3 nasty housing costs

John Fitzsimons looks at the costs we forgot to consider when buying a property.

When the time comes to buy a property, there are plenty of costs that we prepare ourselves for. We know that we will need to hand over a big chunk of cash for the deposit, and we know that we might have to fork out on Stamp Duty too.

But there are other costs we might be hit by that we often overlook.

Legal fees

When getting a quote from solicitors for their services for the housebuying process, make sure they include disbursements. Disbursements are set legal costs that you’ll have to stump up for, on top of the solicitor’s usual fees.

The most expensive disbursements are the £200 Land Registry fee and the £50 Land Transaction form, but there are others which can soon add up to a fair bit of money.

Surveys

When it comes to surveys, homebuyers have the choice of a few options. You can go for the basic valuation, which is the cheapest option, and which the lender requires. However it’s generally a good idea, if you can afford it, to go for a Homebuyer’s Report. With a Homebuyer Report, the surveyor will actually go inside and inspect the property for any problems that may stand out.

Finally, there is the option of a full structural survey. With these the surveyor will have done some real investigating, and you’ll get back a mountain of information about the property, and any areas where you may need specialist work done.

Higher Lending Charge

Higher lending charges are basically insurance for lenders when they grant mortgages to borrowers with only a small deposit. What’s dubious about the higher lending charge is that you pay for it, but it only protects the lender!

You’ll be charged for the money they lend you above a certain loan-to-value, and at up to 9%, it can soon add up!

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