Costs
When you are considering purchasing a property, it is important to factor in the cost of the items below from the outset:
Mortgage
Some mortgages have a registration fee. This is non refundable, so even if your purchase doesn't go through you still have to pay this cost. You can opt to put this price onto your mortgage.
Survey
These range depending on the level of detail you wish from your survey. Home reports contain a single survey which should flag up any major issues. You can then upgrade to a more thorough survey.
Solicitors fee
Depending on your individual circumstance, your opening quote is likely to range from £600 to £1,000. This will be for the basic service, so if your purchase becomes complicated please be aware that you will be charged for all extra work the solicitor undertakes. The cost of searches (detailed below) is also extra.
Searches
Your solicitor will undertake local, environmental and water searches, for which you will be charged approximately between £250 and £300 depending on the local council. Your solicitor will also undertake a bankruptcy search on the property you are buying to ensure that there is no previous history of bankruptcy or financial difficulties.
Land registry fee
This is a fee paid to HM Land Registry to register changes to the property title, i.e. new ownership.
Stamp duty
Stamp duty is a land tax on the property you are buying and is paid to the government. There can be regional variations but the standard levels are as follows:
| Property purchase price | Stamp duty land tax rate |
|---|---|
| Up to £125,000 | 0% |
| £125,000 - £250,000 | 1% |
| £250,001 - £500,000 | 3% |
| £500,001 and above | 4% |
| As of March 2010, these exceptions apply: | |
| Up to £250,000 (first time buyer only) | 0% |
| As of 2011 / 2012 tax year: | |
| £1,000,000 + | 5% |
Money transfer fee
You will be charged the cost of a telegraphic transfer to transfer the money from your mortgage lender to your vendor. This is usually around £30.
