Buying a home has a variety of costs associated with it, which is why it’s important to know what finances you have available and what you need to successfully buy a property – from initial viewings to the completion date.
With that being said, if you’re buying a new home for you and your loved ones, here are five hidden costs that you’ll need to know about and avoid those financial surprises along the way.
- Mortgage-related costs
Lenders and brokers will charge fees for arranging and managing the mortgage you’re looking to acquire.
From valuation fees to arrangement fees and booking fees, you should shop around for the best mortgage deals possible. You also want to understand all the fees that are involved, checking for clauses that also add to the costs.
To help with your mortgage process, it’s a good idea to look into a mortgage broker. This is the best way of getting a full scope of what’s available on the market so that you have the most affordable deal for your budget and monthly outgoings.
- Stamp duty
Stamp Duty Land Tax is a government tax on property purchases made in the UK. The amount varies depending on the property’s value and circumstances.
You’ll need to consult with your conveyancer, who is responsible for all the legal and administrative aspects that come with transferring property ownership between a buyer and a seller.
The conveyancer will be able to accurately calculate the stamp duty applicable to the purchase being made. It’s a substantial cost that you don’t want to underestimate.
- Legal and survey costs
Several legal and survey costs come with buying a property. You’ll need a solicitor or conveyancer to handle the legal aspects. It’s advisable to pay for a professional survey too because your lenders will only provide a basic survey, which might not uncover every potential problem.
Get quotes from multiple solicitors to compare prices for conveyancing, and don’t skip on the cost of a survey; otherwise, you might end up spending a lot more as a result of missed issues with the property.
- Moving expenses
Alongside the purchase of the property itself, you’ve also got to think about the cost of moving, too. This includes the cost of hiring a professional removal company, packing supplies, renting a van and potentially temporary storage.
This includes the costs of hiring a professional removal company, renting a van, packing supplies, or even temporary storage, which can quickly add up.
- Maintenance and contingency funds
Maintenance and contingency funds will also be an additional cost to consider. After moving in, there will be ongoing maintenance costs and general upkeep of the property that are likely to require expenditure.
From wear and tear to building a contingency fund for unexpected costs, it’s worth having some extra funds available to help with buying a home.
These hidden costs are worth knowing, so that you can avoid financial surprises when buying a home, particularly for the first time.
