Buying a home
Things to consider if you are buying a home
House Purchase Costs:
Stamp duty is payable on all purchases of land & property over a purchase price of £175,000 (up from £125,000). The £175,000 will remain in place up to and including 2nd September 2009.
The current bands and rates applicable are as follows:
| Purchase price | Tax payable |
| £0 - £175,000* | 0% |
| £175,000* - £250,000 | 1% of purchase price |
| £250,001 - £500,000 | 3% of purchase price |
| Over £500,000 | 4% of purchase price |
*previously £125,000 and the current threshold of £175,000 will remain in place up to and including the 2nd September 2009.
Legal costs:
A solicitor/conveyancer will act in your interests in both the purchase and sale of a property. If a mortgage is involved, the solicitor/conveyancer can also usually act on the lenders behalf if the firm is not a sole trader. Certain re-mortgage facilities offer free conveyancing as part of the package, which may or may not be to your advantage. There are certain costs for searches and land registry charges, (known as disbursements) and these will be charged in addition to the solicitors charges.
Survey fee:
The lender will insist on a valuation to ensure that the property is worth the purchase price being asked and that it is in such a condition to lend upon so that the lender can recover the the outstanding mortgage amount should you default on the loan repayments.
There are three levels of survey:
- Basic valuation survey: A basic survey to confirm the property is offers adequate security for lending purposes.
- Homebuyers Report Survey: Intermediate detailed survey inspecting and reporting on the overall condition and potential repairs/faults which may require further investigation.
- Full structural survey: A full structural survey is a thorough investigative report on the overall external and internal condition of the property. This is the most expensive of the survey options and is primarily used to ascertain the condition of older type properties such as period properties, those of timber framed construction or those properties whose structural integrity is in doubt.
Buildings and Contents insurance:
The lender will insist on the property being insured against loss as a condition of the mortgage. You do not have to accept the insurance offered by the lender. You can source your own buildings and contents Insurance, however, the lender may make a one off charge to check your policy.
Solicitors and Surveyors are not regulated by the Financial Services Authority. A fee may be payable.
If you would like a competitive quotation please go to our insurance page
For more information please call Telephone 0800 043 042 7
