Wondering The cost of buying a house in th UK? There’s a list of fees to consider.
You will pay Stamp Duty on properties costing more than £250,000 for residential properties, unless you’re a first-time buyer. Eligible first-time buyers pay no Stamp Duty on properties costing up to £425,000, and the value of the property on which first time buyers can claim relief is £625,000.
If you’re buying a second home, you’ll still pay an extra 3% Stamp Duty on properties costing more than £40,000 at the relevant rate at that time.
This tax applies to both freehold and leasehold properties – whether you’re buying outright or with a mortgage.
As for mortgages the bigger deposit you can pay (subject to a mortgage affordability assessment), you’ll have a better chance of getting one.
Survey reports are vital so you understand if there are any problems before you buy.
Surveys range from a basic home condition survey costing around £250 to a full structural survey from £600 or more.
Legal fees are typically £850-£1,500 including VAT at 20%.
They will also do local searches, which will cost you £250-£300, to check whether there are any local plans or problems.
Insurance
The lender will require you to take out buildings insurance to protect your new home against damage from fire, floods, subsidence and anything else.
It’s also a good idea to have contents insurance for all your possessions, and life insurance to pay off your mortgage should you die before you’ve repaid the entire amount.
Council Tax
The amount you pay is based on where the property is and the valuation band the property is in (apart from in Northern Ireland where rates are set individually).
it’s important to know and prepare for these costs upfront to have the full knowledge and to be prepared.
