When buying a property, whether as a first time buyer, moving up the property ladder, or as a buy to let property, the most important cost that you’ll have to factor into your finances is the mortgage. You’ll need to make up the initial deposit and then meet the monthly mortgage payments. However, before the sale is completed there are a number of extra factors you’ll need to consider; all of which can cost you money.

Here’s a quick rundown of what you should expect.

Mortgage application fee

Generally, most lenders will apply an application fee when applying for a mortgage. These vary in cost; however you should expect to pay at least £99. This is a non-refundable fee meaning that if your purchase doesn’t actually go through, you’ll still be required to pay it.

Survey

When securing a mortgage, the lender will require information regarding the property. This information will also be important to you, as it will help you decide whether you want to progress with the purchase, or re-negotiate the offer (if any issues have been found).The price you pay for the survey will depend on the level of detail you choose, ranging from a basic valuation (required for your mortgage) to a full structural survey. In terms of cost, surveys range from anything between £100 and £1,000 and prices are often linked to the value of your property.

Opting for a higher valued survey, such as the full structural option, might seem like an unnecessary expense in the face of much cheaper options. However if serious structural problems are uncovered before you buy, this could significantly cut the price of the property or reveal the instability of the investment, so you should seriously consider all options available to you.

Stamp Duty

If you’re purchasing property over a certain value in the UK, you will be required to pay Stamp Duty Land Tax (charged on all purchases of houses, flats, and other property).  The amounts of Stamp Duty required to be paid can be broken down into the following1:

• Up to £125,000 – 0%

• Over £125,000 to £250,000 – 1%

• Over £250,000 to £500,000 – 3%

• Over £500,000 to £1million – 4%

• Over £1million to £2million – 5%

• Over £2million – 7%

1https://www.gov.uk/stamp-duty-land-tax-rates

Solicitors’ fees

You may need your solicitor for a variety of things when purchasing property, including carrying out checks with local authorities, finalising the terms of the contract and transferring the money on completion.

At this stage, it’s vital to factor in all of the additional costs associated with purchasing property, so you may wish to contact a selection of solicitors to obtain a quote.