable to add on VAT to the price quoted.
Stamp Duty is paid by the purchaser and will based upon the value of the property and is generally based at 0% to 7%
A Survey this fee is paid to a surveyor in order to undertake and monitor any structural damage or defects at the property, this can categorised into three types:
•A Home Condition Survey, this is generally the cheapest of the surveys and is most appropriate for newly built and conventional houses.
•A Homebuyers report, this will be an in depth survey which will exam both internally and externally of the property, this will also include a valuation.
•A Building or structural survey, this a very comprehensive form of surveys and is generally undertaken on older style or non-standard properties.
Moving Cost this will vary dramatically on how you wish to move your possession there are several options that will be dependent on your budget, you may wish to hire the whole package from a removal company, or just hire a man and a van or decide to undertake all the removals yourself whilst just hiring a van, it is best to shop around for a professional company and get a written quote before you enter a contract. Cost can vary from costs by the hour or an overall cost of the complete removal.
Estate Agent Fee’s, the fee’s will also vary from estate agent to estate agent and the services that you require from the agent, it is a good idea to shop around and find an estate agent that suits your needs.
Transfer Fee’s such fees are paid to the lender for the transfer of the mortgage to the sellers solicitor, again the fees can vary depending on the solicitors.