The Hidden Costs Of Owning Your Own Property
You researched everything you need to pay in order to buy or sell your new home and budgeted accordingly. Now you’ve completed what else will you need to pay? We have written an extensive guide on potential expenditure you could face after completion.
1. Service Charges
Once you have your new house, there are likely to be further fees to pay. If you buy a leasehold property you’ll almost certainly pay a service charge. This is for the upkeep of the property, shared areas, plus ground rent.
If you purchase an apartment and you own the freehold or are a joint freeholder, factor in maintenance costs. You will need to clean/decorate communal areas etc.
2. Ground Rent
If your property is leasehold you will have to pay ground rent to the freeholder (landlord). You will be able to find out how much this is from your conveyancer or solicitor as you go through the legal process.
All property needs to be kept in a good state of repair, even if you buy a new build you will have some costs. For example,
New Build – you may want to employ the services of a gardener, window cleaner, someone to clear out your gutters. These are not expensive jobs but important to keep on top of.
Older Property – Your survey will have picked out any immediate concerns but an older home will mean the possibility of repairs sooner. Roof tiles may become dislodged, plumbing could need attention e.g. toilet flushes.Integrated appliances and the boiler might be older and reaching the end of their lifespan.
If you have children it’s likely sticky fingers will mean painting and decorating needs to be undertaken more regularly.
4. Furniture And Extras
If you are moving into your first home you’ll need to buy everything, from beds and sofas to wardrobes and white goods. These things often cost more than you think. If the seller includes such items, make sure your solicitor has them noted down in the contract. If it’s not noted down, they might not be there.
Then there are boring but essential extras: light bulbs, cleaning materials, soft furnishings, lamp shades, toilet brush, etc.
You might need blinds and curtains and if you buy a new build you will even need to factor in flooring costs, although some builders will give you an allowance to include them.
5. Mortgage Repayments
Your mortgage payments are an ongoing cost. The first payment is also likely to be higher than normal. This is because you pay interest in the month you get the mortgage, as well as for the upcoming month.
Don’t over-stretch yourself or you risk losing your house.
6. Insurance Policies
Common insurance policies set up when buying a home are,
- Buildings and Contents Insurance
- Life Insurance
- Critical Illness
You will need to pay the following bills annually or monthly,
- TV Licence
- Council Tax
- TV Provider
8. Parking Charges
Depending on the type and location of your new home you may have to pay residents parking charges. This might be an annual fee. Also check facilities and costs for visitor parking.
Moving home is a costly expenditure but with our help you should have been able to make savings along the way. If you are at the beginning of the process we have lots of handy guides aimed at saving you time and money. Just look at our Help & Resources section which is full of useful help and advice.