Despite being one of the most significant investments you’ll make in your life, buying a house can also be teeming with unexpected, hidden costs. Though the staggering rising cost of living might first be off-putting, new research shows that owning a home is nearly £1,400 cheaper than renting.
So, if you’ve got some savings and you’re ready to take the plunge, now’s as good a time as any to buy a house. Read on to remind yourself of some of the extra costs involved in the process so you don’t get caught out further down the line.
1. Conveyancing
Making sure the house is correctly passed from the previous owner to yourself is crucial to your sense of security and satisfaction that the property is now yours. Luckily, it’s quick and easy to use an online conveyancing quote builder ahead of time to get an idea of just how much money you’ll need to put aside.
Surveying
In any property survey, a surveyor will research the property and its land, including the history of the deed and a title search. All surveys start by thoroughly checking the legal background of a property and the land it sits on before the surveyor conducts a physical inspection.
Being aware of any problems the property comes with before buying could help you negotiate down the price, offering a clearer picture of any outstanding or incomplete work.
Legal fees
It’s never a good idea to try and cut costs around legal fees. Any small mistakes could lead to major setbacks in the buying process, so it’s sensible to be transparent and communicate effectively.
Your solicitor will usually expect either a flat fee or a percentage of the property’s value, and depending on the complexity of the transaction, this might be a significant cost. Securing a mortgage is never an easy process, but it’s made simpler by carefully planning and preparing for the costs involved.
Valuation fees
When you apply for a mortgage, the lender will arrange to carry out a valuation for you, but you’ll usually be expected to foot the bill. Prices vary and usually correspond to the value of each property, and there’s no harm in doing some research beforehand.
If you’re confident that your future home is priced correctly, you’ll never need to worry about overpaying. Seeking valuation services is therefore a sensible idea, helping you to make sure you’ve not been misled, or your house hasn’t been overvalued.
Once you’ve budgeted for the major costs expected as a new home owner – including stamp duty, deposit, estate agent’s fee and removal costs – it’s important to use foresight and plan carefully for those we’ve mentioned in this guide.
