To get an idea on what fees are payable while purchasing a property, here is some helpful information. This list is not exhaustive and it is worth double checking any fees you may need to pay.
-Reservation fee. If you have had an offer accepted on a New Build property, you may be asked to pay a reservation fee to secure the property. This is usually deducted from the purchase price on completion but is worth checking. Before payment, you may also want to check whether this is refundable.
-Advice fee. Some mortgage brokers or lenders will charge a fee for mortgage advice. Generation Home offer free mortgage advice on their products.
-Survey / Valuation fee. During the mortgage application, the lender will require a valuation to take place. This is usually paid for by the applicants. At the same time, you may wish to have a more detailed survey carried out and so it is worth being aware of the costs of this. Generation Home will cover the cost of your initial mortgage valuation.
-Product fee. A lot of lenders charge a product fee during the application process. It is worth checking whether your product includes a product fee. Generation Home offer products, with and without product fees. Speak with our mortgage advisors to discuss what's best for you.
-Searches. Part of the legal conveyancing process. Once you have received your mortgage offer, the solicitors will raise searches for you to ensure they are aware of any issues. The cost of these will be added to your solicitor's bill.
-Solicitors costs. A big part of the home buying process is the work that the solicitor does. You will need to be aware of the cost of their work and any additional payments that will be needed. You may see these being referred to by the solicitor as "disbursements".
-Independent Legal Advice. Income boosters and deposit boosters must receive Independent Legal Advice. This must be carried out by a solicitor independent from the purchase transaction.
-Stamp Duty Land Tax. On completion, your solicitor will also ask for payment of the stamp duty land tax. To find out more on what stamp duty you will need to pay, speak with your solicitor or an accountant. First-time buyers do not pay stamp duty on properties up to the value of £300,000.
-Estate agent fees. If you are also selling your home and moving to a new home, you may be using an Estate Agent to market and sell your current home. If so, do be aware that they will charge you a fee for their services.