What will I need to pay for?
Reservation deposit
A £500 reservation deposit is required on the day that you reserve. The property will not be taken off the market until your deposit has been paid. This is held by our solicitors until the day of completion, when it is deducted from the price of the share that you are buying. If you decide to withdraw from the purchase once your application has been approved the deposit will be kept to cover administration costs.
Solicitors
You will need to pay your solicitors to act on your behalf. Their costs will include the fees to the Land Registry, local searches and stamp duty (please check with your solicitor if stamp duty will apply on your purchase and how much this will be). You will need to ask your solicitor for a full breakdown of costs including their fees.
Survey and valuation
Your mortgage lender will want to ensure that the property you are buying is in reasonable condition and worth the purchase price. You will therefore need to pay your mortgage lender a valuation fee for conducting the survey on the property. Your IFA/lender will confirm the exact amount to you.
Mortgage fees
Most banks and building societies charge a mortgage arrangement fee, which will be confirmed to you by your IFA/lender.
Insurance
We will be responsible for the buildings insurance but you will need to insure the contents of your property.
Deposit
When you exchange contracts on your new home, we will ask you to pay a 10% deposit, based on the share price you are purchasing (which will not include your reservation deposit). This will be added to the reservation deposit you have already paid. When you complete your purchase we will deduct the money you have already paid towards the following:
- Rent and service charge due for the time between completion and the end of the month
- One full month’s rent and service charge in advance
Any money that is left over will be deducted from the purchase price.
