The cost of buying your new home

You will need to give careful consideration to the cost of paying a mortgage and rent as well as the additional costs for repairs and maintenance. You will require savings to pay the costs of the purchase and will then need to furnish your new home.

You will need money for:

• Survey – you may wish to have an independent survey that you must pay for.
• Legal Fees – you will need a solicitor or conveyancer to undertake the legal work.
• Deposit – if required
• Stamp duty – this is a tax on the transfer of property. If you are buying from an existing shared owner you will pay tax on the value of the share you are buying. If you are buying a new property from an association you will be advised to pay duty on the full value of the property.
• Removal costs – if you are moving from another property
• Furnishing costs – if this is your first home

• Mortgage repayments – repayments will vary according to the lender and the current interest rates.
• Rent – The monthly rent will be a proportion of the total rent assessed for the property. The rent will usually be reviewed each year.
• Council Tax – you will have to pay council tax to the local authority
• Repairs – if your home is a house, you will be responsible for all repairs and redecoration both internally and externally. If your home is a flat, you will be responsible for all repairs and redecoration internally. Your landlord will undertake to keep the building which houses your flat in good repair and will maintain communal areas. You will have to pay a share of the costs involved. This is called a service charge.
• Insurance – your landlord will insure the structure of your home (buildings insurance) but you will need your own contents insurance.
• Heating, lighting and water bills – you are responsible for your own bills.
• Fittings and furniture – you are responsible for supplying your own fittings and furniture and will need to protect them with contents insurance.

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