Budgeting for the move is essential, the following is a guide to help you work out the costs and what to consider when you are moving home.
Stamp Duty Tax
This is a tax on buying property and the amount charged depends on the purchase price of the property. Click on the following link: Directgov for further information about stamp duty:
Stamp Duty Fees Payable
Freehold Sales and Transfers
|Property or Lease Premium or Transer Value||Rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
When you buy a new residential leasehold property you pay Stamp Duty Land Tax on the purchase price of the lease (the ‘lease premium’) using the rates above.
You’ll usually have to pay 3% on top of the normal Stamp Duty Land Tax and rates if buying a new residential property means you’ll own more than one.
When buying a property, solicitors’ fees can vary so, it is definitely worth shopping around and asking friends and family for recommendations. Make sure you ask for a fully inclusive quote as, on top of the solicitors fee, you will also have to pay a search fee (to check the property legally belongs to the seller and, other issues such as flood risks, landfill sites and pollution in the area) and a land registration fee (a charge on the purchase of the property related to the buying price). If you are selling a property as well, you can expect and additonal cost for this as well, so ask for a package price for both. Click on the following link The Law Societyfor help finding a local solicitor.
Finding the right mortgage can be daunting at the best of times. Our five top tips for getting the best mortgage will help you get started:
• Shop around: There are big differences between mortgage deals, so it always pays to compare costs.
• Total costs: Don’t just look at the headline interest rate – take into account all the fees you have to pay.
• Early repayment charges: Avoid mortgages with early repayment charges after the initial rate has ended so that you can switch to a better deal without charge at that point.
• Avoid extra interest: Be wary about adding extras like mortgage fees to your mortgage, as you will end up paying interest on them. If you can, pay these out of your savings upfront.
• Good advice: If you decide you need advice, make sure you consult an independent mortgage adviser or broker. However, some of the best deals are only available directly from the lender so always do your own research before speaking to an adviser and compare these results with the recommendations your adviser gives you. We can help you find an independent mortgage advisor, or you can find an independent mortgage advice by clicking on the following link: Unbiased.co.uk
Most mortgage lenders will also charge you a fee for a mortgage valuation, but remember this is not a detailed survey; it simply checks the property is valued correctly. Therefore you may want to consider paying an additional fee for a Homebuyer’s report, or a full structural survey which will throw up any serious defects. Either could save you money in the long run, especially in older properties. Surveyors’ fees vary but so shop around or speak to your mortgage adviser. We can also help you find a surveyor who is experienced in your local area, or click on the following link: The Royal Institute of Chartered Surveyors
The content of these pages should not be relied upon as a specific costs, advice or recommendations. It should be used for general information only purposes. We do not offer mortgage advice, nor does any information provided constitute financial advice. Always seek independent legal and financial advice before making any decisions.
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