Budgeting For Stamp Duty And Conveyancing Fees

Why Your Deposit Isn’t The Whole Story

When you’re saving for a home, it’s easy to focus on the deposit. But the deposit is only part of the upfront cost. Stamp duty, conveyancing fees, surveys, and removals can add thousands to your budget. In fact, many buyers are surprised to find they need an extra 5–10% of the purchase price to cover these costs. Planning for them now means no nasty surprises on completion day.

Stamp Duty: The Biggest Single Extra

Stamp duty is a tax you pay when you buy a property. In England and Northern Ireland it’s called Stamp Duty Land Tax (SDLT). Scotland has Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT). The amount depends on the price, whether you’re a first-time buyer, and whether you already own property.

As a guide, in England for a standard purchase in 2025/26, you pay nothing on the first £125,000, 2% on the portion from £125,001 to £250,000, and 5% on the portion from £250,001 to £925,000. First-time buyers pay nothing up to £300,000, then 5% up to £500,000. To qualify, you must never have owned a property anywhere in the world. If you already own a property, you’ll usually pay an extra 5% surcharge on top.

• £300,000 standard purchase: £5,000 stamp duty.
• £300,000 first-time buyer: £0.
• £500,000 standard purchase: £15,000.
• £500,000 first-time buyer: £10,000.

You must file an SDLT return and pay within 14 days of completion, even if no tax is due. Always check the current thresholds and reliefs before you make an offer. Rates change, and a difference of a few thousand pounds can affect what you can afford.

Conveyancing Fees: What You’re Actually Paying For

Conveyancing is the legal work that transfers ownership from seller to buyer. Your solicitor or licensed conveyancer will handle searches, contracts, and the transfer of funds. Their fee is usually quoted as a base cost plus disbursements – third-party costs they pay on your behalf.

• Solicitor’s fee: typically £800–£1,500 plus VAT for a freehold purchase. Leasehold adds £100–£300.
• Local authority search: £50–£100.
• Water and drainage search: £50–£80.
• Environmental search: £30–£60.
• Land Registry fee: £20–£1,000+ depending on price.
• Bank transfer fee: £25–£50.
• Leasehold management pack: £150–£400 (if leasehold).

Ask for a full written quote before instructing anyone. Some firms add extra for dealing with a lease, a new build, or a gifted deposit. It’s better to know now than to find an unexpected invoice later.

Surveys And Searches: The Hidden Essentials

A mortgage valuation is for your lender, not for you. It tells them the property is worth what they’re lending. It won’t tell you about damp, subsidence, or a leaky roof. For that, you need your own survey.

• Condition report: £250–£400. Basic overview, suitable for new builds.
• Homebuyer report: £400–£700. Covers visible defects and urgent repairs.
• Building survey: £600–£1,500+. Detailed inspection, ideal for older or unusual homes.

You’ll also pay for searches as part of conveyancing. These reveal things like planning permissions, flood risk, and whether the property is on contaminated land. Skipping them is a false economy.

Removal Costs And The First Week

Moving day itself costs money. A local move with a professional van and two movers is typically £300–£800. Long-distance moves can be £800–£1,500. Packing services add £200–£600. If you need storage between homes, budget £50–£150 per week.

Don’t forget the first week in your new home. You may need to change locks (£100–£200), connect utilities, redirect post, and buy essentials like curtains or a washing machine. A small contingency fund of £500–£1,000 is wise.

Building A Realistic Budget

Add up every cost before you exchange contracts. As a rule of thumb, set aside 5–10% of the purchase price for stamp duty, legal fees, surveys, and removals. For a £300,000 home, that’s £15,000–£30,000. First-time buyers may pay less stamp duty, but still face conveyancing, survey, and removal costs.

• Stamp duty or LBTT/LTT: check your exact figure.
• Conveyancing: £1,200–£2,000 all in.
• Survey: £400–£1,000.
• Removals: £400–£1,200.
• Contingency: £500–£1,000.

Speak to your solicitor and mortgage broker early. They can give you precise figures for your situation. A well-planned budget turns a stressful purchase into a confident one. And that’s exactly what you deserve.