Buying a home is a major life milestone, but many buyers are surprised to discover that the deposit is just one of many costs involved. From legal fees to moving expenses, the true cost of homeownership can be significantly higher than expected.

Stephen Greenwood, Director, Chartered Legal Executive & Head of Residential Property at Thomson Hayton Winkley, explains the lesser-known expenses that every buyer should be aware of before making a purchase.

Stamp Duty Land Tax (SDLT)

One of the biggest additional costs is Stamp Duty Land Tax. This government tax applies to most property purchases and is calculated based on the value of the home.

If you’re buying a property worth less than £125,000, you won’t pay any SDLT. But for more expensive homes, the tax can range from 5% to 12%. First-time buyers may be eligible for relief on homes up to £300,000. To avoid unexpected costs, it’s wise to speak with one of our residential property specialists early in the process.

The Deposit

While it’s not a hidden cost, the deposit is a significant financial commitment. Most buyers need to put down at least 5% of the property’s value, though many aim for 10% or more to access better mortgage rates.

For a £300,000 home, that means setting aside between £15,000 and £30,000 upfront.

Surveyor Fees

Before finalising your purchase, it’s important to have the property surveyed. This helps identify any structural issues or potential problems.

Survey costs vary depending on the type and depth of the report. A basic RICS Level 1 survey might start at £290, while more detailed surveys for higher-value homes can exceed £1,000.

Mortgage Fees

Arranging a mortgage often comes with its own set of fees. These can include arrangement fees, valuation fees, and sometimes broker fees.

Arrangement fees typically range from £500 to £1,000, and valuation fees can add another £300. Some lenders offer fee-free deals, but it’s important to compare all the costs—not just the interest rate.

Moving Costs

The cost of moving can be higher than expected, especially if you hire professional movers or need temporary storage.

Depending on the distance and the volume of your belongings, moving costs can range from a few hundred to several thousand pounds.

Maintenance and Repairs

Once you’ve moved in, you’ll need to budget for ongoing maintenance and unexpected repairs. From fixing a leaky roof to maintaining the garden, these costs can add up over time.

Setting aside a contingency fund can help you manage these expenses without stress.

Insurance

Home insurance is essential to protect your investment. Buildings insurance covers the structure of your home, while contents insurance protects your belongings.

Premiums vary based on the property’s size, location, and value. It’s important to shop around to find the right coverage at a competitive price.

How Thomson Hayton Winkley Can Help

Buying a home involves more than just saving for a deposit. By understanding the full range of costs involved, you can plan your budget more effectively and avoid financial surprises.

At Thomson Hayton Winkley, our Residential Property team is here to guide you through every step of the process—from calculating stamp duty to finalising your purchase with confidence.

For more information contact our property team to find out how we can help.

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