FTB hoping to get onto property ladder but what are additional costs?

sterl1ng

I've been renting for over 10yrs now and itchy to get onto the property ladder. My salary is around 30ks and I have a deposit of around 18k. I'm hoping to buy a place for no more than 150k with the aim of having a 15% deposit of say 22,500 but I have no clue on costs I should factor in for the other stuff like solicitors/surveys/stamp duty and other things I might have missed. I'm wondering if I should put 3k of that 18k as 'fees' and then build up the 7,5k to the remaining 15k.

I'm hoping in about just over 6mths I get reach my target but its so hard to save so much at times. Some tips would be great. I've got a principle in agreement from a lender which will last around 6mths and so a goal for me to work to. I just hope being in london and the area i'm interested in stays levels in price or goes down bit so not needing more to save.

Is there anything esle you think I should do now in prep for buying somewhere?

Thanks

Lavendyr

sterl1ng wrote: »

I've been renting for over 10yrs now and itchy to get onto the property ladder. My salary is around 30ks and I have a deposit of around 18k. I'm hoping to buy a place for no more than 150k with the aim of having a 15% deposit of say 22,500 but I have no clue on costs I should factor in for the other stuff like solicitors/surveys/stamp duty and other things I might have missed. I'm wondering if I should put 3k of that 18k as 'fees' and then build up the 7,5k to the remaining 15k.

I'm hoping in about just over 6mths I get reach my target but its so hard to save so much at times. Some tips would be great. I've got a principle in agreement from a lender which will last around 6mths and so a goal for me to work to. I just hope being in london and the area i'm interested in stays levels in price or goes down bit so not needing more to save.

Is there anything esle you think I should do now in prep for buying somewhere?

Thanks

On a £150k purchase and assuming you are able to complete on the first purchase and don't have duplicate costs, some thoughts on figures as follows:

Stamp duty: £1,500
Solicitor fees and searches £1,000
Basic mortgage valuation £250 (more for a homebuyers report)
Mortgage arrangement fee £500 (or more - or less, depending on the product you go for - some are fee-free, others £1500 or more)
Buildings insurance £300

Plus any furnishings, work you need to do to the house etc.

Total £3,550 (best case scenario) but it could be even more depending on the variables involved. Your first purchase could fall through after you've forked out for the survey and searches, buildings insurance could be higher or lower, valuation and survey costs could be more... it's not an exact science!

fannyanna

The big things are the deposit, stamp duty, solicitor fees and survey. I would estimate the costs as follows:

• Solicitor fees including disbursements for searches etc = approximately £1,200 (if I were you I would get some quotes now so that you have a better idea)
• Stamp duty (1% of purchase price) £1,500
• Survey = approximately £500 for a home buyers survey or £1,000 for a structural survey

You also need to consider removal costs, decoration costs and perhaps furniture.

Polly05

Lavendyr wrote: »

On a £150k purchase and assuming you are able to complete on the first purchase and don't have duplicate costs, some thoughts on figures as follows:

Stamp duty: £1,500
Solicitor fees and searches £1,000
Basic mortgage valuation £250 (more for a homebuyers report)
Mortgage arrangement fee £500 (or more - or less, depending on the product you go for - some are fee-free, others £1500 or more)
Buildings insurance £300

Plus any furnishings, work you need to do to the house etc.

Total £3,550 (best case scenario) but it could be even more depending on the variables involved. Your first purchase could fall through after you've forked out for the survey and searches, buildings insurance could be higher or lower, valuation and survey costs could be more... it's not an exact science!

Don't u pay the buildings insurance every month, rather than having to pay it all up front?

picklepick

Yeah buildings insurance you can pay monthly.

Also, morgage valuation and arrangement fee you may be able to add onto your mortgage repayments and in some cases, there are no arrangement fees.

Lavendyr

Polly05 wrote: »

Don't u pay the buildings insurance every month, rather than having to pay it all up front?

You can, but some charge extra for doing it that way as it's a form of credit. It's still an additional cost though and you need it in place before most mortgage providers will let you complete.

LisaLou1982

On my purchase 2 yrs ago - Bought at 175 so a little more than you, solicitors fees and disbursements came in at just under £4k.

That didnt take into account any new furniture or work i needed to do on the house!!

the-mango

I was looking at this the other day, it's got some useful informatin on buying a home
https://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013610

Piotrf

Here's a rough idea of typical costs and timeline

https://www.moneyadviceservice.org.uk/en/articles/money-timeline-when-buying-property-england-wales--n-ireland