{"id":12723,"date":"2017-11-01T15:32:25","date_gmt":"2017-11-01T15:32:25","guid":{"rendered":"https:\/\/www.thehouseshop.com\/property-blog\/?p=12723"},"modified":"2018-02-13T06:02:41","modified_gmt":"2018-02-13T06:02:41","slug":"hidden-costs-of-buying-a-house","status":"publish","type":"post","link":"https:\/\/www.thehouseshop.com\/property-blog\/hidden-costs-of-buying-a-house\/","title":{"rendered":"Hidden Costs of Buying a House"},"content":{"rendered":"\n<!-- SEO Ultimate Plus (https:\/\/seoultimateplus.com) - Code Inserter module -->\n<script async>(function(s,u,m,o,j,v){j=u.createElement(m);v=u.getElementsByTagName(m)[0];j.async=1;j.src=o;j.dataset.sumoSiteId='b68b392479b5981b8acf46565e9fe32a0734fc21a1f7c1e60121eaa6ca1a1c64';v.parentNode.insertBefore(j,v)})(window,document,'script','\/\/load.sumo.com\/');<\/script>\n<!-- \/SEO Ultimate Plus -->\n\n<p>Buying a <a class=\"wl-entity-page-link\" title=\"houses\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/house\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/house;http:\/\/rdf.freebase.com\/ns\/m.03jm5;http:\/\/dbpedia.org\/resource\/House\" >house<\/a> is probably one of the most expensive purchases you will ever make in your life. It\u2019s a very fulfilling and exciting stage since this is the place where you plan to be living for a very long time.<\/p>\n<p>Saving up and preparing your budget for this investment plays a significant role in ensuring that the transition is as smooth as it can be. However, there are hidden costs associated with buying a house that you\u2019re probably not aware of.<\/p>\n<p>Knowing what these costs are and being one step ahead of them will make sure you don\u2019t get any unwanted surprises.<\/p>\n<h2>Stamp Duty<\/h2>\n<p>Buying a <a class=\"wl-entity-page-link\"  href=\"https:\/\/www.thehouseshop.com\/property-blog\/property\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/property;http:\/\/rdf.freebase.com\/ns\/m.05wrt;http:\/\/dbpedia.org\/resource\/Property\" >property<\/a> that costs more than \u00a3125,000 will require you to pay the <a href=\"https:\/\/www.gov.uk\/stamp-duty-land-tax\">Stamp Duty Land Tax (SDLT)<\/a>. The amount that you pay is determined per bracket in relation to how much the property is.<\/p>\n<p>For example, if the property costs between \u00a3125,001 and \u00a3250,000, the SDLT is 2%. \u00a3250,001 to \u00a3925,000 is 5%, \u00a3925,001 to \u00a31.5 million is 10%, and anything over that is 12%. To make life easier, use HM Revenue and Customs\u2019 <a href=\"https:\/\/www.tax.service.gov.uk\/calculate-stamp-duty-land-tax\/#\/intro\">calculator<\/a> to know exactly how much you have to pay.<\/p>\n<p>The Stamp Duty only applies to properties located in England, Wales, and Northern Ireland that are on <a class=\"wl-entity-page-link\" title=\"Freehold (law)\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/freehold-law\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/freehold_law;http:\/\/rdf.freebase.com\/ns\/m.03w9s7h;http:\/\/dbpedia.org\/resource\/Freehold_(law)\" >freehold<\/a>, <a class=\"wl-entity-page-link\" title=\"tenant\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/leasehold-estate\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/leasehold_estate;http:\/\/rdf.freebase.com\/ns\/m.03jg1x;http:\/\/dbpedia.org\/resource\/Leasehold_estate\" >leasehold<\/a>, shared residential ownership, or transferred property (or land). If the property is located in Scotland, you do not have to pay Stamp Duty. Instead, it is the <a href=\"http:\/\/www.gov.scot\/Topics\/Government\/Finance\/scottishapproach\">Land and Buildings Transaction Tax<\/a>.<\/p>\n<h2>Survey\/Valuation<\/h2>\n<p>A <a href=\"https:\/\/www.barker-associates.co.uk\/guide-to-home-and-building-survey\">survey or valuation<\/a> is a health inspection of a property that is carried out by a chartered <a class=\"wl-entity-page-link\" title=\"Surveying\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/surveying\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/surveying;http:\/\/rdf.freebase.com\/ns\/m.0gjm7;http:\/\/dbpedia.org\/resource\/Surveying\" >surveyor<\/a>. It can cost anywhere between \u00a3150 to \u00a31,500 based on the property\u2019s value.<\/p>\n<p>The <a class=\"wl-entity-page-link\" title=\"prices\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/price\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/price;http:\/\/rdf.freebase.com\/ns\/m.01d_1l;http:\/\/dbpedia.org\/resource\/Price\" >price<\/a> will also vary whether you\u2019re getting a full <a href=\"https:\/\/www.thehouseshop.com\/surveys\" title=\"structural survey\">structural survey<\/a> or a basic one. The former is more expensive, but it\u2019s to your advantage as you will be in a much better position to take legal actions should they miss an issue with the house.<\/p>\n<p>Most mortgage <a class=\"wl-entity-page-link\" title=\"Loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/loan;http:\/\/rdf.freebase.com\/ns\/m.01dnzs;http:\/\/dbpedia.org\/resource\/Loan\" >lenders<\/a> will expect you to pay for this while some may not. It all depends on the type of mortgage product you choose. The result of the survey is beneficial to the lender because it confirms that the property you\u2019re buying is worth what you\u2019re paying.