Savings to cover the costs of purchasing a property

Purchasing a property is expensive and feedback from our customers confirms that around an amount of around £3000 to cover the one-off costs is realistic. To proceed with your application therefore, you need to have access to at least £3000, either through savings or from family/friends, without the need to borrow additional amounts on your mortgage.

We recommend you proceed only if you have access to at least this amount to cover costs such as:

Legal fees/solicitor’s fees estimate £900

Valuation (Homebuyer’s report) estimate £500

Stamp Duty Land Tax (SDLT) 1% of purchase price approximately £1300

Gas and electricity test estimate £200

Administration fee £235 inc VAT

(to reserve a property) (refundable at completion)

There are also likely to be other expenses that you may need to budget for, eg: carpets, household goods like a fridge and washing machine, and possibly advance rent payments.

You should also be aware that a deposit of at least £1000 is payable at exchange of contracts stage. This is reconciled by your solicitor at completion stage.

Some properties in some areas of Kent are still priced at £120,000, or slightly less, and are therefore exempt from Stamp Duty Land Tax. You can apply for one of these properties with access to, or savings of £2,000.

Certain ward areas are exempt from stamp duty for house purchases between £60,000 - £150,000. Information on this is available from the Stamp Taxes Helpline on 0845 603 0135 or from www.inlandrevenue.gov.uk/so/. Purchasing in one of these designated areas could mean that you are exempt from this tax. If you do proceed to purchase in one of the areas that is declared stamp duty exempt we will require confirmation of access to at least £2000.

Please be aware that the market value of properties can go down as well as up.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.