Hidden Costs that are often forgotten in Property Dealings:
Statistics are damning and very telling – 30% first time buyers have no idea about the additional costs that may come up their way during their purchase. The serious bit is, even the ones who are sure about extra costs, value them to be very little between a few hundreds to a thousand and think of them as just plain nuisances.
The reality is – there is more to it than it seems and you must know about the costs well!
- Property Agent Fee – (Search Fee):
In most cases – it is not necessarily a headache for the buyer because the seller takes the responsibility of this cost. But, you may have to pay the price of finding the optimal properties, you may have to hire an agent yourself to find you the properties of choice or you may have to subscribe to online listing companies that provide matching properties based on your requirements.
Whether you go for an online matching site, or a real estate agent, expect something around £500 as minimum for this cost
- Solicitor’s Fee:
Somewhere in between £500 to £1,000 and may vary from solicitor to solicitor. Some charge by hours while some may have fixed fee.
- Valuation Fee:
Going for a mortgage requires that your properties will be evaluated – typical fee range is in between £100 to £400 but the higher the value of the property the higher the fee.
- The Survey Fee:
Depending on the property value – surveying costs may vary. Expect somewhere in between £500 to £1,000 as your cost. Typically lenders want to have surveys carried out based on the location of the property where considerat
ion is paid on elements like chance of flooding, sinking or other factors that decrease the stability of the property.
- Back Ground Checks for Property:
The solicitor will carry out complete research on the property and the conditions that it had to go through. The cost may be included in the solicitor fee or can be separate from it. Typically it is less than £500 but more than £250.
- Land Registration Fee:
Your property needs to be registered to you and for that a fee is charged based on the value of the property. Check the official website for the registration fee that will be charged to you.
- Mortgage/Lending Fee:
Your lender will be requiring a certain percentage in return of fee based on the loaned amount. This fee is variable and depends on the person getting the mortgage and their history.
- The moving cost:
Although not directly related – moving is a part of the real estate buying experience as well. You can save on the cost by moving on your own or use professional movers who can get the job done for you.
- Duties and Taxes:
Similar to registry fee – another government tax is applicable (Stamp Duty) on all purchases of real estate. It is calculated based on tiers and percentages, expensive properties fall in higher tiers in terms of percentages and you must ensure that you factor this tax in your calculations beforehand. Check the updated table for Stamp Duties to be sure about the charges.