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When I bought my first property, a 2-bed apartment in London, I thought having a deposit + Help to Buy ISA bonus was enough.... I was WRONG. Here are the hidden ADDITIONAL costs for first time buyers that no1 tells you about. A thread:
1. Mortgage Broker Fee - circa £250
2. Mortgage Arrangement Fee - from £100 to a % of the mortgage
3. Stamp Duty - 0 up to £300k, 5% of amount above 300k to 500k... Average house price in London is £670k so you can expect to pay a hefty amount. 5k on 400k property.
2. Mortgage Arrangement Fee - from £100 to a % of the mortgage
3. Stamp Duty - 0 up to £300k, 5% of amount above 300k to 500k... Average house price in London is £670k so you can expect to pay a hefty amount. 5k on 400k property.
4. Ground Rent - £300 p/y paid upfront sometimes for 2 years!
5. Service Charge - You are expected to pay up to the end of the year upfront (financial or calendar, whichever comes first) Circa £600
6. Valuation Fee - £200
7. Bank Transfer Fee - £50
Total: £6500 EXTRA!!
5. Service Charge - You are expected to pay up to the end of the year upfront (financial or calendar, whichever comes first) Circa £600
6. Valuation Fee - £200
7. Bank Transfer Fee - £50
Total: £6500 EXTRA!!
I break down these costs and reasons why we have to pay them in my YouTube video 'SHOCKING Hidden Costs Of Buying a London Apartment!'
