First-time buyers forking out up to £6k on fees and charges when buying a home

First-time buyers forking out £6,000 on fees and charges when buying a home Mortgage fees cost around £942, while solicitor fees can cost £1,500Many of the fees and charges have to be paid upfrontIn June, average deposit paid across UK was over £72,000 

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First-time buyers could fork out £6,000 on fees and taxes when purchasing a property, new research reveals.

The steep bills come on top of the requirement to find a deposit, which with average house prices high already spells a hefty sum. 

Typical fees for solicitors range from around £500 to £1,500, while mortgage fees cost approximately £942, MoneySavingExpert's findings for the Press Association suggested. 

The biggest bill typically comes from stamp duty - the survey put the average cost of this at £560 but the bill would rise to £1,500 for a £200,000 home and climb higher for more expensive properties.

Costly business: Sums paid vary depending on location and the type of property involved, but many of the fees have to be paid up front

Costly business: Sums paid vary depending on location and the type of property involved, but many of the fees have to be paid up front

Sums paid vary depending on location and the type of property involved, but many of the fees have to be paid up front.

Although saving up for a deposit is many people's main objective, that means it pays buyers to set aside sufficient funds for the myriad of additional fees and taxes involved when buying a home. 

On top of the more well-known charges including stamp duty and solicitor costs, prospective buyers should also budget for home removal fees and final electricity or gas bills at their current property that need to be paid before moving. 

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According to Citizens Advice, if the sale of a property falls through and a buyer has already paid for a valuation or a survey or if a solicitor has already started any legal work, such costs are likely to still have to be paid by the buyer.

TYPICAL FEES FOR BUYERS

Stamp duty - £560

Mortgage fee - £942

Valuation fee - £150-£1,500

Solicitor fee - £500-£1,500

Search fee - £250-£300

CHAPS fee - £25-£50

Surveyor fee - £250-£600 (optional but often necessary)

Broker fee - £0-£500 (optional) 

Stamp Duty Land Tax is the tax paid on the purchase of a property and can trigger the biggest individual bill.

Stamp duty is charged on the purchase price of a property and kicks in above £125,000.

Until December 2014, it was charged slab-style and percentages above thresholds were imposed on the full purchase price.

Reforms in the Autumn Statement by Chancellor George Osborne mean that it is now levied progressively, like income tax, with percentages stepping up above thresholds.

These thresholds are:

0 per cent up to £125,000

2 per cent to £250,000

5 per cent to £925,000

10 per cent to £1.5million

12 per cent above £1.5million

Previously they stood at 1 per cent above £125,000; 3 per cent above £250,000, 4 per cent above £500,000; 5 per cent above £1million and 7 per cent above £2million. 

A stamp duty return form has to be sent to HM Revenue & Customs and the tax has to be paid within 30 days of the completion of the property purchase. Typically funds are transferred for it to solicitors at the point of buying a home, or before then.

In June, the Mortgage Advice Bureau claimed that the average deposit paid by buyers in the UK is £72,302. 

Stamp Duty Calculator House purchase Price of house: (eg. 70000) £ Calculate Result Stamp duty on house: £ Additional costs: Typical fees for solicitors range from around £500 to £1,500, while mortgage fees cost approximately £942

Additional costs: Typical fees for solicitors range from around £500 to £1,500, while mortgage fees cost approximately £942

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