first time buyer - list of expenses to account for?

moongarden

Hi,
We are in the process of putting together a budget for buying a house (first time buyers). We have seen a house we like and have put in an offer so now I am getting together a list of quotes for the various and miscellaneous charges/costs. The house is freehold and only one seller.

The house is £138k. We have a 10% deposit and have a mortgage lender ready.
On the list so far is:
Mortgage fee - £500 - £1000
Conveyancing - £430 - £880
(to include
Legal Fees Bankruptcy Search Fee Acting for Lender Telegraphic Transfer Fee Land registry charge client identity verification?)
We have a copy of the HIP pack which has water, drainage, local authority searches in there. It also contains land registry searches and maps. We have lived in the area for the past 6 years and know it well.

The question is; what else do we need to budget for?
Thanks for reading!

zone

Legal fees purchase and sale
Mortgage fee
Searches
Moving costs
Stamp duty (not payable)
Security system
Contingency



Cant think of any more at the moment.

poppysarah

After all what zone says:

Decorating. Maybe new Carpets? New toilet seat. Locks (new barrels= peace of mind)
Curtains for those awkward windows?

milkybars

I know not part of the actualy buying process but we included it in our budget since it is something to be sorted out prior to completion/exchange - buildings and contents insurance


Also a controvetrial one - the searches done by your solicitor may reveal chancel repair liability. Insurance for this is roughly £100 for 25 years. See other threads for information regarding this, as I say it is controvertial at the moment.

A small cost in comparison - for your deposit bank may charge for bankers draft, check with your local branch. Your solicitor may offer other options for transfering this money to them though.

Best of luck

ajksaver

Hi,

Whatever your final total I would recomend keeping some instant access savings for additional unexpected costs that can occur during the legal process or the first few months of moving into the property.

In addition it is quite normal to pay the seller for the pro-rata bills that he has paid in advance. So for example if he has just paid a 6 month flat maintenence charge in advance at £600 and you intend to complete 1 month later you have to pay him £500 for 5 months as part of the transaction. Same goes for ground rent, utility bill standing charges, etc.

On council tax the seller will often get a refund of any prepaid amounts from the council and you will need to pay the council from the complete date onwards.

In my case had a good deposit and a sensible loan to income ratio so borrowed slightly more than I needed on the mortgage to retain some liquidity incase of unexpected events. I didn't realise that the washing machine would need to be replaced until after I compelted as it was integrated that was another £350.

I think the geeral advice is to hold 3 month's salary incase of job loss or unexpected life event. But in this economic climate even this might not buy enough time.

moongarden

Thank you. ok, list so far:

Freehold and Leasehold Purchase Costs
Mortgage fee - £500 - £1000
Hidden mortgage fees:
Lenders valuation fee - £150 to £250?
mortgage acceptance fee - £99
Conveyancing (professional fees)- £120 - 250
Bankruptcy Search - from £3 to £8 per person
Acting for Lender – £55 to £150
Telegraphic Transfer Fee – £39 (for a blumin’ internet banking transfer!)
Land registry charge - £150
Searches:
Environmental search (includes chancery, flood risk, crime rate, education) – around £150
Preparing land tax stamp duty forms £0 - £85
Stamp duty (not payable under £175k purchase price)
Total Min = £1279 or Total Max = £2189

Insurances
House Buildings and contents
Homebuyers insurance - £21 or free
Chancery insurance £100 a year approx (if applicable. See search above)
Total somewhere in region of £300 - £400?

Additional Leasehold Costs
Could be maintenence charges which have been paid in advance and you have to refund the seller.
Maintenance charges due in next 12 months

Moving Costs
Locks (new barrels= peace of mind) - £80ish
Security system – up to £200
Decorating. Maybe new Carpets? – depends on property

Ongoing Costs
Council tax
Gas, water, electricity etc

1st and 2nd mortgage payments - £1600
Contingency

CHR15

You forgot the Toilet Seat !!!:j:j

moongarden

my brother owns a bathroom supply shop and fitting business - might just manage to blag a free one!

CHR15 wrote: »

You forgot the Toilet Seat !!!:j:j

moneysavinmonkey

Your mortgage fees estimate might need to be widened a bit
as you only have 10% deposit, fees could be upwards of £1k??

I can see one MAJOR thing missing: your 1st mortgage payment!!
I can't remember exactly how they work it out but depending on your
completion dates it can be nearer 2 months worth rather than 1, ....hopefully someone can explain this better, or just ask your mortgage lender.

alisonp_2

moongarden wrote: »

Thank you. ok, list so far:

Freehold and Leasehold Purchase Costs
Mortgage fee - £500 - £1000
Hidden mortgage fees:
Lenders valuation fee - £150 to £250?
mortgage acceptance fee - £99
Conveyancing (professional fees)- £120 - 250
Bankruptcy Search - from £3 to £8 per person
Acting for Lender – £55 to £150
Telegraphic Transfer Fee – £39 (for a blumin’ internet banking transfer!)
Land registry charge - £150
Searches:
Environmental search (includes chancery, flood risk, crime rate, education) – around £150
Preparing land tax stamp duty forms £0 - £85
Stamp duty (not payable under £175k purchase price)
Total Min = £1279 or Total Max = £2189

Insurances
House Buildings and contents
Homebuyers insurance - £21 or free
Chancery insurance £100 a year approx (if applicable. See search above)
Total somewhere in region of £300 - £400?

Additional Leasehold Costs
Could be maintenence charges which have been paid in advance and you have to refund the seller.
Maintenance charges due in next 12 months

Moving Costs
Locks (new barrels= peace of mind) - £80ish
Security system – up to £200
Decorating. Maybe new Carpets? – depends on property

Ongoing Costs
Council tax
Gas, water, electricity etc

Contingency

Chancery a year £100??? If you mean chancel, this is a one off payment (if you need it) not an annual payment. You've saved a bit there !

Wickedkitten

If the house that you are buying is fitted with UPVC doors, it will definitely be less than £80. When we bought our last house, we just popped out the local lockfitters place and bought a barrel for ours for about 12 .