Buying a new property is a big decision, probably the biggest you’ll make and one that requires careful consideration for it to be a success. As a buyer in the UK, there are a number of things to consider before signing on the dotted line and making a commitment to a new home.
First off, it sounds obvious but you need to consider your budget. How much can you afford to spend on a property? It is important to factor in all the sneaky additional cost that can creep up on you such as stamp duty, legal fees, removal costs and the cost of any repairs or renovations the property may need.
Stamp Duty: Stamp Duty is a tax that is applied to all property purchases in the UK. It is calculated as a percentage of the property’s value, and it typically ranges from 2% to 12%.
Legal Fees: When buying a house, you’ll need to hire a solicitor to carry out the legal work. Solicitor fees can range from £500 to several thousand pounds, depending on the complexity of the transaction.
Surveyor’s Fees: A surveyor will assess the condition of the property and may recommend any necessary repairs or renovations. Surveyor’s fees typically depend on the size of the property.
Valuation Fees: Lenders may require a valuation of the property to ensure it is worth the purchase price.
Mortgage Fees: If you are taking out a mortgage, you may be charged an arrangement fee to cover the cost of setting up the loan. You may also be charged an early repayment fee if you decide to pay off the loan earlier than planned.
Insurance: Mortgage lenders typically require borrowers to take out a buildings insurance policy to cover the cost of repairs and replacements in the event of damage to the property.
Other Costs: You may need to pay for other costs, such as removal fees, estate agent fees, and utility connection fees.
Remember, extra fees can add up quickly, so it’s essential to budget for them when you are planning to buy a property.
You also need to think about location. Are you looking for a city centre apartment, a house in the suburbs or a rural cottage? Before deciding, think about the area’s proximity to local amenities, public transport links, schools and green spaces. Don’t just think about now, but forecast for the future.
The condition of the property is an important factor to consider when buying. Make sure you get a survey done to ensure the property is structurally sound and that there are no hidden problems such as damp or subsidence.
Finally, you should consider the future. Think about what your long-term plans are and whether this property is going to suit them. If you are planning to start a family, for example, you may need more space or a larger garden.
Buying a new property is so exciting, but do your research and be prepared for hidden costs to help make the process much smoother and reduce the risk of any nasty surprises.
For more info and tips, contact our team at Home EA today.
