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20 September 2024 • Buying A Property

What are the upfront costs of buying a property in London?

There are several upfront costs to consider when buying in London:

  • Deposit: Typically 5-20% of the property’s purchase price, depending on your mortgage deal.
  • Stamp Duty: Stamp Duty Land Tax (SDLT) applies on properties over £250,000, with rates starting at 5% for homes above this threshold, and higher for more expensive properties. First-time buyers benefit from relief on homes up to £425,000.
  • Legal Fees: Conveyancing fees in London can range from £1,000 to £2,000, including VAT.
  • Survey and Valuation Fees: A basic valuation for your mortgage lender may cost £300-£500, while more thorough surveys (Homebuyer or Building Survey) can range from £500 to £1,500.
  • Other Costs: This includes mortgage arrangement fees (up to £1,000), potential broker fees, and moving costs.