Step 2.4

Understand the Costs of Buying

Budget for tax, legal work, surveys, lending and moving as well as the deposit.

The deposit is the biggest number but never the whole bill. Stamp duty, conveyancing, searches, the survey, lender fees and the move itself typically add thousands — money that must be in your account, not your mortgage. This step itemises the full cash requirement so nothing arrives as a surprise in the final month.

Stamp duty and first-time buyer relief

Stamp Duty Land Tax (SDLT) applies to purchases in England and Northern Ireland, charged in marginal bands. First-time buyers currently pay nothing up to £300,000 and 5% on the portion to £500,000 — but a home over £500,000 loses the relief entirely, which creates a genuine cliff edge. The stamp duty calculator applies the current bands to your price and circumstances; rates change at Budgets, so check close to purchase.

The legal bill: fees plus disbursements

Conveyancing quotes come in two parts: the firm's own fee for the legal work, and disbursements — third-party costs they pay on your behalf, such as searches, Land Registry fees and bank transfer charges. A quote that looks cheap may simply be hiding disbursements. Always ask for a fully itemised, fixed-fee quote and compare like with like.

Everything else, priced

Add the survey (£400–£1,500 depending on level), any mortgage arrangement or booking fee (£0–£1,500 — sometimes worth paying for a lower rate, sometimes not), a possible valuation charge, removals, and immediate essentials like locks and cleaning. The cost-of-buying calculator totals all of it against your price and deposit.

Typical upfront costs beyond the deposit (England, mid-range estimates)
ItemTypical rangeNotes
SDLT£0 for most first-time buyers under £300,000Use the calculator — bands are marginal and circumstances matter
Conveyancing fee£850–£2,000Get itemised fixed-fee quotes
Searches£250–£450Usually billed as a disbursement
Survey£400–£1,500Level 1, 2 or 3 — see Phase 4
Lender arrangement fee£0–£1,500Sometimes addable to the loan (with interest)
Removals£400–£1,500More for long distance or storage

Scenario: the real bill on a £300,000 first home

A first-time buyer purchases at £300,000 with a 10% deposit, expecting to need £30,000.

The actual cash requirement: £30,000 deposit, £0 SDLT (first-time buyer relief), roughly £1,425 conveyancing plus £350 of searches, a £750 Level 2 survey, £750 of lender fees, and £950 of removals.

Outcome: Total: about £34,225 — more than £4,000 beyond the deposit. Budgeted from the start it is a line item; discovered in the final month it is a crisis or a credit card balance at the worst possible moment.

Your action list

Practical tips

  • If a lender fee can be added to the loan, price both routes — a £999 fee financed over 30 years costs far more than £999.
  • Ask any conveyancing quote to list disbursements separately and confirm the total is fixed.

What can go wrong

  • Saving exactly a deposit and nothing more is the most common Phase 2 planning failure.
  • SDLT rules and thresholds change at Budgets — a purchase planned across a fiscal event needs a recheck.
  • PropertySquares provides education, not financial or legal advice. Verify current rules and obtain advice for your circumstances before acting.