Purchasing costs.

Mortgage Lenders Fees

MAXIMUM ADVANCE PREMIUM
Mortgage lenders charge a MAXIMUM ADVANCE PREMIUM (MAP) fee on the mortgages they arrange. Where the loan is high in relation to the property value, (Loan Value).It does not give you any protection - it reflects the increased risk to the lender.
How much you pay as a MAP fee depends largely on the size of your mortgage. It also depends on how much of the property's value you want to borrow.
When do I pay it?
The MAP fee is paid when you complete your mortgage and is automatically taken by your mortgage provider. You can however pay the MAP fee over the term of your mortgage. If you add the MAP fee to the mortgage, you will pay the interest on the sum involved over the mortgage term at the mortgage rate. The MAP fee does not give you any protection. You still have to pay any amount you owe (including unpaid mortgage payments, interest and legal fees), even if your mortgage lender repossess your property and sells it for less than the amount you owe.

VALUATION FEE
You may also need to pay a VALUATION FEE so a surveyor can visit the property you want to buy and "value" it; check its worth what your mortgage lender has agreed to lend. This fee is based on the purchase price, or the estimated value of the property you are planning to buy.
When do I pay it?
The valuation fee is paid before the valuation is carried out. You can add the valuation fee to your mortgage however you will pay the interest on the sum involved over the mortgage term at the mortgage rate.

MORTGAGE ARRANGEMENT FEE
You may also need to pay your mortgage lender a mortgage arrangement fee to cover the various administrative and legal costs that are involved in arranging your loan.
When Do I pay It
You pay on completion of the legal purchase.

RESERVATION FEE
For capped-rate and fixed-rate mortgages there may be a reservation fee to pay as well. This holds the (reserves) the capped rate or fixed rate that you have applied for. Please not that that it is important to remember this reservation fee does not guarantee that any lender will lend you money. They are just reserving a capped or fixed rate for you and this fee covers their cost for doing this.
When Do I Pay It
You pay on completion of the legal purchase.

REMITTANCE FEE
You may also pay a remittance fee to cover you lenders costs when they send the money your borrowing to your solicitors.
When Do I pay It
You pay on completion of the legal purchase.

Estate Agents and Surveyors

SURVEY
You will need to pay for any survey you want carried out on the property you are considering buying. This could be a standard survey or a home buyer's survey. You may also want to have special surveys such as a drainage check or a home energy report carried out.
When Do I Pay it
You will pay the fees prior to the surveyor carrying out any work.

LEGAL FEES

When purchasing a property you will need to pay your solicitor for all legal work involved in transferring ownership of the property to you. This fee will often be a percentage of the cost of the property that you are buying. Expect to pay between 0.5% and 1.5% of the purchase price.
When do I pay it?
When you receive your solicitors final bill.

OFFICIAL ENQUIRIES
You will also need to pay your solicitor for the cost of certain official enquiries, including search fees - to check for example, that there are no rights of way across the property, and no plans for building or developing land close by. There is a separate fee for each type of search.
When Do I pay It
When you receive your solicitors final Bill.

LAND REGISTRY FEE
You will need to pay a land registry fee to register you as the new owner of the property.
When Do I pay It
When you receive your solicitors final bill.

Stamp Duty Land Tax when you buy property

New thresholds introduced from 3 September 2008 mean that if you buy property and the purchase price is £175,000 or less you don't pay any Stamp Duty Land Tax at all. If it's more than £175,000, you pay between one and four per cent of the whole purchase price. The £175,000 threshold (up from £125,000) will remain in place up to and including 2 September 2009.

Please note, this is a handy guide and does not constitute legal advice.

• 0% on houses between £0 - £250,00 (for first-time buyers)
• 0% on houses costing up to £125,000 (non first-time buyers)
• 1% on houses costing £125,000 - £250,000
• 3% on houses costing £250,000 - £500,000
• 4% on houses costing £500,000 - £1 million
• 5% on houses costing £1 million or more

Property in disadvantaged areas

Properties bought in areas designated by the government as 'disadvantaged' have historically qualified for Disadvantaged Area Relief (whereby the SDLT threshold was higher than for other residential properties). This relief will not apply for property purchases between 3 September 2008 and 2 September 2009 inclusive.
Instead the Stamp Duty Land Tax threshold will be the same as for all other property as shown above. The new threshold is higher than the previous Disadvantage Area Relief threshold of £150,000.