When you set a budget to buy a home, it’s easy to overlook certain costs. These costs aren’t exactly “hidden” but they are not usually included in the asking price. Savvy home buyers consider these additional costs and plan accordingly.

But what exactly are the hidden costs to watch out for when you’re buying property? In this blog, we look at the top five to help you make the right financial decision.

1.        Leases

Before you commit to your dream property, always check whether it’s freehold or leasehold. Freehold means that when you buy it, it’s yours for as long as you and your family want it. But if the property is leasehold, you will have to pay to renew the lease on the property when it runs out. The property description will show you how long the lease has left. It’s worth remembering that most mortgage lenders won’t even lend to you if the lease has less than seventy years left. 

Find out more about leasehold and freehold properties here.

2.        Ground rent and service charges

If the property you’re considering is in a block of flats or on a private road, take a moment to look at whether this means extra costs for homeowners. 

Blocks of flats and apartments often ask residents to pay a service charge to cover cleaning and maintenance of communal areas and the building as a whole. A flat will often be part of a freehold property (see above) and residents will have to pay annual ground rent to the freeholder. 

In a similar way, some private roads are run by a committee or residents association who pay to have the road maintained. Find out what this will cost you before you commit to your new home. 

3.        Maintenance

If you’ve seen a property that looks surprisingly affordable, it might be because it needs a lot of repairs and maintenance. 

Big, characterful, historic properties look great fun to live in but the running costs can be exorbitant. And when something breaks, you may well have to replace it with historically accurate materials – this is rarely the cheapest option. 

Some twentieth-century properties are also sold at a knock-down price because they need so much work doing to them. They may lack basics like central heating, and they might need to be brought up to a basic safety standard in term of gas and electricity. 

Read the property description carefully. If it’s described as “needing restoration” or being a “project,” it means that what you save in upfront costs could be offset by what you pay to do it up. 

There are lots of pros and cons to buying a fixer-upper – find out more here.

4.        Energy bills

Another cost to look out for is energy. All homes now come with an energy rating and, by law, UK estate agents have to share the energy performance certificate (EPC) as part of the property description. 

EPCs rate properties from A to G, with A being the most efficient and G being the least efficient. In general, the closer the property is to A, the lower your energy bills will be. 

EPCs also show how efficient the property could be, if it had, say, improved insulation and a source of renewable energy like solar panels. Insulation and solar panels make a difference but have an upfront cost.

Before you commit to your dream home, remember to calculate your future energy bills or the cost of reducing them. 

5.        Travel

Every house move brings us closer to some amenities and further away from others. With more of us working from home, it’s easy to think that travel costs have disappeared. But in reality, most of us have to turn up at the office once in a while. The children need to go to school, and we all need to buy food and other essentials. 

If you move to a new area, think about how your travel costs will change. If you’re moving closer to somewhere you need to be on a daily basis, you will see your travel costs go down – well done! But if you’re moving away, it’s important to calculate the costs of your regular journeys, whether you’re driving or using public transport. 

Buy property in Guildford with Cobbles

There are often extra costs involved with buying a home. Fortunately, when we know what to expect, we can plan ahead and avoid nasty surprises. The friendly team at Cobbles work hard to make all the information clear so buyers can make an informed choice. Explore our property pages to find your next home, or call us on 01483 457 000 to find out more.