Are you a first-time buyer? Are you hunting for your first property and excited to be getting on to the property ladder?
If you are then you’ll know about the importance of working out your budget and sticking to it. It’s not just the price of the property you want you need to take into consideration. You’ll need to budget for other costs too. Here’s a short list of some of the extras you’ll need to think about.Legal Fees
If you are going to use a solicitor a licensed conveyancer, you will be charged for their services. Fees normally range between £700 and £1,500 with VAT on top at 20%. That means you should be putting away between £1020 and £1800 in total. This figure doesn’t include the searches carries out on the property. These are separate.Local Authority Searches
There are two main searches which are an LLC1 and a CON29. One gives information about any conservation or protection orders attached to the property. It will also tell you if the building is listed. Other information includes planning agreements or permissions.
The other search gives information about public highways. It will outline any plans for railway or road schemes that could affect your property.
Charges depend on the local authority you are dealing with. For example, the London Borough of Hammersmith and Fulham charge between £281 and £328 for each search. Therefore, you’ll need to budget for about £600 to cover both searches.Environmental and Drainage Searches
These two searches and the fees can sometimes be included in the local authority searches. In Fulham you can get a separate search through Thames Waster for an additional cost.
An environmental search will supply information about any issues to do with:
- Risk of Flooding
- Contamination from nearby waste sites
A drainage search will inform you which company your water and drainage services. It will confirm whether your water bill is based on the value of your property, or whether it is metered. You will get details of the location of public mains and sewers. This will enable you to see if any of these services run through your land or are close to your property.Other Fees
An additional cost to consider is a survey fee. Your mortgage company will survey the property. But it is only a basic search. It won’t give you any in-depth information. You can instruct a surveyor. This will give you a full structural survey. Fees start at around £600.
Your mortgage providers will also want fees for certain services. You’ll be asked to pay a valuation fee. This could be anything between £150 and £1500 depending on the value of the property. You might also have to pay an arrangement fee of between £100 and £250. Finally, there’s the electronic transfer fee. This is the fee for transferring your money from the mortgage company to your solicitor. Expect to pay around £50 for this service.