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We have created some helpful guides to ensure that buying your new Tilia home is as simple as possible.

With more than 70 years’ experience, Tilia Homes proudly builds quality new-build homes and communities across the country.

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What other home buying fees will I need to pay?

Becoming a first-time homeowner is an exciting milestone, but it comes with significant financial considerations. This guide outlines some of the additional fees associated with buying a new home.

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Guide for first time buyers

What other fees will I need to pay?

Consider the following first-time buyer fees to help plan your budget effectively:

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1. Stamp duty

What is Stamp Duty?

Stamp Duty is a tax you must pay when you buy a house or land above a certain price in England.

How much is Stamp Duty?

The amount of stamp duty you pay depends on the cost of the property or land. The current stamp duty thresholds are:

  • 0%: £0 – £250,000 (£425,000 for first time buyers)
  • 5%: £250,000 – £925,000
  • 10% £925,000 – £1,500,000
  • 12% £1,500,000+

Discounted stamp duty for first-time buyers now extends to properties valued up to £625,000, previously capped at £500,000.

However, if you are buying a second home with a value exceeding £400,000, be aware of an additional 3% stamp duty obligation. This surcharge is applicable to second homes, buy to let properties, and holiday homes.

When do you pay Stamp Duty?

Stamp Duty must be paid within 14 days of completion in England to avoid fines and additional interest charges.

2. Mortgage fees

When securing a mortgage from a lender, you may have to pay additional fees, including:

  • Arrangement fees – which represent the lender’s costs for setting up the mortgage. These can vary from being entirely free to reaching several thousand pounds.
  • Booking fees – some lenders may impose a fee for the initial meeting and mortgage application process, this is typically around £100.
  • Administration costs – additional charges may apply for the time and effort spent lenders spend organising and finalising the details of your mortgage once it’s been approved.

3. Surveyor fees

You might want to have a surveyor examine the property to identify any issues before the deal closes. The cost for these can vary from £250 to over £1,000, depending on the report’s detail.

4. Solicitor fees

Hiring a lawyer for legal matters and searches during the new home buying process can cost between £500 to £1,500, while searches can be upwards of a few hundred pounds.

5. Money transfer fees

Banks or lenders may charge fees for transferring big sums of money between accounts.

6. Insurances

Building insurance is crucial for protecting you against issues like subsidence, structural problems, flooding and fires. Contents insurance and life insurance may also be required by lenders.

Insurance costs will be subject to a range of criteria, including your personal health, circumstances, and property location.

7. Removals

If you plan to furnish your new home with existing furniture and white goods, then you’ll need to think about paying for removals ahead of your completion date. The cost of this is dependent on the quantity and distance.

8. Other taxes

Contact your local Council to determine the tax band for your new house and how much ongoing payments will be.

9. Other on going living costs

As well as utility bills and food and leisure expenses, all homes require maintenance and upkeep. When you're calculating your potential home buying costs, try to include a few hundred pounds a month for this.

Buying a new home involves careful consideration of various costs. Research and consultation with experts, along with reading our informative guides, will prepare you for this exciting journey ahead.

And if purchasing from our quality new build developments, our expert sales teams will discuss these costs with you, ensuring a smooth and transparent experience with no surprises.