The Cost of Buying a House: Example

by | Jan 16, 2016 | Blog

It’s not something that is often shared as discussing finances can be seen as taboo. Here at NC Real Estate we want you to have the real picture of how much it could cost you to buy a property. The aim of this blog is to give you a worked example, this you can then use to budget for the next property you buy.

We have just brought and completed the refurbishment of a two bedroom flat in the centre of Bath, the purchase price was £255,000 and we put down a 20% deposit. The refurbishment included new kitchen, carpets and furniture – the whole property was decorated and new more energy efficient storage & electric heating was installed. We turned a dated flat into a modernised, cosy, city-center pad.

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The total cost (£) of this was:

  • Deposit 51,000.00
  • Solicitors 900.00
  • Solicitors Acting for Lender 210.00
  • HM Land Registry 135.00
  • Local, chancel, drainage, environment search 290.93
  • Bank transfer fee 42.00
  • Bankruptcy Search Fee 2.00
  • Land registry search 3.00
  • Stamp Duty 2,750.00
  • Mortgage Broker 500.00
  • Mortgage fees 240.00
  • Refurbishment 14,257.30

Total Expenditure 70,330.23

Yes, that is a lot of money (and we don’t want to scare you!), but there are a number of variables that could change depending on your purchase circumstance:

  1. Your deposit will be a % of the cost of your property, it doesn’t have to be 20% it could be 5% or 10% – change this in accordance to your circumstance.
  2. Your solicitors fees will vary depending on the firm you use – get a quote before you instruct them.
  3. Stamp Duty Land Tax – this will vary depending on the price of your property, use a SDLT calculator to get an exact cost.
  4. You may not use a mortgage broker and the fees may vary – however make sure you have this information as the mortgage fees will be charged prior to the lender doing a survey.
  5. Refurbishment – It’s up to you if this is necessary, get quotes for works prior to exchanging on a property and work out if it is affordable for you.
  6. All the over variables should be roughly the same cost

In using the list of costs above and adjusting them to fit your property purchase you will be able to see how much buying your property will cost and this will give you a budget to work to and an idea of how much cash you need in the bank.

If you need any help with buying or an investing in property please do not hesitate to get in contact with us at NC Real Estate or keep checking in with our blog updates and information on Facebook.

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