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It is safe to say that buying a new home is probably one of the most expensive endeavours you will ever undertake. What many people do not realise is that there are additional expenses to what they initially thought, oftentimes adding 10% or more to the bill. Needless to say, failure to budget for this amount will result in a lot of stress and problems. 

If you are about to buy your first home, you have to be aware of all the hidden costs of such purchase, in addition to the additional costs of owning the place. In this guide, we will list some of those, so that you can properly plan for them and act in accordance. Let’s begin: 

• Stamp duty - stamp duty can potentially add 7% to the cost of a new home. In essence, this is a government tax, applicable to properties with a value over £125,001. If you are a first-time buyer, you are exempt on the first £300,000 for any property worth up to £500,000, so that is one thing to bear in mind. 
  
  
• Conveyancing - there are various aspects to this legal process involved in buying a new property, in addition to legal searches your conveyancing solicitor makes, as well as registering the change of ownership with the Land Registry. Conveyancing fees vary depending on the value of the home, the number of local searches you have done and whether the property is leasehold or freehold. Usually, the cost ranges between £500 and £1500, plus an additional £250 - £450 for local searches and more. 
  
  
• Valuation fee - if you are working with a mortgage lender, they will likely demand a valuation survey. The purpose of the survey is so that they know the property is at least worth what they are lending you. Some lenders will charge a mortgage valuation fee of up to £200. 
  
  
• Estate agent fee - typically, it is the seller who pays the real estate agent fee. However, there are some dodgy sales by tender tactics that you need to be careful with, as they aim to make the buyer pay the fee. 
  
  
• Mortgage broker and mortgage arrangement fees - you will often use a mortgage broker to find a good deal. Remember, this may cost you a few hundred pounds, up to 1% of the mortgage. The mortgage arrangement fees range, but they too can reach up to 1% of the mortgage. Arrange this with your lender, as some request that you pay all of the fees upfront. 
  
  
• Removal - in some cases, you will be able to arrange removal for free on your own or with friends. However, if you have a lot of your belongings to move, chances are you will need a company for the job. The price for such service depends on the scale of the move, so it is a good idea to get a few quotes to factor in the price. 
  
  
• The costs of owning a property - as you move in a property, you will have to consider much more than just a mortgage. There are bills, in the form of gas, electricity and water to consider. Council tax is also a major component of yearly expenses, with the range depending on how big the property is. If the place is serviced, service charges apply. Parking is also a consideration, as in many areas you have to pay an annual fee for parking. 
  
  

These are all important considerations to make when it comes to buying and owning a property. All of the extra expenses can hit you hard if you don’t account for them. 

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