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 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.

These commonly include:

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?

While the exact amount will vary depending on the property and individual circumstances, 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.

Planning ahead for these costs can help ensure there are no unexpected surprises during the buying process.

Watch the video and get support

The full video, featuring Sam Finn answering this frequently asked question, is available 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.