THE COSTS

Deposit

As well as the deposit, there are other costs to take into consideration when working
out how much you can afford to pay for your home. This section explores these costs
in more detail.

Legal Expenses

You pay for a solicitor or licensed conveyancer to make sure that the property deeds
are transferred into your name. This should also include carrying out a local search
of the area the property is in, to ensure that there are no special building restrictions
or any plans to build a motorway through it. See here for a rough guide of costs.

In addition there are Land Registry fees making you the legal owner of the property,
and Stamp Duty (1% tax on properties over £60,000) so your rights as the legal
owner of the property are recognised.

Mortgage Indemnity Guarantee Premium

This is normally payable if the mortgage is for more than 75% of the property's value.
It covers the higher risk that the lender is taking by offering a loan, often added to loan.

Property Valuation & Survey Fees

This must be carried out so the mortgage lender can ascertain the size of loan it is
prepared to make for the property. Its cost varies between £180-£380 and is based
on the size of the property and detail you require within the report.

Since there is no recourse once you have bought your home, a fuller survey is
recommended before buying it to make sure the property is not suffering from
structural problems such as subsidence, dry rot or vermin.

We highly recommend that such reports are arranged independent of your lenders one.

See here for a guide to arranging a Home Buyers or Full Structural report on your home.