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Bridging loan
If you want to progress with a house purchase but you haven't sold your property, you may want to consider taking out a bridging loan in addition to your existing mortgage. This is an expensive option incurring a setting up fee of 0.5 to 1.5% and a higher interest rate of around 2-2.5% above the base rate. There are two types of bridging loan: 'closed' that's designed for if you've exchanged on the house you're buying and you need finance for a specified period until your sale has exchanged; and 'open' which is based on an unspecified time limit where you've not sold your property.
Survey
Once your offer is accepted you will have to arrange for a survey of the property to be done. This will need to be done by a qualified surveyor.
If the property is post 1930s you can get a general Homebuyers Survey done which covers aspects such as structure and build quality; roof, chimney, tiles and flashing. This will cost about £500. If you want a complete appraisal done, especially if it's an older property, you will have to pay more for a Buildings Survey.
Conveyancing
Once your offer has been accepted you will need to arrange a solicitor or licensed conveyancer to manage the legal process of transferring a property from one owner to another. You can arrange a fixed fee that usually includes the associated costs of searches, Land Registry fees and Stamp Duty Land Tax paperwork. Fees do vary, so get a number of estimates from several professionals.
Did you know...
Tesco Property Market has linked up with MyHomeMove, one of the largest independent conveyancing providers in England and Wales to provide a comprehensive legal service to owners of homes in England and Wales. You can get an immediate online conveyancing quote for buying or selling and this will remain valid and not increase* for 30 days.
You can manage the conveyancing yourself by getting relevant documents from legal stationers and the Land Registry. You'll need to get a solicitor to check your paperwork and this will cost around £100.
Stamp Duty Land Tax
This is the tax you pay when you buy a property over £125,001. See the Ready Reckoner for a break down of charges.
Removals
Think about the cost of removals. Hiring a van is a cheaper option if you're only moving a short distance from a flat or small house and can cost as little as £125 a day. However for anything larger or for long distance moves, you'll likely need a professional removals firm that can cost up to £1,500 plus additional packing costs.