The Costs of Buying a Home in Harrogate
One of the common questions we are asked by prospective clients is “How much will this all cost?” so here is a full list of the fees you can expect to pay when you are thinking about buying a new home (and when they become payable).
Estate Agency Fees
This only applies if you have a home to sell. With the rising of the online estate Agent, the price to sell your home can be as low as £500 for a basic Rightmove listing. However, if you are looking for a more personalised local service and dedicated sales negotiator the fee will be in the region of 1-2%.
Your mortgage lender will have a requirement to have a valuation carried out on your chosen property to ensure they are lending against adequate security.
Prices can vary from nil (for a basic valuation with some lenders) up to several hundred pounds for a more detailed Home Buyers’ Report and even more for a full Building Survey.
The key is that you always have an element of choice in whether you wish to elect for a more detailed report or not, with your decision likely to depend upon the age and type of property you’re buying and any fears/concerns you have about it.
Mortgage Arrangement Fees
Some mortgage products offer comparatively cheap rates but this benefit can be outweighed by an arrangement fee payable to the lender. Not every product has one, so the cost can be nil but could for example, be £999 or even more depending upon the lender/product.
Sometimes these are to be paid up front or you can elect to add these to the balance of your mortgage, but clearly, you would then incur further interest charges.
Being a Local Mortgage Expert myself, I compare mortgage deals with all fees added so we can compare on a like for like basis.
You’ll need to engage the services of a solicitor, the fees quoted by various firms can differ enormously. An estimation for a straight forward purchase with a local company is £600 for a low value property. You will need to give the property address, whether it’s leasehold or freehold and the purchase price to obtain quotations.
They key points to cover when asking for a quote are:
- Ensure the firm includes VAT
- Ensure the firm includes the cost of any “disbursements.” These are fees such as Land Registry Fees and Local Authority Search Fees
- Is your Solicitor on your mortgage lenders panel?
In addition to your Solicitor’s fees and disbursements, you’ll be required to pay this tax which the solicitor collects on completion of the property purchase. Full details can be found here: https://www.gov.uk/stamp-duty-land-tax/ – a residential purchase of £180000, the Stamp Duty would be £1100.
Your Mortgage Broker will usually charge a fee for their service, typically £499. Please try to use a local company that charges on completion only and avoid any application fees where your money will be at risk.
The cost of moving your furniture can vary significantly and will depend on the level of service you are looking for. If you are quite happy to hire a van and roll your sleeves up, this can cost less than £200. On the other hand, if you are looking for a company that provides the full service this can be £1,000 plus.
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