When thinking of buying a new property, the deposit is the biggest expenditure you are likely to
have. You may have been saving for quite a while, putting savings away each month and have
reached that all-important target – congratulations!

When you are working out your ‘buying a house’ budget, there are also other fees, including moving
fees and mortgage fees for example, that need to be included. It all adds up and can easily plunge
you into debt if an unexpected bill hasn’t been taken into consideration.

Here’s what you need to know about and budget for:-

• Mortgage Fees: On top of your deposit, you need to take into account the charges that your mortgage provider will require as part of the application process. These can vary from a few hundred pounds to several thousand. If you shop around though, you can find mortgage deals that are starting to look more affordable. We recommend speaking to Victoria Black at Mortgage Solutions on 01423 787 0077
• An electronic transfer fee is often applicable when the mortgage is paid out. This is in the
  region of £50
• Surveyors' fees: This may be viewed as a necessary evil to comply with your mortgage. Having a professional survey undertaken could save you thousands of pounds in the long run. A basic survey could be as little as £200 to £300. You can pay extra for a homebuyer's report or even a full structural survey – this may expose issues with the property that, going forward, may cause you headaches in the future.
• Legal fees: You will require a solicitor to carry out the legal searches on your property. This covers local, environmental and water and could unearth flooding, planning permission, neighbour dispute, etc. Fees for these are typically less than £200.
• The solicitors' purchase fee could cost around £1000 plus, depending on your purchase. For example,
  buying a leasehold property would cost more than a freehold. The solicitors' fee may also include additional costs such as ‘Help to Buy ISA’, where a gift has been provided, etc.

Stamp Duty Fees

• Stamp Duty: Depending on the purchase price of your property, you will need to pay stamp duty to the Government. To find out how much stamp duty you are likely to be paying, please take a look at the Government stamp duty calculator online.
• Estate Agent fees: You only pay Estate agent fees if you are selling a property. If you are a
  first-time buyer, you don’t need to budget for this. The fees are typically around 1%; however, at
  David Phillip Estate Agents we operate a fixed rate fee. This means that you are aware of what
  the fees are right from the outset. VAT is charged on top of this and is not payable until the completion of the sale. Fixed fees at times when the economy is a challenge certainly enable
  you to budget your property purchase more efficiently.

Moving Costs

• Moving costs: Unless you are prepared to rent a van and move yourself, then you will need to budget for a professional removal company. You may also need storage costs. If there is a gap between moving from your current house and moving into your next property, we can recommend several companies in North Leeds.
• Decoration and refurbishment costs: It is worth being clear exactly what is included within the
  sale, this is part of the fixtures and fittings form. Anything noted in the property advert is
  included. If you need to buy carpets, curtains, curtain rails and more, these can quickly eat into
  your budget. Where possible, always get quotes up front.

You have now saved your deposit and accounted for all the costs, so now it is time to find the
perfect place to live, and if you have a house to sell in the process and require a free market
appraisal call David Phillip Estate Agents on 0113 4676 400

w: davidphillip.co.uk
a: 86, Leeds Road, Bramhope, Leeds, LS16 9AN

Selling Houses in Leeds and covering Bramhope, Adel, Cookridge, Pool-in-Wharfedale, Otley and
North Leeds