Associated costs with buying and selling property in Jersey
There is a typical set of costs that will be incurred as part of the property buying/selling process, such as estate agent’s commission, mortgage penalties, stamp duty and legal costs. These vary according to the value of the property and factors such as the amount of administration required.
You will need to budget for the following buying costs:
- Stamp duty on your contract of purchase
- Mortgage arrangement or booking fees
- Your lawyer’s fee (to include the cost of property search reports)
- Your mortgage provider’s lawyer’s fee
- Stamp duty on your mortgage
- Your surveyor’s fee
- Cost of any specialist reports
- House, contents and life insurance premiums
- Removals costs
- Changing the locks
Getting a mortgage – how much can you borrow?
Until relatively recently the lending criteria for high street lenders was straightforward and could be explained as a percentage of your gross income based upon a set amount of deposit. Lenders now have a disparate set of rules to establish this figure so you are well advised to shop around amongst lenders and mortgage brokers in an effort to establish this figure.
Factors effecting this calculation will include the number of years until your retirement, the level of your basic salary (i.e. not counting bonuses) and the level of deposit which you have accrued.
You will hear the term “LTV” which is an acronym for “Loan to Value”. As is sounds, this the relative percentage between the amount of your new mortgage and the value of the house, for example if you are looking to borrow £900,000 to buy a property valued at £1m then your LTV will be 90%.
Mortgage providers and brokers
Mortgage Brokers in Jersey