We always talk about the purchase price, but there are other costs to buying a property and of them all, stamp duty is pretty major. By knowing these costs upfront, you can budget accordingly and avoid surprises.
Stamp Duty Land Tax (SDLT) is a tax which can be paid on any property sold in England and Northern Ireland above the price of £125,000. You pay the value of the property and whether you are a first-time buyer or it is your main home or an additional property, you pay different percentages on parts of the property price, because the rates are tiered.
Other buying costs include:
Solicitor or conveyancer fees – The legal work required in moving the ownership over.
The price of surveys – These check the condition of the property, which might help you spot problems that could cost you time and money in the future. For advice from Estate Agents Hucclecote, contact www.thomasandthomasproperty.co.uk/estate-agency-hucclecote/
Lenders may also charge mortgage fees, which will bump up the overall cost. The three that are most commonly charged include arrangement fees, valuation fees and booking fees. You could pay everything at the outset or add it to your loan – but this will cost you more in the long run as interest rates apply!
Cost of packing up and moving your stuff also needs to be a consideration and you must typically have buildings insurance in place by the time you exchange contracts.
Taking into consideration these expenses would be quite helpful. As far as likely expenses go, most estate agents and mortgage advisers are able to break it down. Anticipating the situation will leave you in an ideal spot to handle your budget and gain a more seamless buying experience.