The hidden costs of buying a home: What to budget for beyond the deposit

Buying a home is one of the biggest financial commitments most of us will ever make. Many first-time buyers save hard for their deposit, only to be surprised by the additional costs involved in the conveyancing process.

At MBH Solicitors, we guide clients through each step of their purchase - including what to budget for beyond the deposit. Here’s a breakdown of the main hidden costs you should plan for when buying property in the UK.

1. Stamp Duty Land Tax (SDLT)
   Stamp Duty is a government tax payable on property purchases above a certain threshold in England and Northern Ireland.
   
   The thresholds are:
   No SDLT for first-time buyers on properties up to £300,000.
   For non-first-time buyers, SDLT applies to properties over £125,000.
   
   Higher rates apply for additional properties (e.g., buy-to-let or second homes).
   
   It’s important to factor this into your budget, as SDLT can amount to several thousand pounds depending on the purchase price.
   
   
2. Conveyancing and Legal Fees
   You’ll need a solicitor to handle the legal work of transferring property ownership. Legal fees typically cover:
   
   
   • Drafting and reviewing contracts.
   • Carrying out ID checks and anti-money laundering checks.
   • Managing payments and liaising with lenders.
   Conveyancing costs vary but usually range between £850–£1,500 + VAT, depending on the complexity of the transaction.
   
   
3. Searches and Land Registry Fees
   Your solicitor will carry out searches to check f or planning issues, environmental risks, and local authority information that could affect the property. These usually cost around £250–£400.
   
   Once the property is transferred, you’ll also need to pay Land Registry fees to register yourself as the new owner. These range from £20–£910, depending on the property’s value and whether the application is submitted online.
   
   
4. Mortgage Costs
   Mortgage-related expenses can include:
   
   
   • Arrangement fees charged by your lender (sometimes up to £1,000+).
   • Valuation fees, where the lender assesses the property’s value (usually £150–£1,500, depending on the property price).
   • Mortgage broker fees, if you use a broker to find a suitable deal.
   Some of these may be added to your loan, but that means paying interest on them over the mortgage term.
   
   
5. Survey Costs
   It’s strongly recommended to have a property survey carried out to check the condition of the home. Options include:
   
   
   • Homebuyer’s Report: from around £500.
   • Full structural survey: from around £800+.
   A survey could save you from unexpected repair bills in the future.
   
   
6. Moving Costs
   Finally, don’t forget the practicalities of moving. Removal companies typically charge £300–£1,000, depending on distance and volume of belongings. Packing services and storage facilities are extra.

By budgeting for these hidden costs early on, you can avoid nasty surprises and ensure your move goes smoothly. At MBH Solicitors, our residential conveyancing team offers clear, upfront advice on all costs involved in the process - so you know exactly what to expect before you commit.

👉 Contact our team today to find out more about buying or selling property with confidence.