Legal Fees
Legal fees cover the work carried out by your conveyancing solicitor to manage the legal side of the property transaction.
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First-Time Buyers: What Extra Costs Should You Budget for When Buying a House?
People buying their first home often focus on the purchase price and deposit, but there are several additional costs to consider during the process. One of the most common questions our Conveyancing team receives from first-time buyers is what extra costs are involved when buying a property.
In a recent video shared during First Time Buyers’ National Home Buying Week, Sam Finn, Trainee Solicitor in our Conveyancing team, explains the typical additional costs buyers should be aware of when planning their purchase.
What Extra Costs Are Involved When Buying a Home?
Sam Finn talks through some of the additional costs buyers may need to consider, including legal fees, Stamp Duty where applicable, mortgage-related costs and other expenses connected with the purchase.
Video by Sam Finn, Trainee Solicitor in the Watkins Solicitors Conveyancing team.
What Extra Costs Are Involved Besides the Purchase Price?
Sam explains that, in addition to the property price and deposit, buyers should budget for a number of other costs involved in the transaction.
Stamp Duty Land Tax
Stamp Duty Land Tax may be payable depending on the purchase price and your circumstances.
Mortgage-Related Fees
Mortgage lenders may charge arrangement fees, valuation fees or product fees depending on the mortgage chosen.
Survey Costs
A survey can help identify potential structural or maintenance issues before the purchase completes.
Removals
Removal costs vary depending on the distance moved, the size of the property and the service used.
Home Insurance
Buildings insurance is usually required by a mortgage lender, while contents insurance is optional.
Legal Fees
Legal fees cover the work carried out by your conveyancing solicitor to manage the legal side of the property transaction. This includes reviewing contracts, carrying out property searches, liaising with the seller’s solicitor and mortgage lender, and ensuring the ownership of the property is transferred correctly.
A solicitor is required to complete the legal transfer of ownership and to register the purchase with HM Land Registry.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax payable to HM Revenue and Customs when purchasing property in England and Wales, depending on the purchase price and your circumstances.
First-time buyers may benefit from relief on properties up to certain price thresholds, meaning they may pay reduced Stamp Duty or none at all. Your conveyancing solicitor will calculate the amount due and submit the SDLT return to HMRC on your behalf.
Mortgage-Related Fees
Mortgage lenders may charge a number of fees when arranging your mortgage. These can include arrangement fees, valuation fees or product fees depending on the lender and mortgage product chosen.
These fees are set by the lender and are part of the cost of securing your mortgage finance.
Survey Costs
A property survey assesses the condition of the property and identifies any potential structural or maintenance issues.
While some lenders require a basic valuation to confirm the property’s value for mortgage purposes, this is different from a full survey. Many buyers choose to commission a survey themselves for additional peace of mind before completing the purchase.
Removals
Removal costs cover the practical expense of moving your belongings from your current property to your new home. The cost will vary depending on the distance moved, the size of the property and whether you use a professional removals company.
Home Insurance
If you are purchasing with a mortgage, your lender will usually require buildings insurance to be in place from the date of exchange of contracts. This ensures the property is protected in case of damage before the purchase completes.
Contents insurance is optional but often arranged at the same time to protect personal belongings inside the home.
How Much Should You Budget for These Costs?
A helpful guide is to budget approximately £2,000 to £4,000 on top of the purchase price and deposit to cover these additional expenses, although the exact amount will vary depending on the property and your individual circumstances.
Planning ahead for these costs can help ensure there are no unexpected surprises during the buying process.
Planning to Buy Your First Home?
If you are planning a purchase and would like advice about the conveyancing process, our specialist team can guide you through the legal work involved and explain the likely next steps.
Watch the Video and Get Support
The full video, featuring Sam Finn answering this frequently asked question, is available above and on our social media channels as part of First Time Buyers’ National Home Buying Week.
If you are planning to buy your first home and would like advice about the conveyancing process, our specialist team would be happy to help.
You can contact our Conveyancing team by emailing MovingHome@watkinssolicitors.co.uk or calling 0117 939 0350 to discuss your situation and next steps.
Conveyancing TikTok
Our Conveyancing TikTok features short videos from the Watkins Solicitors Conveyancing team answering common questions about buying and selling property, first-time buyer issues and the conveyancing process.
Follow @watkinssolicitors.convey for practical explanations from our team and to see our latest property videos.