WHAT UPFRONT COSTS DO YOU NEED TO PAY BEFORE MOVING IN?
SO YOU’VE done the ‘hard part’ and secured yourself a mortgage *yay* and now you can turn your attention to completing and moving in. But what other things do you need to pay out for before you get the keys?
Saving for a house deposit does seem like the biggest part of buying your first home but there are some other costs you need to bear in mind that will need to be paid either before moving in or shortly after.
It always helps to create a spreadsheet of outgoings to make sure that everything runs smoothly when it’s time to complete.
- Solicitors’ fees
The legal side of buying a new build home can be complex, that’s why it’s always better to instruct a solicitor to oversee your purchase. As well as helping with any potential issues, they will also ensure that the contract is all good and that your deposit is fully protected. However working with a solicitor isn’t free so always check their prices up front before committing to one. Usually payment is made on completion but again this will vary.
There are some upfront solicitor fees that cover local searches. This involves your solicitor looking at information held by the local authority involving the property, including prospective planning permission or restrictions. They will also show who is responsible for maintaining roads and paths adjoining the property.
- Stamp duty
Stamp duty is a tax you may have to pay when buying a home. If you are a first-time buyer and the home you’re purchasing is less than £300,000 then you wont have to pay this tax.
To see how much stamp duty you may need to pay, visit Stamp Duty Calculator: Before & after SDLT holiday calculations
- Related insurances
Building and contents insurance
Buildings and contents insurance cover your home in the event of damage caused by extreme weather, fire in the home, water damage or if items in your home were damaged or stolen in a burglary.
Some lenders may make it essential for you to have this arranged before accepting their mortgage.
Mortgage brokers also sometimes have an in-house team who can arrange this side of things for you so check with your broker or shop around. If you want more info on this visit: Home Contents & Buildings Insurance| MoneySuperMarket
Your mortgage broker can advise on life insurance/ critical illness cover that will ensure that the mortgage can be paid for in the event of your death. If you don’t use a mortgage broker, then this can be arranged yourself quite easily. This is usually paid for on a monthly basis.
- Mortgage broker fees
If you chose to use a mortgage broker to secure a mortgage, they may have fees for you to pay. These are usually paid on completion but check with your broker.
- Valuation fee
This is a fee charged by your mortgage lender for commissioning a mortgage valuation. This basically ensures the property is valued at the price you have agreed to pay.
- Moving expenses
You may have to factor in the cost of using a removal company to move your things from one house to your new home or alternatively you may have to pay for temporary storage.