The additional costs of buying

Once all of the legal work has taken place, the completion statement will be issued showing the remaining costs that need to be paid. These will include:

The deposit:

This is normally at least 5% of the purchase price.

Stamp Duty Land Tax (SDLT)

You may also have to pay Stamp Duty Land Tax. This government tax is payable on property or land above a certain price threshold in England or Northern Ireland. Use our stamp duty calculator to work out how much your stamp duty will be.

Similarly, if you’re buying a property or land in Scotland or Wales, there are equivalents of this tax that you might have to pay. Different rates apply for different property prices, so it’s worth looking into it well in advance.

For full information on stamp duty, including what it is, how much it costs and to use our stamp duty calculator, take a look here.

Land and Buildings Transaction Tax

Land and Buildings Transaction Tax (LBTT) is the Scottish equivalent of Stamp Duty Land Tax and needs to be paid for any land purchases alongside both residential and commercial property purchases.

A fairly new tax, it was introduced as a replacement to stamp duty in April 2015.

Visit the Scottish Government’s website for more information and an up to date breakdown of each tax band.

Land Transaction Tax

Land Transaction Tax (LTT) applies to properties and land purchased in Wales, replacing stamp duty in April 2018.

Land Transaction Tax applies to properties that are either bought or leased above a certain price threshold.

Visit the Welsh Government’s website for more information and the latest breakdowns.

Pro-rated leasehold charges

The service charges and ground rent due for leasehold properties are often paid annually or every six months. If the seller has already paid for a period when you will be the owner, you will need to reimburse them the amounts that have already been paid.

Engrossment Fee

This is payable for new build properties and is a fee payable to the developer’s conveyancer for preparing and supplying the legal documentation for signature. The fee varies depending on the developer but is typically £120 – £150.

Land Registration Fee

This is the amount you need to pay to the land register in order to register the property in your name. There is a table of charges depending on when and how the registration is made but the maximum current charges are:

Property Price	Fee
0 to £80,000	£40
£80,001 to £100,000	£80
£100,001 to £200,000	£190
£200,001 to £500,000	£270
£500,001 to £1,000,000	£540
£1,000,001 and over	£910

Transfer of Money Fee

This is usually a flat fee charged to transfer the money during the transaction as it is usually sent be CHAPs transfer

Finally, other costs which you may want to consider are:

• Life Insurance: It may be a requirement of your mortgage, but if not it is still worth considering as it will cover the cost of the outstanding mortgage if you were to die.
• Buildings Insurance: this will be required if you are purchasing your property freehold and will be a condition of the mortgage. If you are purchasing the property leasehold, the property is normally insured by the freeholder and you contribute towards the cost
• Removals costs — Unless you are travelling light, it is likely you will need to get professional movers in. Get quotes from a removal firm that’s a member of The British Association of Removers.
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