Out of all the purchases you make in your life, your home is likely to be the most expensive, but it’s not just the price of the property you need to take into account. When you purchase your new home in Skelmersdale, you’ll have fees and other costs associated with the move to take into consideration. Make sure you budget well so that you don’t end up with a nasty surprise!
If you are looking to buy a home in Skelmersdale, do make sure you take into account all the associated fees with your purchase. To help you, we’ve created this handy guide to the most common fees.
Currently, the basic rate of stamp duty is suspended on all purchases up to £500,000 and will be so until the 31st June 2021. Ordinarily, it is payable when you buy a home that costs over £125,001, although if you’re a first-time buyer, you won’t pay stamp duty on the first £300k. The rate of stamp duty increases as a percentage depending on how expensive your home is. You can calculate the amount of stamp duty payable here
There are also higher rates payable for people with second or buy to let homes. Stamp duty needs to be paid to the HMRC within 14 days of completing the process of buying a home, and your solicitor will usually deal with this, so make sure you’ve budgeted for it.
In most cases, your mortgage lender will require a survey, which could be a basic survey costing £250, through to a structural survey which can cost from £500 to £1,300 depending on the condition of the property.
Whilst you can attempt to do your own conveyancing, it’s one of those things that isn’t recommended as it’s very tedious, involves a lot of legal terms, and if something goes wrong, you have very little comeback. Therefore, you should budget for conveyancing fees, which can vary from hundreds to a few thousand pounds depending on whether you are buying and selling at the same time, and at what price.
There are a number of costs you need to budget for when it comes to your mortgage. I would always recommend speaking an adviser in the first instance to ensure that you know your budget, and if you're selling your current house, whether you have any redemption fees to pay.
Deposit: This is usually the most costly part of moving. You’ll need to put down a deposit of between 5% and 20% of the property price. If you’re already a homeowner, then the deposit is usually paid out of the equity in your current home.
Valuation fee. Some lenders will charge you a valuation fee so they can work out how much they’re willing to lend and some banks will waive this fee.
Transfer fee: Many mortgage providers add a fee of around £40-50 to transfer the money to your solicitor for the property purchase.
Arrangement fees: These are the fees charged to set up a mortgage, and they can range from a few hundred to a few thousand pounds. In some cases, you can find mortgages with no arrangement fee, and some lenders will give you the option to add the fee to the overall cost of the mortgage. Keep in mind that if you add the fees to your mortgage, you’re likely to pay more due to interest on the combined figure.
It’s definitely worth shopping around when it comes to mortgages, and if I can offer you one bit of advice - ALWAYS use a broker, as fees can vary and you’ll not only want to secure the best deal, but the advice and service level is worth its weight in gold.
It’s worth getting some quotes and choosing not just the cheapest removal company, but the one that has the best reputation and offers best value for money. Some removal firms offer extras such as boxes and packing, which can be helpful when you’re busy dealing with all the other paperwork and stress!
Some people choose to hire a van and do the move themselves, but anyone who has done this will no doubt tell you it’s not always ideal. On the day of completion, you’ll be busy dealing with solicitor calls and trying to get the keys to your new home, so you won’t want to have the responsibility of loading up the van and unloading at the other end! Leave it to the professionals.
Repairs and decorating
Even if your new home appears perfect, when you move in, there are bound to be a few things that might need to be fixed and of course you’ll probably want to redecorate, so it’s a good idea to budget for this.
Moving home can come with a lot of fees, not to mention paperwork, but once you’re comfortably settled in your new home in Skelmersdale, you’ll realise that it was worth all of the stress.
For a wide range of properties for sale in Skelmersdale, contact our friendly and professional team of experts at Neil Robinson Estate Agent on 01695 355110 and speak with us today about your next home.