Article written by Asad Khan.

Buying a home is one of the most significant financial commitments you’ll ever make. While most buyers focus on saving for a deposit and securing a mortgage, many underestimate the additional costs involved in the process. These ‘hidden’ expenses can add thousands to the overall price, catching buyers off guard if they’re not fully prepared.

As a conveyancing lawyer, I’ve seen first-hand how unexpected costs can disrupt homebuyers’ budgets. From legal fees and stamp duty to essential surveys and moving costs, understanding the full financial picture reduces the risk of any unaffordable surprises. I’ll outline some of the lesser-known costs of buying a property and how to plan for them effectively.

Additionally, you can work out an accurate cost of buying your new property with our free online calculator. Make sure to check it out.

Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying a property in England and Northern Ireland. This tax applies to home above a certain price threshold and is calculated as a percentage of the purchase price. So, how much will you pay?

First-time buyers

If you’re purchasing your first home, you may be eligible for SDLT relief, meaning you won’t pay tax on properties up to the value of £425,000. Above this a reduced rate applies. For most first-time buyers, it’s unlikely that their property will be valued above this figure, but let’s say that the value is £450,000, then a reduced rate of 0.28% will apply and so they should expect to pay £1,250 in SDLT.

Home movers

If you already own a property, SDLT applies to purchases over £250,000, with rates increasing as the price rises. So, for a property valued at £300,000, the effective tax rate is 0.83% making your SDLT charge £2,500.

Additional properties

For second home buyers or buy-to-let properties, a 3% surcharge applies on top of standard rates. For example, a property valued at £275,000 will have an expected tax rate of 5.45%, making the SDLT charge £15,000.

Understanding SDLT early in the process allows you to budget accordingly and avoid last-minute financial hurdles. If you’re unsure how much you’ll need to pay, again I recommend using our free home buying calculator to provide an accurate estimate.

When securing a mortgage, many buyers focus on interest rates and monthly repayments, which is important to establish long-term affordability, but several upfront fees can catch you off guard. These include:

Arrangement fees

Some lenders charge an arrangement fee for setting up your mortgage, which can range from £0 to £2,500. You may be able to add this fee on top of your mortgage, but you should be aware that his means you’ll pay interest on it over the loan term.

Valuation fees

Before approving your mortgage, lenders require a property valuation to ensure it’s worth the amount you’re borrowing. Some lenders offer this for free, but others charge between £150 and £1,500 depending on the property’s value.

Mortgage broker fees

If you’re using a broker to find the best mortgage deal, they may charge a fixed fee or a percentage of the loan amount. Expect to pay anywhere from £300 to £1,000, though some brokers work on commission from lenders instead. This might be worth finding out beforehand to save you some money.

Early repayment charges

If you’re planning to pay off your mortgage early or switch lenders before your fixed-term deal ends, be aware of early repayment charges (ERCs). These can be 1-5% of your remaining mortgage balance, which adds up to thousands of pounds in some cases. Again, we can help you establish these costs by clicking ‘Remortgage’ on our home buying calculator.

How to avoid unnecessary mortgage fees:

Knowing these costs early can help you factor them into your budget, so it’s worth exploring all your options before committing to a mortgage. As mortgage fees fall outside of the conveyancing process, they won’t be considered in our online home buying calculator, so make sure to add these when calculating the cost of buying your home.

Every property purchase requires a conveyancing solicitor or licensed conveyancer to handle the legal aspects of transferring ownership. The cost of conveyancing varies depending on the property price, complexity, and whether it’s a leasehold or freehold property.

Conveyancing fees

For example, the legal fees for freehold property purchases cost less than leasehold properties. That’s because there’s less parties and work involved. Legal fees for a freehold property typically range between £850 and £1,500 plus VAT. For leasehold properties where additional work is requires, legal fees are slightly higher ranging between £1,2000 and £2,000 plus VAT.

Search fees

As part of the conveyancing process, you solicitor will conduct various searches to check for potential legal or environmental issues with the property. These include:

Search fees are what we conveyancers call disbursements (third-party costs paid to carry out the required due diligence). Search fees typically cost between £250 and £450 in total, though this can vary depending on the location of your new property.

Bank transfer fees

A telegraphic transfer or sometimes known as CHAPS fee is required to move large sums of money between solicitors, usually costing £20 to £50. But most banks no longer charge these fees anymore. We don’t!

Land Registry Fee

Once the property is legally yours, the Land Registry must update its records. The cost depends on the purchase price:

Please note that these rates are accurate at the time of publishing this article. For an up-to-date calculation, please use our free online home buying calculator.

How to keep legal costs under control:

Legal costs are an unavoidable part of buying a home but understanding them in advance can help you budget effectively and avoid unexpected surprises. For what it’s worth, our conveyancing costs are outlined from the outline, and a member of our conveyancing team will always talk you through the process and costs to avoid ambiguities.

Buying a home is a major financial commitment, and the last thing you want is unexpected costs throwing you off track. That’s why knowing the full financial picture is important in buying a home. To make this easier, we’ve developed a Home Buying Calculator – a free online tool designed to give you a clear estimate of the costs involved in buying your home. Simply follow the details as accurately as possible to generate an instant breakdown of fees, helping you plan your finances with confidence.

If you’re unsure about any details, call us on 023 8023 4433. Our conveyancing team is happy to walk you through the process and ensure you receive the most accurate estimate possible.

When it comes the transaction of your property, you are going to want to choose the right conveyancing solicitors to get the job done. We’re proud of the service we deliver to our clients. When you instruct us to take care of your conveyancing you can expect to receive quality legal advice, regular updates, and your interests protected from start to finish. We’re also proud to offer:

*Please note that this is our average completion time but cannot always be delivered. Your conveyancing lawyer will advise you on a likely completion date upon taking your instructions.

Conveyancing Solicitors in Bournemouth

We are proud to provide expert conveyancing services in Bournemouth, ensuring a smooth and stress-free property transaction. Our conveyancing solicitors are highly experienced in residential property and adhere to the highest professional standards as part of our accreditation with the Law Society. Whether you’re a first-time buyer, moving home, or purchasing an investment property, we offer trusted legal support to guide you through the process.

Our Bournemouth office is conveniently located to serve clients across the area:

Leonard Solicitors LLP
Victoria Chambers, 27 Fir Vale Road,
Bournemouth,
BN1 2JN
Tel: 01202 149432

Contact us today to arrange a consultation with one of our expert conveyancing solicitors. We’ll provide clear, practical advice and ensure your transaction runs as smoothly as possible.

Conveyancing Solicitors in Southampton

For those in the Solent area, our conveyancing solicitors in Southampton offers dedicated conveyancing services to help you confidently navigate the home-buying process. We work diligently to ensure your purchase or sale is completed efficiently while protecting your interests.

Our Southampton office is conveniently located for clients throughout the region:

Leonard Solicitors LLP
62 The Avenue,
Southampton,
SO17 1XS
Tel: 02380 23 44 33

Get in touch with us today to speak to a qualified conveyancing solicitor. We’ll help you budget, plan ahead, and navigate the legal process with ease.