Buying a home in Cumbernauld and Kilsyth: Budgeting for Fees
Out of all the purchases you make in your life, your home is likely to be the most expensive, but it’s not just the price of the property you need to take into account. When you purchase your new home in Cumbernauld or Kilsyth, you’ll have fees and other costs associated with the move to take into consideration. Make sure you budget well so that you don’t end up with a nasty surprise!
If you are looking to buy a home in Cumbernauld or Kilsyth, do make sure you take into account all the associated fees with your purchase. To help you, we’ve created this handy guide to the most common fees.
Land Buildings Transaction Tax (Stamp Duty)
Previously, Land buildings transaction tax (LBTT) was payable when you bought a home that cost over £145,000 although if you’re were a first-time buyer, you wouldn't pay LBTT on the first £175k. However, the LBTT thresholds have been increased until March 2021 in reaction to the Coronavirus pandemic so there is more money to be saved. See the changes in the table below.
||Transactions before 15th July 2020
||Transactions between 15th July 2020 – 31st March 2021
|Up to £145,000
|£145,000 - £250,000
|£250,000 - £325,000
|£325,001 - £750,000
LBTT is structured into tier’s and means buyers pay different rates of tax depending on the tax band the property price is in., so if it’s over £145K you pay 2% on any amount above that up to £250K, and if it’s over £250K its 5% tax on any amount up to £325K, 10% above £325K up to £750K and 12% on any amount above £750K .
There are also higher rates payable for people with second or buy to let homes. LBTT needs to be paid to the HMRC within 14 days of completing the process of buying a home, and your solicitor will usually deal with this, so make sure you’ve budgeted for it.
In Scotland vendors are required to provide a Home report that is made available for buyers . This includes a survey, Energy performance certificate (EPC) and a property questionnaire therefore you do not need to instruct and pay for a survey. However if you decide to get your own, there are three types of survey:
- Home condition survey – the cheapest and most basic survey. Suitable for new-build and conventional homes, but not useful for spotting any issues with the property. Typical cost: £250.
- Homebuyer’s report – a more detailed survey looking thoroughly inside and outside a property. It also includes a valuation. Check whether you can get the valuation and homebuyer’s report done at the same time to cut costs. Typical cost: £400+.
- Building or structural survey – the most comprehensive survey suitable for an older building or one of non-standard construction (for example, if it’s made of timber or has a thatched roof). Typical cost: £600+.
Whilst you can attempt to do your own conveyancing, it’s one of those things that isn’t recommended as it’s very tedious, involves a lot of legal terms, and if something goes wrong, you have very little comeback. Therefore, you should budget for conveyancing fees, which can vary from hundreds to a few thousand pounds depending on whether you are buying and selling or one or the other.
There are a number of costs you need to budget for when it comes to your mortgage.
- Deposit: This is usually the most costly part of moving. You’ll need to put down a deposit of between 5% and 20% of the property price. If you’re already a homeowner, then the deposit is usually paid out of the equity in your current home.
- Valuation fee: Some lenders will charge you a valuation fee so they can work out how much they’re willing to lend and some banks will waive this fee.
- Transfer fee: Many mortgage providers add a fee of around £40-50 to transfer the money to your solicitor for the property purchase.
- Arrangement fees: These are the fees charged to set up a mortgage, and they can range from a few hundred to a few thousand pounds. In some cases, you can find mortgages with no arrangement fee, and some lenders will give you the option to add the fee to the overall cost of the mortgage. Keep in mind that if you add the fees to your mortgage, you’re likely to pay more due to interest on the combined figure.
It’s definitely worth shopping around when it comes to mortgages, and considering using a broker, as fees can vary and you’ll want to secure the best deal.
It’s worth getting some quotes and choosing not just the cheapest removal company, but the one that has the best reputation and offers best value for money. Some removal firms offer extras such as boxes and packing, which can be helpful when you’re busy dealing with all the other paperwork and stress!
Some people choose to hire a van and do the move themselves, but anyone who has done this will no doubt tell you it’s not always ideal. On the day of completion, you’ll be busy dealing with solicitor calls and trying to get the keys to your new home, so you won’t want to have the responsibility of loading up the van and unloading at the other end! Leave it to the professionals.
Repairs and decorating
Even if your new home appears perfect, when you move in, there are bound to be a few things that might need to be fixed and of course you’ll probably want to redecorate, so it’s a good idea to budget for this.
Moving home can come with a lot of fees, not to mention paperwork, but once you’re comfortably settled in your new home, you’ll realise that it was worth all of the stress.
For a wide range of properties for sale in Cumbernauld and Kilsyth, contact Yendor Homes on 01236 316004 or message me today about your next home.