Breakdown of Home Buying Fees in London

Breakdown of Home Buying Fees in London
    

It's no secret that buying a home in London is going to be an expensive venture. Furthermore, there are a plethora of fees in which people are not even aware of when looking to buy a home in London. 

This can make the whole process much more complicated, and by knowing exactly how much you will have to pay when buying a home, you can make the whole experience much easier and avoid getting surprised by any unforeseen costs. 

In this article, we will be going through all of the factors you need to be aware of when looking to purchase a home in London, as well as stating all of the somewhat hidden fees in which almost nobody seems to know about. 

Getting a Reasonable Deposit is a Thing of The Past 

In previous generations, getting a reasonable deposit and being able to pay it rather easily was a common occurrence. Unfortunately, this is just not the way things work anymore.  

Throughout the majority of locations in London, you are going to be looking at paying a 10-15% deposit in most cases, and that goes without mentioning the fact that the prices of homes in London are now at an all-time high, making deposits even more of an issue.  

This means that for the vast majority of people, saving up for a deposit is going to take a while, and it may even be the hardest part about purchasing a home overall. 

Of course, the mortgage and deposit take up the largest percentage of the cost when buying a home, and that is to be expected.  

Although, it’s essential to know what you are getting in too before even considering buying a home in London, and you better be ready to pay some astronomical prices for a deposit.  

Don’t Forget How Expensive Day-to-Day Living in London Is 

It's no secret that everyday living in London is mind-bogglingly expensive. However, this seems to be a fact that the majority of people forget when buying a home in London, much to their detriment. 

On top of all of the usual bills such as electricity, gas, water, and all of the other essentials, there are also a plethora of other costs you need to factor in such as the cost of leisurely activities or food, both of which tend to be more expensive in London compared to most other places.  

Sure, it's debatable whether or not you could class these costs as home buying fees, but we would argue that both of these components go together, and you cannot purchase a home without also acknowledging that you will be spending the majority of your money in the local area. 

It is essential to realise just how pricey living in London can be, and it is critical that you factor this in when looking for your perfect home in London. 

Stamp Duty, Valuation Fees, Real Estate Costs & a Plethora of Unforeseen Costs 

Perhaps the fees that take people by surprise the most are the ones most people are not even aware of. There is a multitude of additional fees that one has to pay when purchasing a home such as stamp duty, real estate agent costs, valuation fees, as well as so many others. 

All of these things can add up to quite a large sum, and it is essential that you keep track of any and all expenses in the hopes of being able to stay on track of things. 

It can be easy to forget about these costs, and for those that do forget, all of these extra expenses can quickly become an issue.  

Conclusion 

Getting hit with an unforeseen fee is never great news for anybody. However, if you take heed to the advice that has been given throughout this article, you will never have to deal with said situation.  

If you are looking to buy a home in London and want access to all the newest properties on the market straight away, feel free to take a look at our website. TRPE- The Real Property Experts, have properties up for grabs all over London, and our expert team members can help you every step of the way. 

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Fees

Refundable Holding deposit

Capped at 1 weeks rent

Security Deposit

Capped at 5 weeks rent for annual rental under £50,000, or 6 weeks rent for annual rental over £50,000

Rent

The agreed monthly rent

Changes to tenancy

Capped at £50 inc VAT

Early termination charge

Not exceeding the landlord’s financial losses

Late payment of rent

Interest of 3% above BoE base rate for each day the rent is late, once it is 14 days overdue

Replacement keys

Reasonable costs or give the tenant the option to purchase themselves

Utilities, council tax, communication services, TV Licence etc

Tenants own responsibility unless otherwise stated in contract

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