Other fees you may need to consider

When buying a home, there's a number of costs you may need to consider and budget for. Some have to be paid up front. Here we've put together a short guide of the types of things to keep in mind and a rough cost*.

 
Title Description and guide price
Reservation fee This is the £250 you pay to reserve your property and this amount will be deducted at completion stage. The fee is £500 for resales of shared ownership properties. This reservation fee will be paid at the beginning, once you confirmed you wish to proceed with the purchase of the property.
Mortgage broker fee If you use a mortgage broker to help find a mortgage, most mortgage brokers will normally charge a fee for their professional services and advice. They will help source a mortgage on your behalf and progress this for you. This fee is payable to the mortgage broker directly and fees do vary, so please check with the mortgage broker/advisor you wish to use. Please click here for a list of suggested brokers to consider.
Mortgage valuation fee Once the mortgage broker has sourced a mortgage lender, the lender will arrange a valuation of the property you are going to buy. This is to check the security of the mortgage. The fees vary from lender to lender but typically start from £375. This is payable at the mortgage application stage.
Mortgage arrangement fee Some mortgages have an arrangement fee, typically this is with fixed rate mortgages and are normally known as ‘arrangement' or 'application' fees. Fees vary from lender to lender and usually start at £500.
Solicitor fees Solicitors will charge a fee for their professional services and this can start from £500, but please check with the solicitors you wish to use for purchasing your property. Fees can be fixed or variable so make sure you find out before commissioning your solicitor. This fee is usually taken at the instruction stage and any remainder payable on completion. Check the breakdown of charges with your solicitor. Please click here for a list of suggested solicitors to consider. 
Legal disbursements Your solicitor will have to carry out a number of transactions as a precaution to ensure all legal work is in order - these are known as disbursements. These all incur fees and include the Land Registry fees, local searches, bankruptcy and chancel searches, and a number of other searches. Disbursements usually start around £200 and are generally payable on completion.
Stamp duty Stamp duty is a government tax on buying a home, collected via HMRC. You don’t have to pay stamp duty on homes sold for less than £125,000 (full market value). For homes £125,001 and above, stamp duty is payable at varying levels.

You have the option of paying stamp duty on either the share you are buying or the full value of the property. Please speak to your solicitor for exact amounts and the options you have available. The stamp duty is payable to your solicitor on completion.

Removal costs When looking at removal companies or van hire firms, it's worth getting two to three quotes as these can vary and you can find out about what each company offers. Some removal companies ask for a holding deposit. You should also bear in mind any parking charges in the area.
Deposit You will need to pay a depost of £1,000 at exchange of contracts stage. Like the reservation fee this will be deducted from the share you buy at completion. This should be paid to your solicitor.
Telephone connection charges In our homes there will be a telephone point and you will have to pay for a connection charge for the point to be connected to the telephone company. The cost estimated is around £150.
Other costs There may also be other costs to consider, for example new furniture and items for your home. Please click on the following link to have a look at our  Guide to monthly living costs [pdf] 325KB.

Important note

* costs are estimates and guides only. Please carry out your own research on service providers and fees.