Five Extra Costs to Remember when Buying a House

So, you’ve found the perfect home. You save up for years and finally get together a deposit. You’re ready to apply for a mortgage! What happens first? Buying a house can have so many more costs than people are aware of, and there doesn’t seem to be a great deal of information available without getting it from an estate agent or solicitor – whose advice never comes free! I thought it would be useful to put together a little guide. Here are 5 extra costs to remember when buying a house. 

Valuation Fee

This is a cost that is hard to quantify because it differs depending on the overall cost of your house, but its worth bearing in mind that this can be anywhere up to £1500. Basically a valuation fee means that the lender looks at the property and decides if it is worth as much as the seller is asking for, and whether or not they are prepared to lend you the money. It’s worth noting that there is not always a charge for this, depending on the type of mortgage that you get, so do shop around to ensure you are getting the most for your money.

Stamp Duty

Stamp Duty is something that I had never heard of before I started looking in to buying a home, but essentially it is an additional tax that is paid on homes which cost more than £125,001. Thankfully, first-time-buyers are exempt from paying Stamp Duty on the first £300,000 of properties that are worth up to £500,000, but in some areas your home may be reasonably expected to come in over that upper limit so it is worth keeping in mind from the beginning. To get a clearer idea of what Stamp Duty you might owe, using a stamp duty calculator can be a huge help.

It’s an easy way to estimate the costs and avoid surprises down the line. By inputting your property price and circumstances, you can quickly see what to expect, helping you budget more accurately. This kind of clarity can make a big difference when planning your finances for the purchase. There are plenty of resources available to understand how stamp duty applies and to prepare yourself for the future.

Renovations

On to the fun stuff! When you’re house-hunting you need to think about what work is going to need to be done within the home, what maintenance it is going to need, and how much it is going to cost you. Does it have the rooms that you need? Does it have solid wood flooring or laminate flooring? What kind of state is the garden in? Obviously not all jobs will need to be done as soon as you move in, but its worth having a mental list of the things that will need to be done straight away.

Extra Fees

Unfortunately, buying a house is always going to cost more than the cost of actually buying a house, because there are a lot of experts who will help you along the way and will require payment for their time and services. Between solicitors, surveyors and more, it can cost quite a bit more than you would think just to be able to get all of the paperwork together to be allowed to move in to the house.

New Council Tax Band

Moving to a new area means potentially moving to another Council Tax band, particularly if the type of property in which you live is changing too – for example a one bedroom apartment is generally going to be of a lower Council Tax band than a three bedroom house, even in the same location. It’s important to factor in your new Council Tax payment to your monthly budget, when working out how much you can afford on your monthly mortgage payments.

Do you own your house? What extra costs did you find when you moved? I’d love to hear your own insider information to help other first-time-buyers!