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North Berwick - 01620 892138 Dunbar - 01368 862746Talk to us today, call your local office
North Berwick - 01620 892138 Dunbar - 01368 862746As the better weather (hopefully) starts to roll around and more properties are placed on the market, you may be wondering about what financial implications there may be for you when you are considering buying a house. Paris Steele aim to make the process as stress free as possible and with that in mind, we have broken down the main costs of purchasing a house:
1. Legal Costs
You will need a solicitor to carry out the legal work when buying your home. Legal fees are normally dependant on the purchase price of the property but typically range between £795 and £1,195 excluding VAT at 20%. We have discounted rates available for first time buyers. We will also carry out searches including a legal report to determine what burdens and securities may affect the property and a property enquiry certificate to determine if any legal notices affect the property as well as if the roads and drains of the property have been adopted by the local authority. A coal mining report may also be required, depending on the location of the property. These searches typically cost in the region of £250-£300.
2. Telegraphic Transfer Fee
Due to money laundering legislation, when you are buying a house, all of the funds have to pass through the firm carrying out your conveyancing. Funds must move quickly on the day of completion and so they must be sent via Telegraphic Transfer. The firm will be charged by the bank for doing this, normally incurring a charge between £20 and £30.
3. Land and Buildings Transaction Tax (LBTT)
LBTT is a tax applied to residential land and buildings transactions and it is a progressive tax which becomes payable when purchasing a property over £145,000. It must be paid before a conveyancer can register you as proprietor of your new house. Purchasing a property at £250,000 for example, would attract an LBTT charge of £2,100. First time buyers can also receive a relief of up to £600 in relation to LBTT.
4. Land Registry Fees
On completion of your purchase, your solicitor will register you as proprietor of your new property at the Land Registry, which incurs a fee. The fee is dependent on the value of the property and ranges from £240 for a property value up to £150,000, to £600 for a property worth up to £500,000. If you take out a mortgage to purchase the property, you will grant the bank or building society a standard security over the property which also needs to be registered with the Land Registry. This fee is fixed at £60.
5. Other costs
Separate from the above fees, you will also want to consider the deposit amount due to a lender if you are taking out a mortgage which is on average 5-20% of the purchase price. Lenders may also wish to carry out their own valuation or survey of the property. You may also have other mortgage costs, removal costs and ongoing costs such as factoring fees, insurance and council tax.
If you would like more information regarding anything mentioned above, or if you have any further questions, please feel free to contact one of our offices where we will be more than happy to help guide you through the exciting process of buying a home.
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