What are the costs of buying a house?

Survey costs

Typical cost: £400 – £1500 +

Before purchasing a property, you must conduct surveys to assess its condition. These surveys can range from basic homebuyer reports to comprehensive structural surveys, with costs varying accordingly. On average, survey fees can range from £400 to £1,500 or more, depending on the type and size of the property.

Purchasing a Shared Ownership property is an exciting step towards achieving homeownership. Here’s a comprehensive guide to help you navigate the buying process with confidence:

Solicitor or conveyancer fees

Typical cost: £500 – £1500 +

Legal assistance is essential throughout the home-buying process. Solicitors or conveyancers handle tasks such as property searches, contract reviews, and legal paperwork. Essentially, they do the leg work so you can have a more relaxed process. Fees for these services typically range from £500 to £1,500 or more, depending on the complexity of the transaction and the firm’s charges.

Mortgage arrangement and valuation fees

Typical mortgage arrangement costs: £0 – £2,000

Typical valuation fees: £150 – £1,500

Securing a mortgage involves arrangement and valuation fees. Mortgage arrangement fees can range from £0 to £2,000, while valuation fees typically cost between £150 to £1,500, depending on the lender and the property’s value. These fees are essential components of the mortgage process and should be factored into your budget.

You can dive a little deeper into these fees using Money Helper’s guidance inline with the UK Government rules and regulations. 

Removal and moving-in costs:

Typical costs: £1,400 = £2,100

Moving house incurs expenses for hiring a removal company, renting a van, or purchasing packing materials. According to Sirelo: “On average you can expect the removal costs for a 3-bedroom house to range between £1,400 – £1,600 for a local move and £1,800 – £2,100 for a longer distance.”

Additionally, setting up utilities and other services at your new property may entail additional charges.

Insurances

Typical costs: varies depending on coverage levels

Protecting your new home is paramount, and insurance plays a crucial role in safeguarding your investment. Buildings insurance covers the structure of your home, while contents insurance protects your possessions. Life insurance provides financial security for your loved ones in the event of your passing. The costs of these insurances can vary depending on factors such as coverage levels and the insurer.

Initial furnishing and decorating costs

Typical costs vary significantly, rough guide: £500 – £2,000+

Once you’ve moved into your new home, furnishing and decorating it to your tastes is an exciting but‌ expensive endeavour. From furniture and appliances to paint and decor, the costs can quickly accumulate. Planning and budgeting for these expenses are essential to ensure a smooth transition into your new living space.

Stamp Duty

Typical costs: 0% – 12%

Stamp Duty Land Tax (SDLT) is a tax levied on property purchases in the UK. The amount payable depends on the property’s value and whether you’re a first-time buyer or a homeowner. For Shared Ownership properties, SDLT is typically payable on the share you purchase rather than the full property value, resulting in lower upfront costs compared to traditional homeownership.

Stamp Duty Land Tax (SDLT) applies to properties over £250,000 and depends on the property price, purchase date, and eligibility for relief or exemption. You can use the SDLT calculator to determine the tax payable.

Rates for a Single Property:

Up to £250,000: Zero

£250,001 to £925,000: 5%

£925,001 to £1.5 million: 10%

Above £1.5 million: 12%