buying: legal fees etc how much do i need??

madge7

Hi

I am currently saving to buy a properrty, I just hoped someone could give me some advice on roughly how much the actual buying of a property is going to cost. I am not planning on buying for about a year to 18 months, I have approx 10-12k for a deposit and so am saving for legal fees and all that. Hoping to buy a flat in the region of 120-135k.

I just have no idea about stamp duty/legal fees/surveys and all that and so would be grateful if someone could point me in the right direction. Am hoping to save about 6k - including some money for furniture.

Thanks xx

Mozette

I bought about 4 years ago - for £190,000 - the solicitor cost just under £2000.
A survey - depends on what sort you want, they can vary from around £300, to a few thousand for a full structural.
Depending on the area there may not be any stamp duty - if you go on the HMRC website you can find out.
Don't forget the costs of physically moving - from van hire to a removals firm.
Furnishing, well, as much as you want! Ikea is fairly cheap - though not everyone's taste! Or try freecycle, charity shops; Dunelm is pretty good for cheap but okay stuff.

tootiefrooties

If you buy in the next year at the price range you suggested, there will be no stamp duty to pay. They might extend the stamp duty holiday beyond a year (watch this space), but if they don't then you're looking at 1% of the purchase price - so about £1200.

HTH

hostman

I'm going through the process of buying a property for £125k now and so far our costs have been:

- Home Buyers Report (including valuation for lender): £475

- Conveyancer is going to cost £440 + land registry fee of approximately £150. It should be in total no more than £750

- Mortgage has a product fee of £599, which we have opted to add to the mortgage, in the event our application is rejected

- After receiving the survey in the post today, it suggests we may need to pay for additional checks, the quotes themselves may be free from the contractors, we may be able to negotiate with the vendor to complete the urgent matters, but this is something to bare in mind when budgeting, "unknown complications"

We're not paying stamp duty as we offered below the 1% threshold, before Government increased it to £175k. If you buy within the next year, you won't need to pay it. After that there's uncertainty if they will lower it again after 12 months, my feeling is they will keep it set at £175k.

madge7

thank you everyone who replied .. very useful. furniture wise i will do it all as cheap as i can, so that wont be too much of a problem i hope!

also - i have been hearing things about no one getting mortgages because of the state of everything, and also having to put down something stupid like a 20% desposit!! is this all hearsay??

fingers crossed i wont have to pay stamp duty in a years time ...

hostman

madge7 wrote: »

thank you everyone who replied .. very useful. furniture wise i will do it all as cheap as i can, so that wont be too much of a problem i hope!

also - i have been hearing things about no one getting mortgages because of the state of everything, and also having to put down something stupid like a 20% desposit!! is this all hearsay??

fingers crossed i wont have to pay stamp duty in a years time ...

If you want the best interest rate, you'll need a large deposit. Ideally, you're going to need at least 10% and very good credit history. You'll also need to be able to afford it. If your individual earnings are more than four times the amount you want to borrow, you may struggle. One reason for the housing boom was being able to borrow five times + your earnings to buy.

madge7

hostman wrote: »

If you want the best interest rate, you'll need a large deposit. Ideally, you're going to need at least 10% and very good credit history. You'll also need to be able to afford it. If your individual earnings are more than four times the amount you want to borrow, you may struggle. One reason for the housing boom was being able to borrow five times + your earnings to buy.

I am hoping that by then, that my salary will be more than now making it more affordable. Another reason to wait 18 months.I should be ok on the credit history, but I have a very frugal and cheap 18 months ahead of me!!

Mozette

madge7 wrote: »

but I have a very frugal and cheap 18 months ahead of me!!

Madge pet, welcome to the rest of your life once you've bought! I never seem to stop shelling out on bills & repairs! :eek:

Still, I'd rather own than rent, so it's my choice! (who wants a life anyway )

madge7

Mozette wrote: »

Madge pet, welcome to the rest of your life once you've bought! I never seem to stop shelling out on bills & repairs! :eek:

Still, I'd rather own than rent, so it's my choice! (who wants a life anyway )

he he, well i have been renting for the past year (seemed like the right thing to do at the time, when in fact i'd have been better off staying at home and saving!) so now i am going back to the parents to save hard!!

but it'll be worth it once i have somewhere of my own i am sure!!:j