The UK has some of the hottest property markets in the world, which means that buying a home can often be a very competitive process. Before you embark upon your search, it’s worth understanding a few things if you want to secure your ideal property.

What are the Costs When Buying a New Home?

The main costs you’ll need to consider are:

Stamp Duty

Stamp Duty Land Tax (SDLT)

The current rates for stamp duty are tagged to the value of your property.

Property Purchase Price

SDLT

Up to £125,000 (the portion from £0 to £125,000)0%
£125,001 – £250,000 (the portion from £125,001 to £250,000)2%
£250,001 – £925,000 (the portion from £250,001 to £925,000)5%
£925,000 – £1,500,000 (the portion from £925,001 to £1.5 million)10%
The remaining amount (the portion above £1.5 million)12%

If you’re buying your first home

You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay:

  • no SDLT up to £300,000
  • 5% SDLT on the portion from £300,001 to £500,000

You’re eligible if you and anyone else you’re buying with are first-time buyers.

If you’re buying an additional property

You’ll usually have to pay 3% on top of SDLT rates seen above if buying a new residential property means you’ll own more than one.

Stamp Duty update September 2022

The stamp duty calculators give an indication of stamp duty liability for residential property purchases in England & Northern Ireland up to 23rd September 2022. Updated calculations and rates will be published soon to reflect the changes in stamp duty following the Mini Budget released on 23rd September 2022.

Other Costs

Other costs may include:

  • Solicitors: Depending on the value of your property and the complexity of your transaction, solicitor’s fees may vary. Contact your lawyer for a quotation.
  • Surveys: Prices vary between flats and houses, and whether a basic home-buyers survey or a structural survey is performed. Contact your surveyor for a quotation.
  • Removals: You may also need to factor in the cost of a removal team to help you move into your new property

Mortgage Advice – Our Guide to the Mortgage Process

Henry Wiltshire have teamed up with Capricorn Mortgages to bring you mortgage advice from the experts. Watch our guide taking you through the mortgage process:

Our Step-by-Step Guide to Buying a New Home

1. Confirm Funds

1. Confirm Funds

Once you have your mortgage approval in principle (or you are a cash buyer), you are ready to begin viewing properties.

2. Appoint your Solicitor

2. Appoint your Solicitor

You will need a solicitor to review contracts and advise on the sale. It is best to have your solicitor assigned before making any offers, as this will speed up the process once the property is sale agreed.

2. Viewings

2. Viewings

Book and view properties within your budget. Do as much research as you can before the viewing, this will help your decision and maybe offer some questions to ask the agent.

3. Offers

3. Offers

All offers should be made in writing to the agent, along with supporting documents including ID, proof of address and proof of funds. The agent will inform the vendor of your offer and will update you accordingly.

4. Sale Agreed

4. Sale Agreed

If your offer has been accepted by the vendor, the property will be marked as Sold (subject to contract). You should now instruct your solicitor to proceed, and make arrangements to complete your mortgage application (if applicable). One of our team can recommend a local solicitor if required.

5. Sales Particulars

5. Sales Particulars

Once the vendor and buyer have both instructed solicitors, we will draw up our “Memorandum of Sale” which will be sent to:

  • Purchasers
  • Purchaser’s solicitor
  • Vendors
  • Vendors’ solicitor

This contains the particulars of the sale, including buyer, seller, chosen solicitors, agreed purchase price and any special arrangements such as estimated dates.

6. Survey and Valuation

6. Survey and Valuation

You may want to have an independent building surveyor assess the property to ensure there are no issues to be aware of. Banks (if a mortgage buyer) will assign a valuer to assess the value of the home. You will also need to have home insurance in place before drawing down your mortgage.

7. Mortgage/Cash Purchase

7. Mortgage/Cash Purchase

For mortgage buyers, once all the conditions of the loan have been met, your lender will forward a formal ‘letter of offer’ outlining the terms and conditions of the loan. Cash purchasers will have to transfer funds to their solicitor.

8. Contracts Issued

8. Contracts Issued

The vendors’ solicitor will issue contracts and request local searches. Your solicitor will review and return with enquiries if needed. Once both parties are satisfied with the contract, each will sign and exchange. This is now a binding agreement and the deposit is now locked. You will have to transfer your deposit and authorise Exchange of Contracts before Completion.

9. Collect the Keys

9. Collect the Keys

Once all of the above is complete and contracts are signed, a time and date will have been set for you to collect the keys to your new home.

Start your journey to find your new home

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