What other costs are associated with buying a property?
Now that we’ve covered the steps to buying your home, let’s talk about some of the costs that are associated with buying a property. In this way, you can avoid any unwanted surprises along the way.
Land Transaction Tax (LTT)
Land Transaction Tax (LTT), often referred to as Stamp Duty, is a form of tax that you pay when you buy land or property above a certain value. It is an additional cost that is calculated based on the purchase price.
Note that the LTT in Wales, varies to the Stamp Duty in England and the Land and Buildings Transaction Tax in Scotland. Read more about Welsh Stamp Duty and the different tax bands here.
Searches
Above, we already touched on the fact that your property lawyer/conveyancer will perform property searches on your behalf to help ensure that you, as a buyer, have all the information you need to feel secure in your property purchase. Depending on the council, the property and its environment, costs will vary, which is why it’s important to talk to a specialist to get a more accurate estimate.
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Surveys
Some mortgage lenders offer free surveys, but you may want to consider other options that help to ensure you know as much as possible about the state of the property you're buying. All surveys should be completed by an accredited surveyor from the Royal Institute of Chartered Surveyors.
There are four different types of survey:
- Level One Countrywide HomeFact® Report
- RICS Home Survey Level 2, previously known as the HomeBuyer Report
- RICS Home Survey Level 2 (survey and valuation)
- RICS Home Survey Level 3
To get a better understanding of each survey or get an instant quote, visit our in-depth explanation or surveys here.
Mortgage fees
There are usually two main types of mortgage-related fees - Broker fees and Lender fees.
Our Countrywide Mortgage Consultant will discuss any relevant fees with you before you choose to proceed. When arranging a mortgage through Countrywide, the following fees apply:
- Broker fee: a one-off fee payable to Countrywide Mortgage Services, for lifetime membership to our mortgage services, which comes with a number of benefits
- Administration fee: payable to Countrywide Mortgage Services, for handling all the administration on your mortgage application
Although some lenders do offer fee-free mortgages, others may come with associated costs The total fees payable will depend on your chosen lender, but may include:
- Arrangement fee: paid to the lender for arranging your mortgage. Can be added to the loan in some cases.
- Booking or reservation fee: often charged upfront, it reserves the mortgage you have been offered while your application is being processed.
Moving costs
Last, but certainly not least, you can’t forget about any moving costs you may need to take into account, including hiring a company to help you move or the time it may take to do it all yourself. There are professionals who will be able to safely and securely pack and move your belongings. Depending on who you use, this could come with the added benefit of being insured for any potential damage that could occur during your move.