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Question

How much will it cost me to buy a house?

Answer

Tailored fees for every transaction

Generally, the legal costs associated with buying a house will vary depending on the size of the property, it’s location and other factors such as whether it benefits from mains services or has been subject to an extensive range of works.

That is why at Tozers, we avoid a one-size-fits-all approach to pricing within our Residential Property Services. We realise that each client and transaction are different, and our specialist lawyers will take the time to understand your specific needs and requirements before providing a cost estimate for our services.

Upfront costs to consider

The major upfront costs you’ll need to factor in are;

  • Stamp duty - A government tax paid on homes costing £125,001 or more, but first-time-buyers will pay no Stamp Duty on the first £300,000 for properties worth up to £500,000. there is a 3% additional duty to pay on top of current rates if you’re buying an additional residential property above £40,000 such as a second home or buy-to-let property. In Wales you will need to pay Land Transaction Tax.
  • Valuation fee - Your mortgage lender will assess the value of the property, whether by carrying out a survey or a desktop valuation, to establish how much they are prepared to lend you and whether the Property is adequate security for such borrowing. The valuation fee will be set by the mortgage lender and indeed some lenders might not charge such a fee, depending on the type of mortgage product you select.
  • Surveyor’s fee - Before you buy any property, it is worthwhile getting it checked by a surveyor. This is vital in flagging whether there are any problems or potential defects before you buy. Surveys range from a basic home condition survey [or a HomeBuyers Report] costing around £250 to a full structural survey from £600 or more. Paying for a good survey could save you money on repairs in the long run and indeed we would be happy to put you in contact with local surveyors, who we work with on a regular basis.

We can then talk to you about legal fees as well as fees for searches and funds transfers. These fees will differ depending on whether you are buying, selling or remortgaging and also the whether the property is a freehold or leasehold. We supply some illustrative estimates below including payments made to third parties:

Illustrative costs based on property value of £300,000:

Freehold sale

Leasehold sale

Tozers’ legal fees

£850

£1,000

VAT @ 20% on the legal fees

£170

£200

Tozers’ bank transfer administration fee for repaying a mortgage on completion

£35

£35

VAT @ 20% on the administration fee

£7

£7

Payments to third parties

  • Land Registry documents cost – £6 – £12
  • VAT @ 20% on Land Registry documents cost – £1.20 – £2.40

Illustrative costs based on property value of £300,000:

Freehold Purchase

Leasehold Purchase

Tozers’ legal fees

£950

£1,250

VAT @ 20% on the legal fees

£190

£250

Tozers’ bank transfer administration fee for repaying a mortgage on completion

£35

£35

VAT @ 20% on the administration fee

£7

£7

Payments to third parties

  • Searches (typically, a local authority search, water and drainage search, and an environmental search) – £220
  • Land Registry registration fee – £135
  • Land Registry search fee – £3
  • VAT @ 20% on the Land Registry search fee – £0.60
  • Bankruptcy search fee – £2 per buyer (only applicable if a mortgage is being obtained to finance the purchase)
  • VAT @ 20% on the bankruptcy search fee – £.40 per buyer

Illustrative costs based on property value of £300,000:

Freehold remortgage

Leasehold remortgage

Tozers’ legal fees

£600

£750

VAT @ 20% on the legal fees

£120

£150

Tozers’ bank transfer administration fee for repaying a mortgage on completion

£35

£35

VAT @ 20% on the administration fee

£7

£7

Payments to third parties

  • Searches (typically, a local authority search and an environmental search) – £160
  • Land Registry registration fee – £40
  • Land Registry search fee – £3
  • VAT @ 20% on the Land Registry search fee – £0.60
  • Bankruptcy search fee – £2 per owner
  • VAT @ 20% on the bankruptcy search fee – £.40 per owner
  • Land Registry documents cost – £6
  • VAT @ 20% on Land Registry documents cost – £1.20