While the main cost of buying your home will be the purchase price, you will also incur other costs associated with buying a property, more details have been provided below.
You may have to pay Stamp Duty, which is a tax that people have to pay when they purchase a property over a certain price. The stamp duty level is set by the government and is subject to change. Your solicitor or financial advisor will be able to advise you of the current stamp duty levels.
Land Registry Fees
When you buy a property your solicitor will need to register your interest in the leasehold or freehold title with the Land Registry (the Government body responsible for recording ownership of land and property). Your solicitor will charge you for this service.
Unless you are going to buy your home with cash you will need a mortgage. Some banks or building societies don’t like giving mortgages on flats in high-rise blocks or in blocks of non-traditional construction, so you might need to shop around for a suitable lender. If you take out a mortgage there will be a number of fees you have to pay in addition to the mortgage loan itself. These may include:
Mortgage Application Fees
If you take out a mortgage your lender may charge you a mortgage application fee, also known as an ‘arrangement fee’.
When you apply for a mortgage, banks or building societies normally have a valuation survey done. Your bank or building society may charge you a fee for this.
You may need to engage a solicitor or licensed conveyancer to look after the legal side of buying your home. They will transfer the money provided by your lender to the Council as well as ensuring the stamp duty is paid and that your ownership of the property is registered with HM Land Registry. You should always ask how much it will cost you before you employ a solicitor or licensed conveyancer. You may also be required to pay the mortgage company’s legal and associated fees.
You should consider having a survey done by a qualified surveyor to get advice on the condition of your home before you complete the purchase. There are different types of surveys and you will need to decide which one is best for you. You will have to pay to have a survey carried out.
Apart from the costs you will have to pay when you buy your home, there are a number of other ongoing costs you will need to consider.
If you take out a mortgage you will be responsible for making repayments to your lender, usually monthly ones. You will have to pay the mortgage, plus interest. Remember your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.
Building insurance is needed to cover the full cost of rebuilding your home if fire or other incident destroyed it. In the case of flats or maisonettes, we normally arrange building insurance for the whole block. You will be expected to contribute towards the cost of any building insurance. A charge will be included in your annual service bill.
There are various types of insurance that you should seriously consider. These include Life Insurance that will pay off your mortgage if you die, Contents Insurance to protect the contents of your home from theft and other risks and Mortgage Protection that will meet your mortgage repayments if you loose your job or become ill. However, as with any financial investment, it’s worth getting independent financial advice before making a commitment.
Repairing Your Home
All properties need repairs from time to time. If you become a homeowner, you will become liable for the costs of these repairs. Freeholders of houses will be responsible for all repairs. Leaseholders are responsible for internal decorative repairs and maintenance of services in their flat and for a share of the cost of any works done by their freeholder (usually the Council).
You will continue to be responsible for the payment of your Council Tax and for the gas and electricity that you use. In addition to this you will be billed directly by Thames Water Board for water and sewage rates that you pay as part of your rent.
Car space/garage/shed costs
You may pay rent to us for a car space, garage or shed as part of your weekly charges. If you buy your home you will have to continue to pay these to us.