Legal Q&A: what expenses do London first-time buyers need to pay now they are exempt from stamp duty?

My boyfriend's mother says we will have to pay lots of other expenses when buying a house, even though we will not have to pay stamp duty after the Budget. What else do first-time buyers need to pay for?
Fiona McNulty1 December 2017

Question: We are first-time buyers looking at a house priced £285,000. We know we will not have to pay stamp duty now as a result of the Budget last week, but my boyfriend’s mother says we still have to take into account lots of other expenses.

A quote that we received from the solicitor who was recommended by the estate agent just gives his fee and refers to adding on disbursements. In addition to the solicitor’s fee and the price of the property, what kind of other expenses will we be facing?

Answer: There are various costs that you will have to meet in addition to those you mention above.

In most cases, if you require a mortgage to help fund your purchase, you will need to pay a mortgage arrangement and a valuation fee.

It is prudent to obtain a survey of the property you are buying unless it is a new build and has the benefit of a building warranty.

Accordingly you may have a surveyor’s fee to pay.

Check if the lender’s valuer can carry out a survey for you, which may be a less expensive option than employing a separate surveyor.

You should ask the solicitor who provided you with a fee quote to revise it so that it lists the anticipated disbursements you are likely to incur.

These are such expenses as Land Registry fees and search fees.

Remember that you will need buildings insurance as a condition of any mortgage you have, and it would be sensible to have contents insurance.

You will have removal costs and you will need to furnish your new home.

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