Costs and Fees to consider when buying a property

After the Budget of 2013 and the Governments “Help to Buy scheme”, it is clear that they want to assist those first time buyers who have difficulty saving the deposit they need to get onto the property ladder.

There have been some critical reactions to this, some saying it will not help, will merely inflate house prices and make the Government liable for yet more billions of pounds. The results are yet to be seen but it is encouraging that the Government are aware of the struggle first time buyers face.

It is important that any buyer considers not only the deposit involved when buying a property, but also the fees to arrange the mortgage and the valuation together with any additional survey that should be undertaken.

A solicitor will charge a fee for their legal service in the process of bringing a matter to a conclusion for you and advising you throughout until reaching completion, which will also include ensuring you are registered as the owner of the property after completion.

To assist with a solicitors research on a property and analysis of the seller’s information provided, they need to undertake searches. These do vary on area and the type of property but this is a further cost to consider.

Following completion of the property the solicitor will be responsible to pay Stamp Duty Land Tax within 30 days of the completion date, on your behalf. The cost of this is fully dependent on the purchase price and is calculated by a percentage. To familiarise yourself with the price bands please view Property Transaction Fees

If the property is a leasehold property, the solicitor will need to comply with the Landlords requirements and provide them with information about you. The Landlord can charge a fee for administration and dealing with this information, which again is an additional cost.

Finally, if you buy a property it is essential the solicitor registers you as the owner and any mortgage as a Registered Charge.  This is done at H M Land Registry and to do so, there is a fee which is again dependent on the purchase price. To view our price bands open Property Transaction Fees (as above).

I would suggest you speak with a solicitor in the very early stages to guide you through those costs and make sure you have fully budgeted for the whole transaction, not just your deposit and legal fees.