During the last 17 years as a mortgage broker in Lincoln, I have helped many first-time buyers purchase their first home.
One of the most common questions I am asked is ‘what does it cost to buy my first home?’. Below are the typical costs that you have to consider when purchasing your first home at a price of £150,000, which is currently a typical purchase price for a property in Lincoln.
Valuation or survey
When you purchase your first home, there are three main types of valuation or survey. The only compulsory one is the lenders basic valuation. This will automatically be instructed by the lender when we submit a mortgage application for you, so you do not need to do anything except to pay the valuation fee. Some lenders are currently offering free basic lenders valuations, however if there is a charge it is normally no more than £300. This valuation is, as the name suggests, very basic and will not give you a lot of information regarding the property that you are buying.
If the property is more than 30 years old, then I would always recommend that we instruct a Home Buyers Report for you, which is normally 28 to 32 pages thick and gives a good overview of the property and potential issues that may warrant further enquiries before you complete the purchase. A typical cost for a quality Home Buyers Report at this property price range is £550, and as part of our service, I am always happy to discuss the contents of the report with you
If the property was built before 1900, or if the basic valuation or Home Buyers Report raise any major issues then you have the option of an engineer’s report or full structural survey. I very rarely recommend these to my clients buying their first home, as if there is a major structural issue with the property, I would normally recommend that you look for another home to purchase
Solicitor’s fees and disbursements
I will always recommend a quality solicitor for you and give a full break down of the costs involved. For a purchase at £150,000 of a property which is not a ‘new-build’ then the solicitors fee and the cost of all searches, inquiries and dealing with the land registry will typically be £1,000.
If the property is a ‘new-build’ then there are extra cost involved such as if part of your deposit is from a gift or if the property is a flat or shared ownership. I am always happy to discuss these extra costs with you.
Stamp Duty
Stamp Duty is a government-imposed tax on the purchase of property. Currently, there is an exemption for first time buyers on properties priced up to £300,000. If neither of you have been named on a property anywhere in the world previously then you do not pay stamp duty.
Deposit
There are a number of quality High Street lenders offering mortgages with a 5% deposit (£7,500 on £150,000) and all High Street lenders will accept a 10% deposit (£15,000 on £150,000). This can be from personal savings or gifts from family members.
If you need more information on your own personal circumstances, then please call us for a chat.