Property registration, detailed valuation, insurance, notary or mortgage contract preparation. These services require payment of various fees, which are often overlooked by new residents who are focused on the down payment and the basic price.
Real estate experts estimate that additional costs can amount to at least 1,500–2,000 euros, and when calculating the housing advance tax, several times more. According to Martynas Žibūda, development director of the real estate company Eika, the variety and amounts of additional taxes are often unexpected for home buyers.
“A housing transaction involves not only the buyer and seller, but also often the bank financing the transaction, the institutions registering the ownership right, the appraiser, and the notary, whose services are also paid, therefore these costs, which average 1,500–2,000 euros, should also be included in your budget,” says M. Žibūda.
Notary fees
According to a real estate expert, when buying their first home, buyers typically finance 15 percent of the transaction value with their own funds, and borrow the remaining 85 percent from a bank. “Therefore, when signing a preliminary housing contract, buyers must pay a 15 percent advance payment, which, upon agreement with the seller, can be paid in installments until the notarized purchase and sale contract is signed,” explains an Eika representative.
In addition to the advance payment, buyers are also required to pay fees for concluding a notarial contract. For legal entities, they amount to 0.5 percent, and for individuals – 0.45 percent. of the property value. For example, if the value of the housing is 100 thousand euros, the resident will have to pay 450 euros for a notarized housing purchase and sale contract. The housing purchase and sale contract is signed at a notary’s office no later than one month after the date of transfer of the housing. Then, notary fees are also paid.
Fees before getting a mortgage loan
With a notarized purchase and sale agreement, the buyer can go to the bank, where a mortgage loan agreement is concluded with him. Its administration fee is determined according to the bank’s rates. Typically, it is from 0.2 to 0.4 percent. of the loan value, or about 170-340 euros in a specific case.
Before the bank grants a loan, the buyer must pay a property registration fee to the State Enterprise Registers Centre, which ranges from 25 to 200 euros, depending on the value of the property and the selected registration deadline (from 1 to 5 business days). In cases where the property is purchased on the secondary market, a detailed property valuation must be carried out at the request of the bank, which costs an additional approximately 60–150 euros.
The bank will also require that the property be insured with an insurance company recommended by the bank. This will cost an additional 30-100 euros annually. The buyer will also have to pay for the registration of the mortgage deed. This will be done by a notary, and the price for individuals will be 0.2 percent of the property value, but not less than 14.48 euros and not more than 144.81 euros.
About the EIKA group of companies
Founded in 1992, EIKA is one of the largest real estate development and construction groups in Lithuania, successfully developing residential, commercial, public and other building projects. The company has already built almost 4,500 apartments and 416 thousand square meters of buildings. EIKA has been awarded many times as the best real estate developer in Lithuania, the company’s projects “Santariškių namai”, Basanavičiaus 9A and “Eika namai Pilaitė” have become the best in Lithuania.
More information:
Jorūnė Juodžbalytė
Marketing and Communications Manager
Phone: +370 686 80126
Email. [email protected]