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| The Hidden Costs of Purchasing in Ireland |
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The ‘hidden’ costs of purchasing property in Ireland
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So far you know about your mortgage and what it is likely to cost, the percentage of the purchase price of the property required as a balance for full payment, the various types of mortgage and their monthly repayments.
Here is a list of other costs you shall need to budget for when buying your house.
Stamp Duty
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This is only on second-hand housing – no stamp duty exists on new housing.
This shall cost up to 9% of the purchase price of the house.
Check out our information on ‘Stamp Duty’, under "First Time Buyers" to determine the percentage rate of the purchase price of the property you shall have to pay.
If you are buying with a mortgage there will also be stamp duty on the mortgage deed.
Legal Fees
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Contact a solicitor here online to ascertain their current rates as rates vary.
Land Registry
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There is a fee payable to the Land Registry for registering the transfer of the deed into your name.
Application Fee
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Some lenders still charge a mortgage application fee. This can be as much as 300 euros.
Searches
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Life Insurance
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If purchasing with a mortgage your lender will insist that you have sufficient life insurance to repay the outstanding capital should you die before the loan is repaid. This need not be very expensive but it is best to shop around as cost can vary significantly from one insurer to another.
Buildings Insurance
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The lender shall insist that you have buildings insurance in place on the property before they will release the funds borrowed to your solicitor. Once again Irish Property Market.com advises you to shop around as policies and repayments vary from one company to the next.
Survey
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The lender shall want a valuation survey by a valuer either on their panel of approved valuers or one with equivalent qualifications. Check out our list of building surveyors for a quote on surveys. You pay for this valuation and the cost is likely to be in the region of 150 euros to 250 euros and varies.
Realise that this survey is solely for the purpose of assuring the lender that the property is adequate security for the loan provided.
It should not be relied on as an assurance that it is either worth what you are paying for the property or that it is free of any significant defects.
If in any doubt whatsoever you should commission a separate, more detailed survey to address these questions.
Indemnity Bond
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An indemnity bond is a form of insurance that covers the lenders in the event that they make a loss on the sale of a repossessed house. It can often be an expensive extra on top of your down payment. Most lenders will waive indemnity bonds. For the remainder it is left to the discretion of the lender.
VAT
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Don’t forget that VAT is added onto professional services such as those of a solicitor or valuer at the increased rate of 21% since the last budget.
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