Costs invloved in purchasing a house?

[Matt..]

I am considering purchasing my first house in the next year or so and am trying to work out the finances at the moment. What i would like to find out is what costs are likely to be involved other than the actual mortgage cost. I am assuming there will be legal costs at some point and other hidden extras.

So on a house of approximately £150,000 in value, what additional costs would i be looking at?


Thanks

[cqueen]

Soliciotors, stamp duty,

We bought a house for £202.5k but once you include all costs it was £207.5k

Make sure your solicitor is on a 'fixed' fee, ours was £750. Had it not been fixed we would have been looking at £5k simply because of all the BS we've had with this seemingly straight forward sale.

HTH

Edited by cqueen on Sunday 1st March 12:34

[Jasandjules]

Think (though my brain is not working as usual) that stamp isn't payable until you hit 175k?

Conveyancing (get a fixed fee because you never know what might crop up), moving costs. Buying loads of c**p for the new house, including food etc. Survey(s). Mortgage arrangement fee.

[Tom_C76]

Matt.. said:

I am considering purchasing my first house in the next year or so and am trying to work out the finances at the moment. What i would like to find out is what costs are likely to be involved other than the actual mortgage cost. I am assuming there will be legal costs at some point and other hidden extras.

So on a house of approximately £150,000 in value, what additional costs would i be looking at?


Thanks

Think you'll be exempt from Stamp Duty at that price, so Solicitors fees, (probably £750 ish plus searches etc), Mortgage arrangement fee which you can normally add to the mortgage, Transfer fees to pay the money over (£40 ish), and on mine Chancel Repair Liability insurance was sprung on me at the last minute.

You'll also need a survey of the building. If it's new-build the basic valuation is often provided by the mortgage lender, but may not be, and that's another £400. If it's older you may want a more comprehensive survey unless you're happy to rely on the contents of the HIP.

[MitchT]

The mortgage arrangement fee is the biggest scam going. Basically they're charging you for the privilege of entering into an agreement whereby they make thousands of pounds out of you! It's tantamount to a shop keeper imposing a charge for the effort opening his till so he can put your money in there!!

[cqueen]

Dont forget, stamp duty is not free for under 175k, it's a holiday! (correct me if I'm wrong).

[SJobson]

cqueen said:

Dont forget, stamp duty is not free for under 175k, it's a holiday! (correct me if I'm wrong).

It is free currently, but only for a finite period - the limit will go back down to £150k at some point. Can't remember when. The description 'holiday' makes it sound like you'll pay in future if you buy at £170k now - that's not the case.

[2something]

Don't forget that buying even a small amount of stuff (furniture, fridge, curtains etc.) can easily set you back a couple of grand.

Also moving costs (depending on your current situation)

Day off work (if you're self employed/contractor)

[texasjohn]

SJobson said:

cqueen said:

Dont forget, stamp duty is not free for under 175k, it's a holiday! (correct me if I'm wrong).

It is free currently, but only for a finite period - the limit will go back down to £120k at some point. Can't remember when. The description 'holiday' makes it sound like you'll pay in future if you buy at £170k now - that's not the case.

EFA


Edit - the 'holiday' on stamp duty is until September 09 but I'd not be surprised if it is extended beyond that or even 175k becomes the new trigger point for SDLT (stamp duty)

Under the tories the 'stamp duty holiday' given to us in the early 90s was everything up to £250k!!

and MIRAS too. not that would save you much at current rates (assumes a good tracker rate of course)

Edited by texasjohn on Sunday 1st March 19:57

[SJobson]

texasjohn said:

SJobson said:

cqueen said:

Dont forget, stamp duty is not free for under 175k, it's a holiday! (correct me if I'm wrong).

It is free currently, but only for a finite period - the limit will go back down to £125k at some point. Can't remember when. The description 'holiday' makes it sound like you'll pay in future if you buy at £170k now - that's not the case.

EFA

If you're going to correct me, get it right EFA once more.

My £150k figure was for non-residential property, sorry. However, the residential threshold was £125k or £150k in a disadvantaged area (the definition of which does include places like Canary Wharf...).

You're right about the £175k limit ending on 2 Sept 2009 - that's the completion date, not the date of exchange of contracts. Although like you I can't see it going down again.

[shirt]

make sure you ring around for conveyancing, the price spread was £600 when i bought my house. get prices then ask for recommendations from colleagues and go with what you're comfortable with.

its also a good time to call in favours. i managed to have a complete survey and report peformed by a friend this way.

[texasjohn]

SJobson said:

If you're going to correct me, get it right EFA once more.

Doh!

Edited by texasjohn on Monday 2nd March 18:06

[Matt..]

Thanks for all the help

So it looks like the costs aren't so bad as i have furniture, its just kitchen appliances i dont have. I am also lucky that my parents enjoy refurbishing houses, and they are still young enough to work long hours for me


I am likely to be looking at properties soon, but having never had to do this before i am wondering what questions i should be asking at viewings?

[2something]

Matt.. said:

Thanks for all the help

So it looks like the costs aren't so bad as i have furniture, its just kitchen appliances i dont have. I am also lucky that my parents enjoy refurbishing houses, and they are still young enough to work long hours for me


I am likely to be looking at properties soon, but having never had to do this before i am wondering what questions i should be asking at viewings?

Just off the top of my head:

Why they are moving
How long they have lived there
Do they have a new place lined up
Are you likely to become involved in a long chain
What are the neighbours like
Do they even know the neighbours
What is the parking like
Take a good look at the windows, especially the outside of them
What is the water pressure like, do they have a power shower

Go to the local council website and look up planning permissions for the property and neighbouring properties.

Go to various estate agents websites and download asking prices and details for the properties you are interested in and similar ones

[Meeja]

Be very careful who you choose to do your legal work.

When we remortgaged two years ago, to release equity to finance extension works, the building society paid all of the legal fees proiding we used their legal providers.

The legal providers were woefully inadequate, caused me HUGE problems with the massive delays in hem releasing the and their shortcomings ended in me making a formal complaint to the Law Society.

If I were a first time buyer, then I possibly would have believed some of the BS that they tried to feed me.