Q. My partner and I wish to buy a property and have been diligently saving for the last two years. We have now finally saved a 10 per cent deposit and went for mortgage approval for the other 90 per cent to purchase the property. While the bank have agreed a loan in principle, they are saying that we need to have monies over and above the 10 per cent deposit to cover various fees and outlays. We knew we would have to have the solicitors fees covered, but can you give us a guide as to what other expenses we might expect on a house purchase?
Dear Reader,
Your bank will generally require you to have a sum over and above the deposit to cover outlays and solicitors fees. Your mortgage can go towards the purchase price only, and the bank would expect you to fund the other expenses.
The first figure that you should be aware of is solicitors fees and expenses. These will generally vary, depending on the nature of the property, whether it is held by the Registry of Deeds or the Land Registry, whether it is a house or apartment, etc.
Your solicitor will give you an estimate as to their own fees, but of course issues can crop up which might change that estimate. And VAT will be chargeable.
The next larger expense would be stamp duty, generally 1 per cent of the value of the property.
Registration fees depend on the nature of the property. If you are buying a home with a mortgage, you would expect same to be in the region of €700 to €900 – but again the precise figure will depend on the nature of the property you are buying.
You will also have to pay for search fees (to ensure that there are no hidden judgements or bankruptcies) which are usually in the region of €100 to €200. Commission for Oaths Fees would be in the region of €50.
If you are buying an apartment, you will have to pay your share of the management fees, as well as LPT.
All of the above expenses are paid to your solicitor, who should be able to give you a more precise breakdown.
Aside from that, you will need to have a surveyor inspect the property to ensure that the boundaries are in order, and that the property is structurally sound. Separately to the surveyor, your bank will likely require an independent valuation of the property, completely separate from your structural survey.
The bank is only valuing the property for reinstatement value and will generally require you to pay their valuers fees. It is vital that you obtain your own surveyor report.
You should stay in contact with your solicitor, bank, or mortgage broker.