<\/p>\n<h2>Mortgage Arrangement Fees<\/h2>\n<p>An arrangement fee is what you pay for the lender to set up your <a class=\"wl-entity-page-link\" title=\"Mortgage loan\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/mortgage-loan\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/mortgage_loan;http:\/\/rdf.freebase.com\/ns\/m.0273t5w;http:\/\/dbpedia.org\/resource\/Mortgage_loan\" >mortgage<\/a>. The average cost is \u00a31,000, but it could vary, and you may even be charged up to \u00a32,000. Payment is done either upfront or added to the mortgage.<\/p>\n<p>If you have the money, it would be best to pay these fees upfront rather than have them added to your mortgage. This way, you will not have to pay interest on them for the life of the loan.<\/p>\n<p>This fee also comes in two types &#8212; flat fee or as a percentage of the loan. If you\u2019re going for a large mortgage, percentage fees will cost you a <a class=\"wl-entity-page-link\" title=\"Land lot\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/land-lot\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/land_lot;http:\/\/rdf.freebase.com\/ns\/m.0gs32y;http:\/\/dbpedia.org\/resource\/Land_lot\" >lot<\/a>.<\/p>\n<h2>Electronic Transfer Fee<\/h2>\n<p>Also known as CHAPS (Clearing House Automated Payment System) fee, this covers the lender&#8217;s cost for transferring the mortgage money from the lender to the solicitor. It usually ranges between \u00a340 to \u00a350.<\/p>\n<p>It\u2019s a fast, reliable, and secure method of guaranteeing same business day payment of cleared funds.<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-12725\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins.jpeg\" alt=\"Copper Coins\" width=\"525\" height=\"350\" srcset=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins.jpeg 525w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-260x173.jpeg 260w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-100x67.jpeg 100w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-150x100.jpeg 150w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-200x133.jpeg 200w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-300x200.jpeg 300w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Copper-Coins-450x300.jpeg 450w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/p>\n<h2>Conveyance<\/h2>\n<p><a href=\"https:\/\/www.thehouseshop.com\/conveyancing-quotes\" title=\"conveyancing\">Conveyancing<\/a> is the legal process of transferring <a class=\"wl-entity-page-link\" title=\"Owner-occupier\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/owner-occupier\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/owner-occupier;http:\/\/rdf.freebase.com\/ns\/m.020s_n;http:\/\/dbpedia.org\/resource\/Owner-occupier\" >home ownership<\/a> from the seller to the buyer. It starts when your offer for a house is accepted and is completed when you finally move in.<\/p>\n<p>The one who conducts the conveyancing process is called a solicitor or conveyancer. Although it\u2019s possible to do it yourself, you can only do so if you\u2019re not taking out a mortgage.<\/p>\n<p>This legal process involves a few legal <a class=\"wl-entity-page-link\" title=\"Stairs\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/stairs\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/stairs;http:\/\/rdf.freebase.com\/ns\/m.01lynh;http:\/\/dbpedia.org\/resource\/Stairs\" >steps<\/a> from transferring title deeds to finalising your mortgage arrangement.<\/p>\n<h2>Legal Fees<\/h2>\n<p>Aside from assisting you in the transferring of home ownership, a solicitor will also charge you for other fees which can range anywhere between \u00a3450 to \u00a31500.<\/p>\n<p>These legal fees are for the following services:<\/p>\n<ul>\n<li>Local Authority Searches<\/li>\n<li>Checking of the \u2018title plan\u2019 and \u2018title register\u2019 at the <a class=\"wl-entity-page-link\" title=\"Land registration\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/land-registration\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/land_registration;http:\/\/rdf.freebase.com\/ns\/m.08xnz_;http:\/\/yago-knowledge.org\/resource\/Land_registration;http:\/\/dbpedia.org\/resource\/Land_registration\" >Land Registry<\/a><\/li>\n<li>Checking floor risk<\/li>\n<li>Water authority searches<\/li>\n<li>Chancel repair search<\/li>\n<li>Environmental search<\/li>\n<\/ul>\n<h2>Booking Fee<\/h2>\n<p>This is a fee that\u2019s charged upfront by some lenders. It\u2019s sometimes called an application fee or reservation fee which can cost at least \u00a3100 to \u00a3200.<\/p>\n<p>The fee is used to secure a fix-rate, tracker, or discount deal. You pay this fee as soon as you submit your application. It\u2019s also worth noting that this fee is non-refundable, regardless if you take the mortgage out or not.<\/p>\n<h2>Land Registry Fee<\/h2>\n<p>The Land Registry Fee can cost up to \u00a3500 depending on the price of the property. The money goes to the Land Registry via your solicitor and is paid upfront.