26 Mar 2024
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66 South Street, Oakham Rutland, LE15 6BQ
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01778 230 120 01778 230 129 enquiries@hegarty.co.uk26 Mar 2024
Starting the journey to homeownership is like setting off on an expedition. You know what your destination is—a place to call your own—but the path is full of unexpected expenses and obstacles that need to be navigated with the right knowledge and care. The process of buying a new home is stressful in itself and many first-time homebuyers are surprised when confronted with the true cost of buying a home in the UK. Let's illuminate these paths together, ensuring you're equipped for every twist and turn.
Buying a home is a significant milestone that involves navigating through various stages, paperwork, and professionals. Here's a comprehensive overview of the process:
One of the most significant costs, aside from the purchase price of the property, is Stamp Duty Land Tax (SDLT) in England and Northern Ireland. Never heard of SDLT? Don’t worry, you’re not alone.
Stamp Duty Land Tax is a tax levied in England and Northern Ireland on the purchase of properties and land over a certain amount. The tax applies to both freehold and leasehold properties, whether purchased outright or with a mortgage. Different rates apply for first-time buyers, residential properties, non-residential properties. Basically, the more expensive the property, the higher the percentage of SDLT. For many buyers, this tax represents the first major hurdle in the homeownership journey.
You can use the SDLT Calculator to get an idea of the tax you’ll need to pay.
The important part of the process – conveyancing. This involves legal work to transfer ownership of the property from the seller to you. These fees can vary widely depending on the complexity of the transaction and the solicitor's rates and expertise. They include conducting local searches, reviewing the terms of the sale, and handling the transfer of funds. Engaging a conveyancing solicitor early on is crucial to navigating this process smoothly and avoiding any legal pitfalls.
How much you will have to pay for your conveyancing depends on whether you are buying or selling property (or both), the value of the property you are selling / purchasing, and whether the property is leasehold or freehold. Take a look at our conveyancing fees guide to find out what to expect: Conveyancing Quote.
Before committing to a property, understanding its condition is crucial. This is where surveys come in. From basic condition reports to full structural surveys, the depth of investigation can vary, and with it, the cost. Research from Direct Line Home Insurance suggests nearly 100,000 home sales were completed in the 2019/20 financial year without a survey of the property. Despite 42 per cent of surveys uncovering issues with a property, nine per cent of homeowners did not have one completed. A quarter (25 per cent) of homebuyers were later hit with an unexpected bill for repair work, at an average cost of £3,676. This shows the importance of investing in a comprehensive survey can save you from future expenses for repairs and maintenance.
When financing your home purchase with a mortgage, be aware of the various fees that may come into play. These fees can add up quickly and significantly impact the overall cost of buying a property. Here are some common mortgage fees to be prepared for:
Building insurance is often a requirement of obtaining a mortgage, and it's a sensible one. You don't want to be caught without it. It protects your new home from damage due to disasters like fire, flood, or subsidence. You might also consider life insurance, ensuring that your mortgage can be paid off should something happen to you, protecting your loved ones' right to the property.
Moving in day can also dent your budget. Whether you're hiring professional movers or doing it yourself, the costs of transporting your life's belongings to your new home can add up. Planning and budgeting for this final step in the home buying process are often overlooked but essential.
As you start this exciting journey, being aware of and budgeting for these costs ensures that the path to homeownership is as smooth as possible. The process of buying a new home can be costly and complex, but it leads to a rewarding destination: a home of your own. Consulting with a knowledgeable conveyancing solicitor can illuminate the path, helping you navigate the financial landscape of buying a home with confidence and peace of mind.
Whatever legal support you need, our experienced and highly skilled solicitors and legal advisors are here to help. With expertise across a wide range of legal areas, we provide clear, practical advice tailored to you. What sets us apart is our commitment to understanding your needs and delivering the best possible outcome with a personal touch.
