The real cost of buying property

Moving home can be stressful, time consuming and above all, expensive. But how much does it really cost to buy a new home and move in? We outline the main fees and expenses you should expect...

 
1. Mortgage

Not only is this probably the largest debt you'll accumulate, you can also expect some extra charges when you take a mortgage out.

• Mortgage valuation - carried out by your lender, this determines the value of the property for loan purposes but doesn't cover the state of the property
• Mortgage arrangement fee - often charged by a lender or broker for arranging your mortgage
• Mortgage exit fee - you may be liable to pay an exit fee if you're remortgaging, but this practice has hit the headlines recently and you may be able to claim it back

Tip - shop around and compare mortgages on the market for special deals, including no-fee offers.

 
2. Stamp duty

This is a tax payable on property purchases. Refer to the stamp duty bands alongside to work out how much you'll be charged.

Tip - due to rising house prices it's highly likely you'll need to pay this, so ensure you factor the cost in.

 
3. Conveyancing
Conveyancing is the legal side of buying a property. Your solicitor will handle all the paperwork and administration related to the purchase of your new home.

Tip - it can be tempting to put on your legal hat and manage this yourself, but it is a complicated process. You may be better off leaving it to the professionals.

 
4. Local land search
The search, carried out by your local council, will provide you with information relating to charges or responsibilities you'll be taking on when you exchange contracts, as well as possible development restrictions.

Tip - expect higher fees in London.

 
5. Land Registry
When property or land changes hands, you need to register this with the Land Registry. Use the band guide to the right to work out how much you'll need to pay.

Tip - check out the Land Registry website for more information.

 
6. Survey
A property survey will give you peace of mind that there are no problems with your new property. A homebuyer's report is briefer than the full building survey, only outlining the areas that need attention. This usually suffices if the property is modern and hasn't had any building or restructuring work. A building survey is a more comprehensive inspection of a property.

Tip - a mortgage valuation survey alone won't uncover potential problems with the building. A good survey will save you money in the long term should there be any issues.

 
7. Storage
Not all property transactions can be perfectly timed, in which case you may need storage. A hundred square metres roughly equates to 200 boxes of goods.

Tip - get quotes from several storage companies and see what special offers you can get. Many offer free days or weeks.

 
8. Removals
The final stage - moving day. The cost of hiring a removals firm depends on the size of your house, the distance you're moving and how involved you want the removal company to be.

Tip - hire a van and do it yourself. We got a quote for £130 a day from van hire company Sixt. Prices are cheaper on weekdays rather than weekends.

9. Selling a property

Read our guide to the real cost of selling property.

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