Understanding buying costs

18 March 2019
When preparing to buy a new home, it’s important to understand the costs involved in the entire process. We’ve put together the main costs you’ll see along the way of your home buying journey.


To buy a new home, you normally need between a 10% - 20% deposit of the total value of the home you choose. However, with our range of buying options available on our new homes, you can now buy a home with as little as a 5% deposit.


Help to Buy

Thanks to Help to Buy, you’ll be pleased to hear that you only need a 5% deposit to buy a brand new home. Want to hear something even better? Here at Space Homes we offer Help to Buy on all our new homes marked ‘for sale’! Whatever the total cost of your new home, work out 5% of it and that’s exactly how much you’ll need for a deposit.

The table below shows an example of the deposit you’ll need when buying a £200,000 home.
£200,000 £10,000 £40,000 £150,000

Shared Ownership

If you’re buying with Shared Ownership, you’ll need a 5% deposit of the share you’re buying. Below you can see an example of how much deposit you’ll need on a home with a total value of £200,000.
£200,000 £70,000 £3500
*5% deposit based upon mortgage lender

You can find out more about our home buying options here.

Valuation fee

Your mortgage lender will need to value your home before they lend you any money. Although some lenders will offer free valuations, others may charge. You can expect to pay between £150 - £1500 based upon the property’s value.

Surveyors fee

When purchasing an older home people are often advised to have a survey carried out on the property, this check for any issues with the home.

When purchasing a new build you do not need to have a survey done on the property.

The property will have already undergone vigorous checks and has been formally signed off by various parties including building control, NICEIC and planning. Your new home will also come with a warranty.
However, some purchasers do still prefer to have a survey carried out on a new build and this is entirely your own decision. This will enable you to identify any problems with the property before you purchase. We’d advise budgeting between £250 - £600.

Stamp duty

The amount of stamp duty you’ll pay is dependant on the value of the home you’re buying. The higher the value, the higher the stamp duty you can expect to pay.

If you’re a first time buyer and the value of the home you want is less than £300,000, you won’t need to pay any stamp duty.

If you’re a second stepper, you can expect to pay stamp duty on residential property purchases above £125,000. You can contact a solicitor, agent or conveyancer to calculate your stamp duty.

Solicitor's fees

You might hear the term ‘conveyancing’ when buying or selling your home, and this is where the solicitors come in. Your solicitor will act on your behalf and in your best interest when purchasing your new home, they will deal with all of the legal work that is involved with this transaction.

A conveyor will handle your contracts, give any legal advice, carry out local council searches, deal with the Land Registry and transfer the funds to pay for your new home.

Costs may vary, but you can expect to pay between £500 - £1,500 + VAT.

Electronic transfer fee

This fee pays for your mortgage provider to transfer the money to your solicitor.
It’s a good idea to budget between £30 - £50, and this payment is normally non-refundable.


Although its easily forgotten, home insurance is vital to budget for, as this is something your mortgage lender requires proof of prior to releasing the funds ahead of completion.  
We’d also recommend taking out contents insurance to cover any costs of repairing or replacing your household possessions.

Removal costs

Whether you’re moving from Mum and Dads, a rental property or your current home, you’ll need to transport everything to your new home! This usually costs anything between £300 - £2000.
If you want to do it for free, you can do it yourself! Hire a van, recruit a family member or friend to help, and jobs a good ‘un!



This is the exciting bit! Deciding on how you want to design your home is probably the part you’re looking forward to the most, so make sure you budget for any new furniture/interior you want.

We’d recommend starting your furniture search early; this way, you can budget the exact amount you’re going to spend.

Remember there may be additional costs along the way, so it’s important to be prepared when you’re at the beginning of your journey.
If you need any advice or guidance, our team are here to help, no matter what stage you’re at. Contact us here.