Decide who will own the property, obtain an initial mortgage view, estimate purchase tax, inspect the lease and condition, and keep cash aside for both completion and early repairs. Changing the ownership structure later can create another tax charge.
One-off purchase costs
| Cost | What it may include | What to check |
|---|---|---|
| Property transaction tax | SDLT in England and Northern Ireland, LBTT in Scotland or LTT in Wales | Additional-property, company and non-resident rules; use the relevant government calculator |
| Conveyancing | Solicitor, searches, Land Registry, bank transfer and identity checks | Leasehold, company or overseas-buyer supplements and whether disbursements are included |
| Survey and valuation | Lender valuation, home survey or building survey | A lender valuation protects the lender; it is not a detailed condition survey |
| Mortgage | Arrangement/product, broker, valuation and legal fees | Whether fees are paid now or added to the loan, plus early repayment charges |
| Initial works | Safety, decoration, furniture, appliances and refurbishment | Quotes, contingency and whether the property can legally be occupied during works |
| Insurance and compliance | Buildings/landlord cover, certificates, licences and alarms | What the lease or lender requires and what a service charge already covers |
Survey: do not rely only on the lender valuation
A valuation answers whether the property supports the loan. A survey can identify defects and likely repairs. Older, altered or visibly damaged properties may justify a more detailed building survey and specialist checks for damp, roof, structure, electrics, drainage or invasive materials. Use the findings to renegotiate, plan works or walk away.
A practical purchase sequence
- Set the total cash budget and contingency—not just the maximum price.
- Choose personal or company ownership with tax and legal advice before the offer.
- Obtain an agreement in principle or specialist mortgage review.
- Offer subject to finance, survey and satisfactory legal due diligence.
- Instruct an independent conveyancer and an appropriate surveyor.
- Check title, searches, lease, service-charge accounts, major works, licences and tenancy restrictions.
- Finalise finance, insurance and source-of-funds evidence before exchange.
- Do not exchange until risks, completion funds and any works plan are clear.
- After completion, meet registration, safety, deposit-protection, licensing and tax obligations before letting.
Extra issues for international buyers
- Expect enhanced identity, address, source-of-funds and source-of-wealth evidence; certified translations may be needed.
- Consider sterling exchange-rate risk and transfer timing, not only the property price.
- Confirm whether the lender accepts your country of residence, income currency and ownership vehicle.
- Appoint a UK solicitor familiar with overseas clients and arrange signing, certified documents or power of attorney early.
- Budget for the England/Northern Ireland non-resident SDLT surcharge where applicable and understand the Non-resident Landlord Scheme.
- Arrange local management, emergency repairs, insurance and tax filing rather than assuming they can be handled remotely without cost.
A cost can be real cash out even if it is not immediately deductible from rental income. Some expenditure may instead form part of the capital-gains calculation, and some may not qualify. Ask an adviser how each material item should be recorded.
Useful official guidance
- MoneyHelper: buying and moving costs
- GOV.UK: Stamp Duty Land Tax
- GOV.UK: renting out a property
- RICS consumer guide to surveys
Rules differ across the UK and by buyer. Confirm live rates and requirements before exchange.