The True Costs of Buying a Home
So, you’ve found your dream home and you’re ready to take the leap into homeownership. The excitement is palpable, but amidst the thrill, it’s crucial to remember that there’s more to buying a home than just the sale price. Many first-time buyers are taken surprised by the ‘hidden costs’ associated with buying a home. We’re shedding light on these often-overlooked expenses. From solicitors’ fees to valuation costs, let’s explore the true costs of buying a home and how Shared Ownership can help you get on the ladder.
1. Legal Fees – Navigating the Legal Landscape
The Cost: Legal fees typically range from £850 to £1,500, including 20% VAT. This may increase based on the amount of work involved.
What You Need to Know: A solicitor or licensed conveyancer is a vital partner during the homebuying process. They handle the legal aspects of the transaction, ensuring a smooth transfer of ownership.
2. Valuation Fee – Determining Property Value
The Cost: Valuation fees range from £150 and increase depending on the worth of the property.
What You Need to Know: The valuation fee is assessed by your mortgage lender to determine the property’s worth. It’s a necessary step to secure your mortgage, ensuring that the property’s value aligns with the loan amount.
3. Electronic Transfer Fee – The Behind-the-Scenes Transaction
The Cost: Approximately £40 to £50.
What You Need to Know: The electronic transfer fee covers the movement of mortgage funds from your lender to your solicitor. While relatively minor in comparison to other costs, it’s a fee that is often overlooked.
Shared Ownership: Your Path to Home Ownership
At St Arthur, we understand that buying a home can seem like an impossible task with the backdrop of rising interest rates and the cost-of-living squeezing finances. But that’s where Shared Ownership comes in!
What is Shared Ownership: Shared Ownership allows you to purchase a share (usually between 25% and 75%) of a property while paying rent on the remaining share. This significantly reduces the upfront costs, making homeownership more accessible and affordable.
Benefits of Shared Ownership:
- Affordability: By only needing to finance a portion of the property’s value, you’re not burdened with the full price upfront.
- Gradual Equity Building: Over time, you have the opportunity to purchase more shares in the property, gradually building your ownership stake.
- Flexible Options: Shared Ownership gives you the flexibility to own more shares in your home, as and when you can afford it. If you don’t want to build your shares and are using Shared Ownership as a steppingstone, that’s fine too! Shared Ownership is completely flexible.
At St Arthur Homes, we’re committed to guiding you every step of the way. Visit https://www.starthurhomes.com/what-is-shared-ownership/ to learn more about Shared Ownership and how it can lead you to the home of your dreams. Be sure to stay connected with us on Instagram @wearestarthur. There, you’ll discover our latest developments, meet our newest homeowners, and uncover valuable tips and tricks for your own buying journey.