Extra Costs To Consider When Buying a House

We have been in our new house now for well over a year and whilst it is a working progress, we are very happy in it and settled. We often say that moving was a really good choice, because we love being in the countryside now as opposed to the bustling city (it is so chilled and pretty)! This cute village semi is our second home that we have bought since being married (our first being a back to back terrace in Leeds) and it wasn’t the easiest decision. Not just because it took us ages to decide on where to live, but because are income isn’t massive and whilst we wanted to move, the additional costs that go into buying your own home can quickly accumulate and we wondered how we might afford to move once we found the house!

With savings and stuff we were fine, but if you’re new to the property buying market, and looking at buying a new home too, then the last thing you’ll want is to be caught out by hidden fees and additional costs on what is sure to already be quite a major expense/purchase. To help avoid this scenario when you’re looking to buy, and to be able to budget and factor in these extra costs, What follows below is a list of a few of the hidden costs you can encounter when buying a house.

Legal Fees

There are certain legal processes involved in the sale of a property that include drawing up contracts, transferring deeds between parties and arranging a sale date. More often than not, this is handled by a solicitor on your behalf, and of course you will be charged for this service. Legal fees are typically £850-£1,500 including VAT at 20% though shop around as many do offers and set price packages too. 

Stamp Duty

If you are purchasing a property worth over £125,000, then you will need to pay a tax known as Stamp Duty (legalities but pretty annoying too!). However, the more expensive your desired property is over this figure, the higher the rate of this tax. You can find the rules and breakdowns of these costs and how much you are likely to need to pay by looking on this UK Government page.

Survey Expenses

Before you buy your property, it’s highly likely you will get a survey carried out by a licensed surveyor. This is to make sure that there aren’t any issues with the building you’re buying and you need one in order to have a mortgage approved. These can vary in price though and ultimately the more thorough the survey, the more expensive it is. The mortgage lender will sometimes stipulate the type of survey they require, however usually a basic one will be sufficient. Even so, this can see a bill of around £400. 

Removal Costs

When it comes to moving in, you may well need to pay a removals company to shift all of your furniture, belongings and general tat. Again, this cost can vary depending on how much you need to move, how far you need to move it and how long this will take. If possible, try cutting the costs and move yourself

Parking Charges

This won’t affect everyone, but not all homes will have free parking and you might have to pay a charge to make use of a parking space, or you may find you need to rent a space in a shared car park. This is likely if you are buying an apartment or home in an area that has designated parking. Again it is something you might want to look into and factor in when buying your home! 

Home Insurance

Having home insurance can protect you against any unexpected circumstances like fire, theft and damage, so it’s definitely something you should invest in. It is likely again that a mortgage won’t be released until you have insurance in place.

Like any insurance policy, the cost of this can depend on your circumstances and how much you need to insure, the size of the property and thype of possession you have. This expense is often less substantial than some of the aforementioned costs and could be handled with a one-off or monthly payment. Use comparison sites to find the best deal! 

I hope this post will be helpful in breaking down the cost of buying a home and help you avoid being caught out by any unexpected additional charges. However, it is important to note that this isn’t a comprehensive list and there can be even more costs involved. As a  final piece of advice  seek external financial support if you’re uncertain, or be sure to get your estate agent or seller to carefully go through all aspects of the sale with you first. If you are taking out loans or finance in order to afford these extra costs, please remember to look at the Terms & Conditions and APR! HAPPY MOVING! 

*This is a collaborative post. 

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