The costs of buying
Buying your home is a major financial commitment. Apart from paying for the building itself, you will then have to maintain it. If you buy a flat on a long lease, you will also have to pay service charges.
You will be responsible for repaying your mortgage along with all the interest charges that are added to the loan, by making regular monthly payments to the mortgage company that lent you the money.
If you can't keep up the repayments on your mortgage, the mortgage company may go to court and ask to take over your home. The council may not have to give you another tenancy if you lose your home in this way.The amount you would have to borrow depends on: the full market value of your home; less
- Any discount you may be entitled to; less
- Any cash you can put towards the purchase.
One Off Costs of Buying Your Home
You should employ a solicitor or a licensed conveyancer to look after the legal side of buying your home and you should also arrange for a survey of your home.
If you take out a mortgage loan, you may have to pay for the cost of arranging it. You may also have to pay a valuation fee.
When a sale is completed, you must pay the Land Registry to register you as the new owner. You may also have to pay Stamp Duty Land Tax, which is a tax that people pay when they become homeowners. Stamp Duty is worked out as a percentage of the price you pay for any property that is worth more than £125,000. You can find out more about how much Stamp Duty might cost you on the Government's www.gov.uk/stamp-duty-land-tax-rates page.
- Council tax, water and sewerage charges: You will have to pay these separately, straight to the water services company and to the Council.
- Utilities: Gas, electricity, TV licence and other utility bills will be your responsibility.
- Insurance: For example, buildings insurance, contents insurance, life assurance and mortgage payment protection insurance.
- Repair and maintenance: If your home is a house and you buy it, you will be responsible for the costs of all repairs and maintenance, regardless of the condition of the property when you bought it. If you are buying a flat on a long lease, you will also have to pay the Council's service charges.