Buying a home

What are the costs of buying a house besides the deposit?

Your deposit is the big one, but it is not the only cost of buying a house. Beyond it you will need to budget for stamp duty, solicitor or conveyancing fees, a survey, mortgage fees and moving costs. For most buyers in Kent and South East London that means a few thousand pounds on top of the deposit, and more once stamp duty applies. Here is what each cost covers and what to set aside.

Stamp duty

Stamp duty is often the largest extra cost, and how much you pay depends on the price and whether you are a first time buyer. In England, first time buyers pay nothing up to £300,000, then 5% on the portion between £300,001 and £500,000. Above £500,000 the first time buyer relief no longer applies and standard rates take over. If you have owned before, you start paying sooner.

Solicitor and conveyancing fees

Conveyancing is the legal work that transfers ownership of the property to you, handled by a solicitor or licensed conveyancer. There are two parts to the bill:

• The legal fee: what the solicitor charges for their work, usually around £800 to £1,500.
• Disbursements: third-party costs they pay on your behalf, which typically add £250 to £700.

Those disbursements usually include local authority, environmental and water searches, the Land Registry fee to register you as the new owner, a bank transfer fee on completion day, and identity checks. All in, most buyers spend somewhere around £1,500 to £2,500. Leasehold flats, common in parts of South East London, involve extra legal work and tend to cost a little more.

Survey costs

A survey checks the condition of the home before you commit. It is not a legal requirement, but skipping it can be a false economy: the right survey often flags issues that save far more than it costs. There are three RICS levels:

• Level 1 (Condition Report): a basic overview, best for newer homes in good order, from around £300.
• Level 2 (HomeBuyer Report): the most popular choice for a standard home, usually £400 to £1,000.
• Level 3 (Building Survey): a detailed inspection for older, larger or altered properties, from around £600 up to £1,500 or more.

Mortgage fees

Depending on the deal you choose, your mortgage can come with a few fees of its own: an arrangement or product fee that can run up to around £1,500, a valuation fee of up to about £300, and a broker fee if you use one, though many brokers are fee free. Some lenders offer fee-free deals, so it is worth weighing the fee against the interest rate rather than looking at either on its own.

Moving and setting-up costs

Once the purchase is going through, the practical costs begin:

• Removals: usually £450 to £1,400, depending on how much you are moving and how far.
• Buildings insurance: you usually need this in place from the day you exchange contracts.
• Settling in: furniture, redecorating and the first round of bills all add up, so leave a little in reserve.

Costs at a glance

Here is a rough guide to the typical costs on top of your deposit:

These are typical UK ranges at the time of writing and vary by property, complexity and area. Values in London and the South East can push some costs, such as conveyancing and surveys, towards the higher end.

Buying in Kent and South East London

Higher local property values mean stamp duty and some fees can sit at the upper end of these ranges, and leasehold flats in parts of South East London come with a little extra legal work. The upside is that knowing the full picture early makes budgeting far easier. If you would like a steer on what to expect for a particular price range, our sales team can talk you through the likely costs for the homes you are considering.

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