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Ultimate Guide to Buyers’ Costs in UK Property Purchase 2023

SOLICITOR’S/CONVEYANCING COSTS (ESTIMATED)

  • £1,000 – £1,800

LOCAL AUTHORITY SEARCH FEES (ESTIMATED)

  • £150 – £300

LAND REGISTRY FEES:

Scale 1 fees relate to the registration of both new builds and resale properties for monetary consideration.

For a purchase of £0 – £80k

  • £20.00

For a purchase of £80,001-£100k

  • £40.00

For a purchase of £100,001 – £200k

  • £100.00

For a purchase of £200,001 – £500k

  • £150.00

For a purchase of £500,001 – £1,000,000

  • £295.00

For a purchase of £1,000,001 and over

  • £500.00

Apply using the portal or Business Gateway, for registration of all leases and transfers or surrenders which affect part of a registered title

For a purchase of £0 – £80k

  • £45.00

For a purchase of £80,001-£100k

  • £95.00

For a purchase of £100,001 – £200k

  • £230.00

For a purchase of £200,001 – £500k

  • £330.00

For a purchase of £500,001 – £1,000,000

  • £655.00

For a purchase of £1,000,001 and over

  • £1,105.00

STAMP DUTY LAND TAX (SDLT) (UNTIL 31/09/2022):

  • Up to £250,000: Zero
  • The next £675,000 (the portion from £250,001 to £925,000): 5%
  • The next £575,000 (the portion from £925,001 to £1.5 million): 10%
  • The remaining amount (the portion above £1.5 million): 12%

Example: In October 2022, you buy a property for £295,000. The SDLT you owe will be calculated as follows:

  • 0% on the first £250,000 = £0
  • 5% on the final £45,000 = £2,250
  • Total SDLT = £2,250

OTHER FEES TO CONSIDER (ESTIMATED, DEPENDENT ON CIRCUMSTANCES):

MORTGAGE ARRANGEMENT FEE

  • Expect to pay a fee of at least £1,000 to secure an attractive rate. Some can be £2,000 or more.
  • The lender will usually offer you the option to pay the arrangement fee upfront, or you can add the fee to the mortgage. Adding the fee to the mortgage means paying interest on it for the life of the loan. Paying upfront might involve a risk of losing the fee if anything goes wrong with the purchase.

MORTGAGE VALUATION

  • Typically, around £300 – £600, but can be significantly more.

MORTGAGE BROKER’S FEE

  • £0 – £500 usually paid at the mortgage application.

BUILDINGS INSURANCE

  • Estimated at £200 – £300 annually. The price depends on the cover you require and your excess. Building insurance is calculated based on the cost of rebuilding your home, known as the ‘buildings sum insured.’

GROUND RENT (LEASEHOLD ONLY) & SERVICE CHARGES

  • Ground Rent: £700 – £4,000 annually for leasehold properties in England and Wales.
  • Service charges vary based on the building and the services provided. These charges are audited and can change annually, generally in April. New freehold homes may also have service/estate charges for maintenance of communal areas.

REMOVALS (IF REQUIRED)

  • £500 – £2,500

First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.

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