Costs involved when Buying a Property

Buying a property involves more than just paying the sale price on the day of completion. There are other professional costs associated with a sale that may not immediately be apparent.  An individual looking to purchase a residential property should consider the list below – this may help avoid the disappointment of incurring an unexpected expense through the course of a conveyance.

• Deposit

  
  

  The deposit comprises part of the sale price.  It is typically 10% of the price that has been agreed.  This is paid on exchange of contracts and is considered when assessing the final balance that is due from the buyer on the day of completion.  If a 10% deposit is not held (typically, where the full purchase monies are being received via a mortgage advance) you should let your solicitor know as soon as possible so this can be communicated back to your seller.

• Conveyancing Fees

  
  

  In addition to the sale price, a Buyer will have their own legal fees to pay, covering the conveyancing process.  Please contact a member of our Property Team to discuss your purchase and an estimate of costs can be provided at an early stage.  There are many expenses beyond your solicitors time that will require covering – for example, Land Registry Fees and the cost of any necessary property searches (amongst other disbursements).

  
  

• Stamp Duty Land Tax (SDLT)

  
  

  Stamp Duty is a self-assessment tax payable to HMRC on property purchases above certain thresholds.  The payment itself is arranged by your solicitor  as part of the conveyancing process.  The amount you will be required to pay depends on the purchase price and various other criteria (for instance, whether you are a first time buyer or UK resident).  We would recommend you use HMRC’s online SDLT calculator to confirm your liability.

  
  

• Survey Costs

  
  

  When buying a property, a Buyer agrees to purchase the property in the condition it is in.  It is uncommon for any guarantees / warranties to be given by a Seller.  Accordingly, a Buyer should always consider having a throughout survey undertaken, and where necessary, any additional ancillary surveys (for instance, structural surveys, damp surveys etc.)

  
  

• Mortgage Fees

  
  

  When buying with the help off  a mortgage, there are various other fees which you are likely to incur.  This includes mortgage arrangement fees, valuation fees, and broker charges.

  
  

• Removal Costs

  
  

  If the buyer is moving from another property, they ought to factor in the cost of hiring a removal company.

  
  

• Buildings Insurance

  
  

  A Buyer should not forget  the need to keep their new home properly insured – indeed, this is a formal requirement that will need to be adhered to in the event finance is being taken from a bank.