<\/p>\n<p>If you\u2019re buying a new house, this fee is used to register the property under your name. If the property had a previous owner, the Land Registry charges this fee to transfer the registry entry to you.<\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" class=\"aligncenter size-full wp-image-12728\" src=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost.jpeg\" alt=\"Hidden Cost\" width=\"472\" height=\"350\" srcset=\"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost.jpeg 472w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-260x193.jpeg 260w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-100x74.jpeg 100w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-150x111.jpeg 150w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-200x148.jpeg 200w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-300x222.jpeg 300w, https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-450x334.jpeg 450w\" sizes=\"(max-width: 472px) 100vw, 472px\" \/><\/p>\n<h2>Property Fraud Fee<\/h2>\n<p>Although this fee will not cost you much and is optional, it\u2019s still worth paying for. It\u2019s just \u00a310 per fraud check which is done by your solicitor.<\/p>\n<p>Unfortunately, <a class=\"wl-entity-page-link\" title=\"Home\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/home\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/home;http:\/\/rdf.freebase.com\/ns\/m.01l0mw;http:\/\/dbpedia.org\/resource\/Home\" >homes<\/a> sales can also be a target for fraud. Better be safe than sorry.<\/p>\n<h2>Factoring Fee Deposit<\/h2>\n<p>This fee only applies if the house that you\u2019re buying has a shared stairwell and gardens. You may have to pay \u00a350 or more when you move in, and this is a monthly fee.<\/p>\n<p>It is used to keep shared spaces clean with someone looking after them.<\/p>\n<h2>Repairs<\/h2>\n<p>Most of the time, you only pay for repairs if the house had a previous owner. Of course, major repairs that need to be done would have been known to you through the survey done by your solicitor.<\/p>\n<p>The cost will vary based on what needs to be repaired, as well as the contractor that you hire. It is highly advisable that you look into these possible repair costs before deciding to buy a property.<\/p>\n<h2>Conclusion<\/h2>\n<p>If you\u2019re planning to buy a house anytime soon, I encourage you to do your due diligence. Always ask and verify if the fees mentioned apply to you, regardless if they\u2019re mandatory or not. Paying off a mortgage is no easy feat, and it would only get harder with hidden costs you\u2019re unaware of.<\/p>\n<p>&nbsp;<\/p>\n<h2>Author Bio<\/h2>\n<p>Emma Metson is a part-time property <a class=\"wl-entity-page-link\" title=\"Real estate development\" href=\"https:\/\/www.thehouseshop.com\/property-blog\/real-estate-development\/\" data-id=\"http:\/\/data.wordlift.io\/wl0502\/entity\/real_estate_development;http:\/\/rdf.freebase.com\/ns\/m.028sdw;http:\/\/dbpedia.org\/resource\/Real_estate_development\" >developer<\/a> who loves sharing how others can make their homes amazing both inside and out on her blog <a href=\"http:\/\/www.fixturesandflowers.co.uk\/\">Fixtures and Flowers<\/a>. You can chat to Emma on <a href=\"https:\/\/twitter.com\/MetsonEmma\">Twitter.<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a house is probably one of the most expensive purchases you will ever make in your life. It\u2019s a very fulfilling and exciting stage since this is the place where you plan to be living for a very long<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.thehouseshop.com\/property-blog\/hidden-costs-of-buying-a-house\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":41,"featured_media":12724,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wl_entities_gutenberg":"","_lmt_disableupdate":"","_lmt_disable":"","spay_email":""},"categories":[7,15,11,1,13,16],"tags":[],"wl_entity_type":[602],"modified_by":null,"_wl_alt_label":[],"jetpack_featured_media_url":"https:\/\/www.thehouseshop.com\/property-blog\/wp-content\/uploads\/2017\/11\/Hidden-Cost-of-Buying-a-House-Image.jpg","wl:entity_url":"http:\/\/data.wordlift.io\/wl0502\/post\/hidden_costs_of_buying_a_house","_links":{"self":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/12723"}],"collection":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/comments?post=12723"}],"version-history":[{"count":6,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/12723\/revisions"}],"predecessor-version":[{"id":14014,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/posts\/12723\/revisions\/14014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media\/12724"}],"wp:attachment":[{"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/media?parent=12723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/categories?post=12723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/tags?post=12723"},{"taxonomy":"wl_entity_type","embeddable":true,"href":"https:\/\/www.thehouseshop.com\/property-blog\/wp-json\/wp\/v2\/wl_entity_type?post=12723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}