First Time Home Buyer? These are the ‘hidden’ fees to look out for
Surprises can be good. A gift from friends or family to celebrate the purchase of your new home, for instance.
We think it’s safe to say, however, that surprises that arise during the conveyancing process are not usually good ones. Fees, in particular.
Here are some of the most common ‘hidden costs’ associated with buying your first property.
Must be paid within 30 days of buying a house costing over £125,000. The price you pay will depend on how much your property costs.
The cost of valuation – where the mortgage lender checks the property’s value to decide how much they can lend you – ranges from £150 to £1500.
Electronic transfer fees
The cost of lenders transferring mortgage money to the solicitor usually costs between £40 and £50.
A deposit must be paid when taking out a mortgage of at least 5% of the purchase price.
You’ll also pay a booking fee (£99 - £250), arrangement fee (up to £2000) and a mortgage valuation fee (around £150).
Ongoing property costs
These can include the cost of repairs (these will have been highlighted in the survey carried out by your solicitor); insurance (it’s a good idea to protect yourself financially in the case of fire or flood damage or in the case of you passing away before the mortgage is paid off); and council tax and utility bills.
When purchasing a property, it’s a best practice to hire an experienced conveyancing solicitor to assist you with the complex legal process.
Of course, this will incur costs, which you’ll need to factor into your budget. The problem though – is that many law firms are not exactly transparent when it comes to the fees. While you may receive a fairly low initial quote for the services you require, chances are, you’ll encounter a whole host of additionals (‘hidden fees’) down the line.
GWlegal prides itself on its completely transparent fee structure – and have done so for more than 30 years. As a result, our clients return to us again and again.
Buying your first home? Get in touch – our highly experienced property team would be delighted to help.