By Dennis Isong
Purchasing a home in Lagos is a dream come true for many, but beyond the excitement of having your own space, there are hidden costs that can catch you off guard if you’re not well-prepared. Whether you’re buying a property for personal use or as an investment, understanding these extra expenses will help you avoid financial stress. Let’s break it down in simple terms.
1. Legal Fees (Your Lawyer’s Share)
Once you find your dream home, you’ll need a lawyer to check the documents and guide you through the transaction. Legal fees typically range from 5%–10% of the property value, though some lawyers may charge a flat fee. Expect to pay more for properties in high-demand areas like Lekki, Ikoyi, or Ikeja.
Why it matters: A reliable lawyer will help you avoid buying problematic property. It’s better to spend money upfront on legal fees than to face issues down the line.
2. Agency Fee (The Agent’s Cut)
If an agent connects you to the property, they will take an agency fee, usually 5% of the property value. Even if you found the house online, if an agent steps in, expect to pay.
Pro Tip: Agree on the agency fee before you proceed to avoid any surprises later.
3. Survey Plan Cost
You’ll need a survey plan to confirm the exact size and boundaries of the land or house. The cost varies depending on the location but can range from ₦150,000 to ₦1 million or more in Lagos.
Hidden truth: Some properties may already have a survey, but you’ll still need to verify and possibly update it in your name.
4. Governor’s Consent or C of O Charges
Many Lagos properties come with either a Certificate of Occupancy (C of O) or Governor’s Consent. If the property you’re buying has a C of O and you’re not the first owner, you’ll likely need to process Governor’s Consent.
This could cost millions, depending on the property’s size and location.
Don’t overlook this: Without proper consent, you might not have full ownership rights. It’s a necessary legal step to ensure the property is yours.
5. Development Levy
In some estates or newly developed areas, you may be asked to pay a development levy. This covers costs for roads, drainage, streetlights, and sometimes security. It’s not always mentioned upfront, so be prepared. The cost can range from ₦500,000 to ₦5 million or more, depending on the estate.
6. Documentation Fees (Paperwork Isn’t Free)
Developers or property sellers will charge for documentation like the Deed of Assignment, receipts, and allocation letters. These could cost anywhere from ₦100,000 to ₦1 million or more.
Reality check: Buying a property isn’t just about paying for the house itself—documentation ensures you have legal ownership.
7. Omo Onile (Land Grabbers & Local Challenges)
If you’re buying undeveloped land, especially in certain areas, you may face demands from local “omo onile” or land grabbers. These individuals may charge you for fencing, laying the foundation, or even just visiting the site.
The costs can range from hundreds of thousands to millions.
How to avoid this: Stick to verified estates or areas with government allocation.
8. Cost of Title Verification (Not All Documents Are Legit
Even when a property has a C of O or Governor’s Consent, you’ll still need to verify the title at the Lagos State Land Registry. This can cost between ₦50,000 to ₦300,000.
Why it’s crucial: Some property documents can be forged. You want to verify them before making any payments.
9. Utility Connection Charges
After moving in, you might need to pay for the connection of utilities like:
- Electricity (Prepaid meter or transformer contribution)
- Water (Borehole or estate water)
- Waste disposal registration
These costs can add up to ₦200,000 to ₦500,000 or more.
10. Renovation or Finishing (Especially for ‘Buy & Fix’ Properties)
If you’re buying a second-hand home or a fixer-upper, be prepared for renovation costs. This could include painting, plumbing, tiling, roofing repairs, and more.
Expect to spend between ₦500,000 to ₦5 million depending on the property’s age and condition.
Note: Always get a builder or engineer to inspect the property and give you an estimate before buying.
Final Thoughts: Don’t Just Budget for the House—Budget for the Extras!
Many people save, say, ₦50 million for a house but realize they need another ₦5–₦10 million for all the extra costs they didn’t anticipate. Smart tip: Set aside 10%–20% of the property price for these hidden costs so you’re not caught off guard.
Bonus Tips:
- Always involve professionals—lawyers, surveyors, and real estate consultants.
- Don’t rush just because an agent says “another buyer is coming tomorrow.”
- If a deal seems too good to be true, it probably is.
Need Help Navigating the Lagos Property Market Without Falling Into Hidden Cost Traps?
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(And unofficial Omo Onile negotiator. I’ve got it covered.)
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