| Lender's Valuation (Basic Valuation)
Every mortgage lender requires a property valuation to ensure that it is worth the price to be paid for it. The mortgage lender commissions, yet you have to cover this cost. The valuation cost is dependent on the property value. So, put aside say £125 for a house worth £50,000, £165 for a £100,000 property, etc. A few lenders do not charge a fee, as an incentive so you take out your mortgage with them.
Survey
It is highly advisable for you to have your own independent, more detailed survey undertaken to check any defects. There are two kinds of survey, the Homebuyer's Report costing between £250-£500 and the much more comprehensive Building Survey (Structural Survey), costing £1,000 plus. If you are buying an older property, you may need to allow for extra for further checks.
Legal/Conveyancing Fees
You need to hire a solicitor for the legal aspects of buying a property. As there is no standard fee, it is a good idea to shop for the best rate. Some solicitors charge a flat rate while others charge a percentage of the property price, normally up to 1 per cent. As well as the price of your house, the fee will take into account factors such as the amount of paperwork involved, how much skill is required and how complicated the transaction is.
You will also have to pay for the legal work done by your lender's solicitor. Again, prices vary so ask your lender how much they charge. If you use the same solicitor as the lender to do your conveyancing this may save you money, but compare charges with other firms.
Stamp Duty
Stamp duty is a government tax that is charged for properties valued at over £120,000. If your new home is priced between £120,000 and £250,000, you will pay 1% of the property price. From £250,000 to £500,000, it will be 3% and over £500,000 it will be 4%. So, for example, if you are paying £200,000 for your home you pay £2,000 in stamp duty.
Land Registry Fee
The Land Registry is a government department that looks after the registers of all registered properties in England and Wales. It charges a fee for transferring the register to the new owner. This fee is charged according to property price:
Price (£) |
Fee (£) |
up to 40,000 |
40 |
40,001 - 70,000 |
60 |
70,001 - 100,000 |
100 |
100,001 - 200,000 |
200 |
200,001 - 500,000 |
300 |
500,001 - 1,000,000 |
500 |
1,000,001 and over |
800 |
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