When buying a property in the UK there are various costs and fees involved. The most important cost is the deposit, which is usually 10% of the purchase price. Other costs include stamp duty, solicitor’s fees and mortgage arrangement fees.
The stamp duty payable on a property purchase depends on the purchase price. For properties priced up to £125,500 the stamp duty rate is 0% and for properties priced at £125,501 to £250,000 – the rate is 2%. For properties priced over £250,001 the usual rate of 5% applies. The tax is applied at each band so for a property valued at £300,000 – you would only pay the 5% rate on the £49,999 above £250,000.
There are usually conveyancing solicitors’ fees involved in buying a property which covers drawing up contracts and all other documents, this will usually cost between £1300 – £1800 for buying and £1000 – £1300 for selling.
A mortgage arrangement fee will usually be payable by buyers and is typically around £1000, but can also be up to 1% to 3% of the size of the loan for more specialist lenders.
These will vary depending on the lender and the price of your home but most do not charge for a basic valuation. There are also home-buyers reports and building surveys which you can elect to have done for additional peace of mind and they cost between £400 and £1000.
Moving house removal services will usually set you back around £1500.
The cost of selling a property includes the selling agent’s fees and advertising costs. Estate agent fees will be between 1% and 2% plus VAT of your sale price.
On a final note, it is important that you have building insurance to cover structural damage. This can be arranged directly with your home insurer or through a broker such as us.
Momentum Mortgages are mortgage brokers based in Sevenoaks, Kent. We help people to buy, invest or remortgage property while reducing stress and saving time. We have helped clients all over Kent including Tunbridge Wells, Tonbridge, Maidstone, Swanley, Dartford, Bromley, Orpington and more.