Buying a house is a massive commitment and for many of us it is the biggest financial investment we will ever make.
To help clear some of the confusion surrounding the purchase of a property see the table below which outlines the main costs which are inevitable when buying your new home.
| Purpose |
Approximate Amount |
| Solicitor: Coordinates the legal transaction of the property. |
Costs vary greatly between solicitors. Approx £200 - £600 +VAT |
| Survey: Looks at the property to ensure it is worth the price you are paying for it. You may want to get a more detailed survey done if you are purchasing an older property. |
Approx £200 - £1000 depending on the type of survey you decide upon. |
| Searches: Check the surrounding area to see if there are any environmental issues such as flooding, subsidence or any plans for large supermarkets opening up on your doorstep etc. |
Approx £300 |
| Land Registry: This changes the names on the Land registration from the previous owners to you. |
Approx £220 |
| Stamp Duty: This is tax payable on the agreed purchase price of the property. |
Varies according to purchase price. See below table for details. |
| Mortgage Associated Costs |
From £0 - £ 500 approx. Some Lenders offer special deals on these costs.
See Apply for a mortgage for details on costs. |
| Deposit |
Varies between Lenders and the type of mortgage you choose, but generally a deposit of 10% of the purchase price is acceptable. |
| Refurbishment & or decoration |
Don’t forget to budget for the essential jobs that must be done, such as Electrical work, Gas Central Heating etc. Get at least three quotes to help you compare. |
| Furniture & or furniture removal: Of course you are going to need to furnish your new home or maybe provide transport to move your existing furniture to the property. |
This cost is as much or as little as you make it! Shop around for furniture and for removal quotes. You may even want to consider hiring a van and moving your existing furniture yourself. |
| Building Insurance: You will want to shop around in advance for this insurance. Once you take ownership of the property your insurance should start, that way you are covered if there was a fire etc. |
This cost is dependent upon the size of the property, location etc. More information on Buildings Insurance. |
| Contents Insurance: This applies once you have started to move your furniture and personal belongings in to the property. |
This cost is dependent upon the type of cover you want. More information on Contents Insurance Cover. |
| Life Insurance: This policy pays out a lump sum on your death. The idea is to make sure that the amount repaid will at least cover your mortgage. |
The cost is dependent on how much you are insuring. Ie If you want to cover £130,000 you can expect to pay approx £15 per month. This may already be built into your mortgage, so check your policy. more information on Life Insurance Cover. |
This is a tax placed on the purchase price of the property and is paid directly to the government.
| Purchase Price |
Tax Payable ( % of purchase price ) |
| Up to £125,000 |
0% |
| £125,001-£250,000 |
1% |
| £250,001-£500,000 |
3% |
| £500,001-Upwards |
4% |
