What Are the Major Upfront Costs of Buying a House in York?

The process of buying a property can be the most exciting but expensive commitment of your life. Therefore, it’s key you have a good understanding of the expenses that come with it. Be aware that all the varying costs can combine if you’re not cautious for instance you might find you are paying more for certain parts of the process than you initially thought.

Below we explore the different costs when it comes to buying a property in York.

Different Costs of Buying a Home in York

As a first time buyer in York, this article is brilliant if you are looking for a breakdown of all the costs you need to consider as well as what they mean.

If you are moving home in York, this is brilliant to read if you need to refresh on the costs that come with moving into a new property for you to prepare.

Valuation Fees

When you have put down an offer on the property in York and it’s been accepted, it’s then time for your lender to carry out a valuation on the property. By doing this, they can see if your offer truly reflects the value of the property. Factors that may impact your valuation include structural damage, property age, the local market, etc.

The cost of these surveys will vary depending on the type of valuation which can be from free to several hundreds of pounds. In some cases, you will be offered this for free, however, the price is usually incorporated into another cost or it may be part of a package when taking out a particular product.

There are many different types of valuations available and will vary in price depending on which one you choose. For instance, if you are looking at purchasing an older property, you will likely need to have a full structural survey which means you may need to pay a lot more compared to someone with a new build.

To find out more information about the range of surveys out there, check out our article here.

Mortgage Arrangement Fees

You may find that your lender will charge you for taking out a mortgage with them. This fee usually comes with the products with the cheapest rates. Keep in mind that not all mortgages will come with an arrangement fee but if they do, it may be a large fee like £999. This all comes down to the lender and the product.

Sometimes, customers are asked to pay this upfront or may have the option to add these to their mortgage balance. For those who choose to add them to their mortgage, this could attract further interest charges. Being a Specialist Mortgage Broker in York, we have access to a large panel of lenders which allows us to search through thousands of mortgage deals for you to find you the perfect product for your circumstance with as few additional costs.

Solicitor Fees

It’s key that you seek the services of a solicitor who can sort out the legal arrangement of the mortgage process. When it comes to the fees, these will be quoted differently depending on which firm. Usually, a low-value property is around £600. Whether it’s leasehold or freehold, you will need to show the solicitor the new property’s address as well as the purchase price to get quotations.

You need to make sure that:

  • The firm includes VAT
  • The cost of any “disbursements are included.” These fees include Land Registry Fees and Local Authority Search Fees
  • Is your solicitor on your mortgage lenders panel?

Estate Agency Fees

If you are selling a home in York, you’ll need to factor in estate agency fees. Currently, Estate agency fees are increasing along with property prices, it’s likely that you will be paying between 1-2% of the property price. You will be paying at least £500 to sell your home. Keep in mind that this may rise if you are looking for a more personalised service.

Stamp Duty

When you complete the process of a property purchase, the solicitor will collect a tax called Stamp Duty along with any solicitor’s fees and disbursements.

For more information regarding stamp duty check out the link here.

Broker Fees

A Mortgage Broker in York will likely charge a fee for their service. The good news is that you will be aware of the amount you’re paying and the amount it will cost before going ahead with the process.

Find a reputable company that charges upon completion only. Stay away from application fees where your money will be at risk.

Removal Fees

Removal fees can vary depending on the service you want, how far you’re moving and the amount of stuff you have! Either way, this will involve moving all your household items from your old property to your new property.

There is also the option to hire a van which can be a cheaper alternative as it will just be yourself moving the items. In some cases, this can cost less than £50. On the other hand, many people do like to pay for the full service so someone will pick up your belongings and help you move. This can be up to £1,000 for this type of service.

Get in touch with our team today who can book you in for a free mortgage appointment with a moving home mortgage advisor in York.

Date Last Edited: December 19, 2023