What Costs to Keep in Mind when Buying a New Property

When buying a home, it’s not just the purchase price of the house you have to budget for. There are a whole host of other costs associated with buying a home, and they can take you by surprise if you’re not prepared.

Here are some of the largest and more important costs to keep in mind when buying a new property or a piece of land:

For most homebuyers, the largest fee is going to be the deposit. Especially as the larger the deposit, the better interest rate you’ll typically secure.

The average deposit for first-time buyers in the UK is around 15%. For a £200,000 home, that means putting down £30,000. It’s not uncommon to buy a home with a 5% deposit though.

Stamp duty
When buying land or property in the UK, you’ll have to pay stamp duty on purchases over £125,000. Unless you’re a first-time buyer, in which case you’ll not pay stamp duty on the first £300,000 for properties up to the value of £500,000.

There are some other rules and stipulations to take into account too. It’s advisable you use a stamp duty calculator or consult with a tax advisor for an accurate valuation.

Stamp duty starts at 2% for the £125,000-£250,000 price range, then scales up to 5%, 10%, and 12%. So, as you can see, it accounts for a sizeable chunk of your purchase costs. You’ll want to budget for stamp duty when deciding on how much you can afford.

Surveyor’s fees
Before you buy a home, you need to arrange for a surveyor to perform a detailed inspection of the property.

A property surveyor inspects a property for any signs of structural problems, minor and major repairs, and they’ll highlight anything that can impact your decision to buy the property or the estimated value.
You can typically expect a survey to cost between £300-£500. Although the price can keep rising depending on the size of the home and your exact specifications.

Valuation fees
Some lenders or mortgage products charge a valuation fee for commissioning a mortgage valuation.
A mortgage valuation is an inspection carried out by the lender to validate the home will provide suitable security to lend you the amount you’re asking for.

It’s often calculated on a small percentage of the home’s sale price and usually falls within £100-£1,000.

Solicitor and legal fees
You don’t need a solicitor by law to buy a house, but it’s strongly recommended. Solicitors oversee the whole process of buying a home and safeguard you against fraud, will pick up on anything that doesn’t seem right, and handle all of the legal paperwork.

Their fees include a number of things, such as money transfer fees, carrying out local searches, handling all the paperwork, communicating with various other parties on your behalf, and more.

As a ballpark figure, you can expect to pay between £1,000-£1,500.

Land registry fees
You will need to inform and pay the Land Registry when you buy a new home to register the property under your name.

Your solicitor might factor this into their costs and take care of it for you, but it’s something to keep in mind and budget for either way.

Your lender will require buildings insurance at the very least to protect your home against natural disasters, floods, fire, and so on.

You can add contents insurance and upgrade your cover depending on what level of insurance you feel comfortable with. This cost will usually start at around £100.

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Estate Agent Talk

How to Buy a Property in Today’s Competitive Market

Introduction It is common knowledge that the current real estate market is thriving, particularly in Florida. It is always highly in demand, and prices are rising due to the influx of people by the hundreds of thousands and even the millions. You are now perplexed about how you will ever be able to buy a…
Read More
US Flag
Breaking News

Is the state of Georgia a good place to retire?

Introduction Florida and Georgia have been friendly rivals for a long time, probably most famously on the football field where the universities of the two states compete against one another yearly. But Florida and Georgia are also engaged in a fresh competition over which state offers a superior environment for retirees. You are lucky since…
Read More
Overseas Property

Moving to Vancouver: Is living in Vancouver pricey?

Introduction One of the cities in Canada and all of North America with the highest population density in Vancouver. It is the most culturally and linguistically diverse city in Canada and the third-largest metropolitan area in the country. Since 2014, the city has been the permanent location for TED conferences and has hosted several international…
Read More
how to present your property for sale
Overseas Property

The Top 5 Real Estate Agents in Mississauga

Looking for a real estate agent in Mississauga? Look no further! We have compiled a list of the top 5 agents in the city, based on their experience and success rate. Whether you are looking to buy or sell property, these agents will be able to help you achieve your goals. Contact one of them…
Read More

Real Estate Copywriting Guide: 5 Tips For More Sales

Content related to real estate takes an important place in the thematic sections of copywriting. People always buy, sell or rent housing, which means this topic never loses relevance. However, real estate content cannot be called simple, but if you want big sales, you need to improve in this area, and you can learn how…
Read More
Breaking News


Daily bite-sized proptech and property news in partnership with Proptech-X.   Half of tenants who fear never owning own home face uphill battle in pet-averse rented sector New research from animal welfare charity Battersea reveals that one in two tenants fear they will never buy a home, with the growing number of lifetime renters significantly…
Read More