Property Purchase Costs
The purchase price is only the start. Buying a buy-to-let property involves a cascade of additional costs: SDLT, solicitor fees, mortgage arrangement fee, survey, and possibly refurbishment. Failing to account for these can erode cash returns significantly. This calculator brings all purchase costs together into a single total — helping you understand the true initial outlay and accurately calculate your cash-on-cash return.
Why this matters
On a £250,000 buy-to-let, total purchase costs including the 3% SDLT surcharge, solicitor fees, survey, and mortgage arrangement can easily reach £15,000–£20,000. This dramatically affects your true yield on invested capital.
Key points
- SDLT is typically the largest additional cost — up to 15% on high-value additional properties
- Solicitor fees typically range £800–£2,000 for a straightforward purchase
- Survey costs range from £300 (mortgage valuation) to £1,500+ (full structural survey)
- Mortgage arrangement fees range from £0 to £2,000+ — some add to the loan
- Refurbishment and furnishing costs should be included if incurred before first let
- The total purchase cost is used as the denominator in cash-on-cash return calculations
Frequently asked questions
What solicitor fees should I budget for a buy-to-let purchase?
Solicitor (conveyancing) fees typically range from £800 to £2,000 for a standard purchase, plus disbursements (searches, Land Registry fees). Complex transactions, new builds, or leasehold properties cost more. Get three quotes and check what is included.
Is a full structural survey worth it for a buy-to-let?
For older or unusual properties, a HomeBuyer Report (£400–£800) or Full Structural Survey (£800–£1,500) is strongly recommended. Issues discovered post-purchase become the buyer's problem. The survey often pays for itself by identifying negotiating points.
Can I add mortgage arrangement fees to the loan?
Yes — most lenders allow the arrangement fee to be added to the mortgage. However, this means paying interest on the fee for the life of the mortgage. On a £1,500 fee over 25 years at 4%, you pay approximately £2,600 total.
What other costs might I have missed?
Common overlooked costs include: buildings insurance (required from exchange), landlord licence fees (in selective licensing areas), energy performance certificate (EPC) if not in place, safety inspections (EICR, gas safety, PAT testing), and furniture/appliances for furnished properties.