SarahBeenySpringIssue2017 - 58
YOUR GUIDE TO
HAVE YOU THOUGHT ABOUT INSURANCE? SURVEYS? LEGAL OBLIGATIONS?
PROPERTY EXPERTS ANSWER THE QUESTIONS YOU'RE DESPERATE TO ASK
What are the three most
common expenses buyers
forget to account for?
The most frequently forgotten
expense is stamp duty - either
that this tax needs to be paid at all,
or by using an incorrect calculation,
says property mentor Mandy St John
'You pay different rates of duty for
different proportions of the property
price. If the property is a second
home, you will be required to pay
upwards of 3%.'
The second thing lots of people
overlook is the arrangement fee
when obtaining a mortgage. 'Read the
paperwork very closely when applying
for the loan,' says Mandy. 'Some lenders
expect you to pay an arrangement
fee when you submit your mortgage
application, and they can be reluctant
to refund it if you decide not to
proceed with their mortgage offer.
'Other lenders will add the fee to
the loan, which means you will be
paying more interest in the long term.'
And thirdly, she says: 'Don't forget
to budget for property insurance
- especially contents insurance - to
protect against unforeseen disaster.'
DON'T BREAK THE BANK
- MAKE SURE YOU CAN
COVER ALL YOUR COSTS
058 | MAY 2017
any you can
get rid of
WORK MAY BE
YOU MOVE INTO
A NEW HOUSE
- BUT HOW MUCH?
I'm stretching my budget
to buy a property and can't
afford expensive repairs when I
move in. How can I check these
won't be necessary?
'There are two types of survey
that assess whether a property
is structurally sound,' says Angela
Gordon-Lennox, senior product
manager at Landmark Information
'The first type is a Homebuyers
Report by a chartered surveyor, who
visually assesses the property for any
defects or potential issues that may
require more detailed investigation.
'The second is a Building Survey,
which is a full physical investigation of
the property and the most thorough
report on the condition of it.
'The surveyor will really 'get under
the skin' of the home - for example, by
entering the loft, lifting drainage covers
and checking plumbing fitments.
'If defects are found, you will need
to decide whether to continue with the
purchase, negotiate a lower price with
the seller or factor in the cost of repairs.
'Going further, your solicitor
will recommend conveyancing search
reports that provide insight into
external factors, such as whether the
building is close to contaminated
land or a flood-risk area, or if the plot
suffers from subsidence or sinkholes.
'A Landmark RiskView residential
report gives information relating to
environmental risks in one document,
while a Plansearch report provides
neighbourhood details about schools,
amenities and planning applications.'