It’s one of the worst kept secrets out there, buying a home is expensive! And apart from the cost of the house itself and moving fees, there are several additional costs that a lot of people only find out about once they’re in the middle of the home buying process. But don’t worry, whether you have bought a beautiful apartment in central London or a luxury suburban family home, Parkes has complied a list of three additional costs you should expect when buying a property.
Mortgage Arrangement Fee
When you arrange a mortgage you may look at the monthly payment, the number of years or the interest rate to make a decision. But one aspect that is often overlooked is the mortgage arrangement fee, added on by the lender to set up the mortgage. The average arrangement fee is typically £1000 but can be upwards of £2000 and can be paid upfront or added on to the mortgage (though this will be more costly as you’ll end up paying interest).
Stamp Duty Land Tax (SDLT), often referred to as Stamp Duty is simply a tax that is paid when you buy any property or land in England. It’s kind of like VAT but for homes and the payment is usually filed to HMRC by your solicitor. You can use an online calculator to figure out roughly how much you should expect to pay and if you are a first-time buyer, you get a discount!
Whilst a survey totally optional it can be extremely beneficial to have one. It’s a thorough inspection of the property and you’ll be made aware of any issues with the property such as plumbing or structural and this can be used to renegotiate the property price. Surveys are usually under £1000 and can be organised by yourself or your lender.
Buying a home is a lengthy and costly process but knowing what’s coming can always help reduce the stress. As always, Parkes is always here to help with your search for a new home but we can also help with short term or long term lettings. If you are in the market for a short term holiday rental or a studio flat in central London, get in touch with us today!