Costs associated with the property
Properties are money pits. Before you even start throwing money into decorating and furnishings, and prior to getting the keys, there are some extra costs to budget for:
You'll need to feel confident that the property you are buying hasn't got any nasty surprises lurking in the brickwork, foundations or woodwork. The compulsory mortgage valuation report won't go into details. It will simply tell the lender that if you default on payments, they will be able to get their money back. So, for peace of mind, it's advisable to appoint a professionally qualified surveyor to conduct a more detailed survey. There are two types to choose from - a Homebuyers Report or a Full Structural Survey.
Costing from about £250, depending on the size of your property, a homebuyers report will give you a good indication of the state of the property and its level of repair and maintenance. It will encompass all visible parts of the property, such as the condition of the roof. The report will also advise whether the surveyor recommends any further specialist surveys. If you uncover major faults, the survey will enable you to negotiate with the seller for a reduction in price or for them to carry out the repairs before you move in.
Full structural survey
Costing between £300 and £1,000, depending on the size of the property, the Full Structural Survey is the most comprehensive – and the most expensive. The surveyor will check the property thoroughly, looking at everything that is visible or easily accessible to examine the soundness of structure, its general condition and all major or minor faults.
If you would like this sort of detailed inspection, the surveyor carrying out the mortgage valuation for the lender can usually conduct a homebuyers report or full structural survey at the same time. Combining the two could save you money.
Your property may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: pay a fee, usually £200, or we can accept commission from the lender.
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Riach Financial Advisers provides financial advice and planning, in plain English, to people who want to ensure they make the right financial decisions at the right times and at the right cost. It's simple!
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