Many first-time buyers are surprised to discover just how many additional costs are involved in purchasing a property. Understanding these upfront means you can budget properly and avoid any unpleasant surprises.
Stamp Duty Land Tax (SDLT) is one of the most significant additional costs for buyers in England. The amount you pay depends on the purchase price and whether you’re a first-time buyer, a home mover or purchasing an additional property. First-time buyers benefit from relief on properties up to £500,000.
Legal fees for a solicitor or licensed conveyancer typically range from £1,000 to £2,500 depending on the complexity of the transaction. This usually includes the cost of searches, which can add a further £300 to £500.
A mortgage arrangement fee can range from zero to over £2,000 depending on the product. Some lenders allow you to add this to the loan, though you’ll pay interest on it over the mortgage term.
A survey is highly recommended even if your lender carries out a basic valuation. A full structural survey or homebuyer’s report can identify issues that could cost far more to fix than the survey itself. Costs range from around £400 to over £1,500 depending on the level of survey and the size of the property.
Removal costs vary enormously depending on how much you’re moving and how far. Get at least three quotes and book early, particularly if you’re moving at the end of the month when demand is highest.
Finally, don’t forget the ongoing costs of homeownership — buildings insurance, contents insurance, service charges if you’re buying a leasehold property, and the inevitable list of improvements and repairs that come with owning a home.
