What are the main costs to purchase a property?
Your primary costs include:
Key purchase costs
- Stamp duty land tax
You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland.
The level of stamp duty depends on a number of factors and is based on the value/price of the property. Use our stamp duty calculator for a review.
- Solicitors / legal fees
You will require a UK solicitor to act for you and the bank. The solicitor will complete several functions including:
- Completing all necessary searches on the property
- Advise on the legal aspects and ensure the property is legally ok to proceed
- Arrange the exchange and completion dates and post completion matters including paying the stamp duty
- Manage the money transfer. Your deposit and mortgage monies will be sent to your solicitor who transfers to seller’s solicitor on completion.
Solicitors’ fees vary according to the size and location of the firm and property value/price.
Your Springtide broker can provide quotations from our preferred panel of solicitors.
- Bank fee
The bank fee is charged by the lender.
Can range from £999 to 1% of the loan.
May have the option to add the fee to the mortgage so not an upfront cost.
- Mortgage valuation
The mortgage lender will require the property to be valued. This is completed via a basic mortgage valuation only. Certain lenders will cover the cost of this whilst others will pass this cost to you. The price will depend on the property value.
- Survey report
The survey is a more detailed inspection of the property. There are two levels:
- Level 2 – home buyer
- Level 3 – full structural report
The Level 2 is most common and advisable and Level 3 is only possible on houses.