The cost of buying a home

The cost of buying a home

When you think of buying a new home, you might think of a deposit and mortgage repayments, when in fact there are many more costs involved that you might not expect.

 

Let’s imagine you are moving into a £200,000 home and break down the money that  you’ll need to part with:           

 

Deposit at 30% = £60,000

                                

Stamp duty (2%) = £1,500

This is the tax you pay to buy a property. Note: you don’t pay stamp duty on the first £125,000. Therefore, we work the stamp duty out on a £200,000 property as 2% of £75,000. Click here to see a full list of the percentage to value thresholds  

             

Mortgage costs = £600 average* (although some lenders can charge up to £2,000)    

Also known as a ‘booking fee’ or ‘application fee’, these are fees that the lender takes for arrangement costs and admin fees

                        

Survey = £1000 average*

Note: You should have both a homebuyer report and a building survey, as these cover various necessary checks of your new home. Click here to read more about surveys and see a full list of the price to property value thresholds.     

                         

Land registry fees = £200 average*  

This is the fee that the Land Registry charges  to transfer a property register entry into your name. This fee is dependent on how much your property is worth; houses sold for between £100,001 and £200,000 will face a fee of £200, and those sold between £200,001 and £500,000 will need to pay £300.

 

Lawyers fees (also known as solicitor fees) = £1000 average*  

‚ÄčThis is the cost that you pay your solicitor to cover the cost of all the legal work associated with buying a home.

 

Removal fees = £800 (average* based on 3 bed)

The cost of hiring a moving van(s) and extra helping hands to get the contents of your home moved from one place to another.

 

              

This means that if you’re looking to buy a £200,000, the total price of moving home could be as much as £65,100. Don’t get stumped by fees you didn’t know existed or didn’t plan for, and make sure you have your funds in place before you take your first steps towards purchasing your next property.



 


*Average costs taken from the most recent data made available to us. Please note that these may vary.