Paying a mortgage can seem expensive enough if you are a first-time buyer, but there are other costs you will need to consider before you can even move into your new home. Here is a guide to the costs you will need to budget for.
As soon as you have an offer accepted on a property, you will need to find a solicitor to deal with the legalities of buying your home. They will conduct searches to make sure the property is built on suitable land and that there are no issues which could adversely affect your property. They will liaise with your seller’s solicitor and transfer the ownership of the property to you. They will charge you several hundred pounds to do all this work. Get a quote upfront so that you can budget for this expense.
Stamp duty is a government tax that is charged when you buy a property. You will need to pay this via your solicitor, but the money will go to HMRC. The amount you must pay will depend on how much you buy the property for, but your solicitor will be able to let you know how costly this will be and you will need to factor in this expense.
You will need to have buildings insurance set up from the exchange of contracts, as this is the point at which you are legally obliged to purchase the property. If you are buying a flat, your buildings insurance will probably be included in your lease so you will not have to purchase this separately. Ask your solicitor to check this for you. You will need to set up contents insurance from the date you move to cover your personal belongings and furniture. Use a comparison website such as Quotezone for cheap home insurance as they can search the whole market for you and get you the best cover for the best price.
You will need to think about how you will move your belongings to your new home so that you can factor this into your costs. It may be that you do not have a lot and you will rope some friends in to help you. Buying beers in return is usually appreciated. If you have more to move, you may need to consider hiring a van and, if it is a big move, it may be a good idea to let a removal company do the work for you. Whichever option you choose will come with some costs, so consider these carefully.
If you have moved to a bigger property than you had before, you may need to consider buying some furniture to go in your new home. This can be as cheap or expensive as your budget will allow but the chances are you will need a few new things. Going shopping is fun if you have the money to spend, so plan your budget.
These are the five main costs you will need to consider when moving into your first home. If you plan for these and budget accordingly, they don’t need to be unexpected expenses and you won’t be in for a nasty shock when you receive the bill.