The costs involved in buying a house can be a lot more than you initially think. Here we talk about the legal costs involved.
Q How much are the legal costs?
A Legal costs can vary depending on the area you’re selling and buying. If you are selling and buying in London for example you can expect to pay higher legal costs than elsewhere in the country.
The things that affect legal costs are:
Whether you’re purchasing or selling a leasehold property rather than a freehold property. If the property is leasehold there is more work involved for both the selling and the buying perspective, so your legal costs might be slightly higher.
If you’re getting a mortgage the solicitor also must act on their behalf and do checks for them, so that can also mean that the costs are slightly higher if you’re buying with a mortgage.
Legal costs should be fixed at the start, so it is what you should pay on completion. Some solicitors do offer a ‘no completion no fee’ service, so if the sale or purchase falls through you don’t pay anything.
Q What is the largest cost?
A.The largest cost is stamp duty. There are several rules concerning stamp duty, especially if you’re buying an additional property, so it’s very wise to get a good idea of that cost before looking to purchase. There are also reliefs available for first time buyers, so it’s good to get an idea of what you’re going to be paying.
Q Who pays for the cost of the sale if the sale falls through?
A Before the buyers and sellers commit to the transaction by exchanging, you are responsible for your own costs. If it’s a leasehold, there’s a management pack which can be around £200, but if you’re purchasing you generally have to pay out for searches, any surveys undertaken and mortgage arrangement fees. If the transaction falls through before it exchanges, you will be responsible for those costs and you can’t recover those
The costs of buying a new home can mount up. Take a look at the costs of buying a house calculator for more information.
If you have any questions about house buying costs, please post them below.