Are you planning to buy a new property? If yes, then this can be more expensive than expected. You will come across different hidden costs that should be taken into account as they add up to almost 10% extra to additional costs. Previous renters often feel shocked at how much it costs to purchase a property and without the right preparation, you will face real hardships.
Conveyancing
This is the official procedure of purchasing a property, searching for fees and joining the Land Registry.
There arises an important question, ‘How much will this cost?’ Well, this actually depends on the value of property you want to purchase and what kind of search you have done for it.
Valuations/surveys
According to estate agents in Mayfair, these may add up quickly, starting from some hundred pounds to more than £1000, depending on your property’s value.
Stamp duty
This is the tax levied on legal documents and may add nearly 7% extra to the total cost of purchasing a property.
Mortgage fees
Apart from mortgage, other upfront fees are:
• Arrangement fees: These are charged by mortgage companies and some lenders prefer it paid up front while others add it with the mortgage.
• Indemnity fees: If you had higher loan-to-value ratio, then the lender might charge a fee that covers insurance they take out if you fail to repay the loan.
• Broker fees: Some brokers do not charge any fees while others may charge nearly 1% of your mortgage.
Removals
If you do not have lots of furniture, then the work can be done at lesser cost. However, if you have many furniture, hiring a removal firm is the right option. Though it might be costly, with proper research you can choose a company that will meet your requirement within the estimated budget.
Some do’s and don’ts before property viewing
According to O'sullivan Property Estate Agents Mayfair, property viewings are something rare for the ones who see them online to collect valuable information that you will not find anywhere else.
Do’s
• See at different times of the day – This is mainly due to how light and noise levels may differ during the day. You should try your visiting time around the day as much as possible.
• Check for dampness – You need to keep a keen eye for things such as bubbling paint, mould and peeling wallpaper as these are some signs of dampness.
• Test fittings and fixtures – Do not feel afraid to be stuck in and try to test everything possible for opening the windows, switching on taps and lights, etc.
• Look outside of the house – It is easy to be caught with what is inside the property. Spend some time outside of the house to find any probable structural issues. Get in touch with a professional who conducts property survey to be sure that it is worthy to live in that property.
• Stick to your wish list – If you have already created a property wish list, make sure you follow it so that you can get what you want from the next home.
• Open cupboards – It is necessary to know if there is sufficient space for storage.
• Take a camera – you should not rely on your memory only rather, try to consult with your photographs to compare between different properties and probably find out something that you might have missed initially.
• Remember your furniture – The furniture you wish to take will fit in the property you are viewing at present.
Don’ts
• Do not rush ahead – When viewing a property, take as much time as you want to ensure you have good idea of what each room and the area is about.
• Do not be easy to delay by faults – If you find any fault on the property, try to negotiate a better price for it.
• Do not see a property on your own – Take your friend or family member for the second opinion before selecting a property.
• Do not take decisions in a hurry – Estate agents of O'sullivan Property have said, it is quite easy to be carried away at the first view itself. However, you need to go for a second and third visit too before rushing ahead.
• Do not desist from asking questions to the seller – If you have some question in your mind that can make or lose your interest, then ask the seller immediately.
Thus, keep in mind the above-discussed things to know the hidden costs when purchasing a property.
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