Q. I am a single person, and have been saving for the last while to get the deposit together on an apartment in the city. I am in long term employment, and while I have approval in principal, the bank is saying that I need to have a sum over and above the deposit to cover fees and outlays. What other costs might be expected?
Dear Reader,
Your bank will generally expect and require you to have a sum over and above the deposit to cover outlays and solicitors fees, and they will generally give you an idea of the sum that they require.
Your mortgage can go towards the purchase price only, and the bank would expect you to fund the other expenses involved in purchasing a home.
The first figure that you should be aware of is, of course, solicitors fees and expenses. These will generally vary from case to case, depending on the nature of the property that you are buying, whether it is held by the Registry of Deeds or the Land Registry, whether it is a house or apartment etc.
VAT will be chargeable at 23 per cent on the solicitors fees. Your solicitor will give you an estimate as to their own fees at the earliest possible juncture, but of course issues can crop up which might change that estimate.
The next larger expense would be Stamp Duty. This is generally one per cent of the value of the property.
Registration fees depend on the nature of the property you are buying. The fee for the registration would be around €600 – €800. As you are buying with mortgage, the registration fee for the same would be €175.
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 €100.00 – €200.00. Commission for oaths fees would be in the region of €50.
As you are buying an apartment, you will have be able to pay for “your” share of the management fees and LPT for the relevant year.
All of the above expenses are paid to your solicitor, who should be able to give you a more precise breakdown of the same.
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. You will generally pay those fees directly to those parties.
Lastly, the bank may also require you to have a small sum over and above to cover moving costs, furniture, etc.
You should stay in contact with your solicitor, bank, or mortgage broker.
