Buying a home is an exciting step, but it’s not just the sale price you need to think about.
Many buyers are caught off guard by additional expenses that can quickly add up. To help you plan ahead, Anthony Swift, Legal Director & Deputy Head of the Residential Property team at Jackson Lees, breaks down seven often-overlooked costs that come with purchasing property in England and Wales.
1. Stamp Duty Land Tax (SDLT)
Stamp Duty is one of the largest extra costs buyers face. It’s a government tax applied to property purchases, and the amount depends on the value of the home.
For example, homes priced under £125,000 are exempt, but higher-value properties can attract rates between 5% and 12%. First-time buyers may qualify for relief on homes up to £300,000. Unsure how much you’ll owe? Our residential property experts can help you calculate your SDLT and plan accordingly.
2. Your Deposit
Although it’s a well-known part of the process, the deposit can still be a financial shock. Most lenders require at least 5% of the property’s value, but putting down 10% or more can unlock better mortgage deals.
For a £300,000 home, that’s anywhere from £15,000 to £30,000 upfront—so it’s important to have this saved well in advance.
3. Survey Costs
Before you commit to a purchase, it’s wise to get a professional survey done. This helps uncover any hidden issues with the property.
Survey costs vary depending on the level of detail. A basic RICS Level 1 survey might cost around £290, while more thorough inspections for larger or older homes can exceed £1,000. It’s a small price to pay for peace of mind.
4. Mortgage-Related Fees
Getting a mortgage isn’t free. You may encounter arrangement fees, valuation charges, and even broker fees.
Arrangement fees can range from £500 to £1,000, and valuation fees typically hover around £300. Some lenders offer fee-free options, but it’s essential to compare deals carefully to avoid overpaying.
5. Moving Expenses
The cost of moving can vary widely depending on how far you're going and how much you’re taking with you.
Hiring a professional removals company, renting a van, or paying for temporary storage can all add up—sometimes into the thousands. It’s worth getting quotes early so you can budget accordingly.
6. Repairs and Maintenance
Once you’ve moved in, the spending doesn’t stop. From fixing minor issues to handling unexpected repairs, homeownership comes with ongoing responsibilities.
Whether it’s a leaky tap or a garden that needs regular upkeep, setting aside a maintenance fund can save you stress down the line.
7. Home Insurance
Protecting your new home is essential. Buildings insurance covers the structure, while contents insurance protects your belongings.
Premiums vary based on location, property type, and coverage level. Shopping around for the best deal ensures you’re covered without overpaying.
How Can Jackson Lees Support You?
Buying a home is a major investment, and being prepared for these hidden costs can make the process smoother and less stressful. At Jackson Lees, our Residential Property team is here to guide you through every step of the journey — from budgeting to completion.
Are you currently thinking about purchasing a new home? Please give us a call, request a callback or make an enquiry to find out how we can help.