House purchase fees

benjamin_4

Hi there

We are looking to buy our first house in the next few months, and have a few questions regarding what costs we are likely to incur aside from our deposit.

- Our house will cost approx £100,000. So, are we now completely free from stamp duty?

- Conveyancing. I hear this can be done online cheaply? Does this imply a risk? If not, do these fees vary greatly between solicitors.

- Mortgage arrangement fees. How much are these likely to be?

- Estate agent. Do we pay anything to the agent?

- Surveys. Haven't got a clue how much this would cost. Also, would we pay or would that be included as part of the estate agent or mortgate providers fee? Also, is the extra-detail survey worth the $$?

- Anything else that we have forgotten?

- Anywhere that we can save money on these, without compromising the quality of the work?

One more question - do we need to work with a solicitor local to the house that we are buying, or is it better to be in the city that we are relocating from?

Thanks!
Ben

John_M_Business

Hi, here are a few thoughts:

benjamin wrote:

- Our house will cost approx £100,000. So, are we now completely free from stamp duty?

I believe it will be.

benjamin wrote:

- Conveyancing. I hear this can be done online cheaply? Does this imply a risk? If not, do these fees vary greatly between solicitors.

I think the biggest two factors to consider are:
a) How much time do you have? A trained solicitor will be far quicker than you at the whole process
b) Will you spot unforeseen problems? A good conveyancer will not only know what to check, but what to look for as areas of concern - missing documents etc. You may miss the 'signs' because you don't know how to look for them. Obviously the survey is also important.

benjamin wrote:

- Mortgage arrangement fees. How much are these likely to be?

Depends on the overall mortgage deal. Best to look at payments overall rather than just what you pay up front (i.e. some with no arrangement fee actually cost you more over the medium / long term). If you're an FTB they often waive the fees.

benjamin wrote:

- Estate agent. Do we pay anything to the agent?

No. Though if you choose to 'buy' some things from the vendor separately, you may have to do this through the EA.

benjamin wrote:

- Surveys. Haven't got a clue how much this would cost. Also, would we pay or would that be included as part of the estate agent or mortgate providers fee? Also, is the extra-detail survey worth the $$?

Most mortgage providers will do a valuation WHICH IS NOT A SURVEY - but this is not enough. You need a survey - imagine if you bought a house with subsidence. Don't overlook this as a part of the purchase. You could lose out big time in the long run if there is a serious problem. 'Extra detail' depends on what is in the actual survey. Reputable surveys don't offer extra detail, as they should contain all the necessary checks in any case.

benjamin wrote:

- Anything else that we have forgotten?

Moving costs.

benjamin wrote:

- Anywhere that we can save money on these, without compromising the quality of the work?

It's really not worth it.

benjamin wrote:

One more question - do we need to work with a solicitor local to the house that we are buying, or is it better to be in the city that we are relocating from?

Whatever is easiest for you in communications terms.

Ian_W

Hi Ben,
Just a couple of slightly different views from John_M, but mostly agreement.

Conveyencing: A lot of queries posted on these Boards from people going through purchasing are ones that could be easily answered by their solicitor. Try to get one you can phone [not every 5 mins, but when something troubles you], rather than just the cheapest. Recommendation from friends/family who've bought is best. Costs tend to vary more by area than between neighbouring solicitors, costs more to run offices, employ staff etc in London & big cities than smaller towns. You can get quotes from several firms in advance for fees and they should show disbursements - what they have to pay out for things like searches.

Surveys: If the house you're buying is under 10yrs old it should have a warranty [NHBC or Zurich] against structural faults, in those circs I've been happy to just go with a valuation which is a basic inspection to tell the lender the property is fit security for your loan - you generally get a copy. Over 10 but fairly modern [say under 30/40yrs old] would suggest "homebuyers" survey which is more detailed. Older props a full structural survey is best. Each costs more than the other but you can opt to have them done at the same time the house is valued, which, in theory is cheaper than a valuation followed by a further survey.
Surveys are noteable for suggesting further checks by specialists [eg central heating] - you have to play that by ear, but you can speak to the surveyer and get them to explain, often they're just covering their backs!!

Estate Agents: Works for and is paid by the vendor, no sale - no fee, bear that in mind. There are very good ones and very bad ones but they want a sale so treat what they tell you with a huge pinch of salt. Can be very useful negotiating on offers but remember they don't work for you, if you make an offer but it's clear to them you'll go higher cos you tell them or they sense you or OH have fallen for the prop it won't be accepted.

BoL

hazeyj

Hiya you do not have to pay stamp duty over 150k but this is dependant if you are in a regeneration area. Stamp office can tell you straight away of you are. :A

hazeyj

Hiya you can expect to pay:

Mortgage fees (approx 400 although you may be able to get free if you shop around)

Estate agents fees (try to haggle for 1.5% 2% is averarge)

Around £500 for sols fees :rotfl:

Ian_W

hazeyj wrote: Estate agents fees (try to haggle for 1.5% 2% is averarge)

They're buying NOT selling, so NO EA fees.

Unless charging the buyer is a new EA ploy to make money!! :mad: :eek:

Also it's not a good idea to give averages, depends where you live, around here ave is 1% but can often be negotiated lower.

hazeyj

Sorry I work for a an estate agent and our national average cost is 2% as a starting point.

Ian_W

No need to apologise for working for an EA, hazeyj - someone has to!!

Point being OP is a FTB - are you saying your EA charges buyers? Thought not.

Second point where I live 1% is nearer the norm and that can be negotiated down, also there is a poster called Lush Walrus who owns several EA's in South-East who has stated that 1% is her co's starting point. So to give the impression that negotiating to under 2% is good, MIGHT be misleading. Surely better to say, find out what EA's in your area charge and seek to negotiate down? :rolleyes:

But, hey, let's not fall-out about it. :beer:

Important thing to answer OP is that as a buyer they don't pay EA's fees [whatever the %] at all. :j

hazeyj

Yes your right. Soweeee.