What costs are involved in buying a house and how much?

[Dannythedragon]

We are considering buying a property in the UK to let out and are wondering what costs are involved. So far I know of stamp duty which AFAIK is 1% and arrangement fee for mortage 1000 - 2000 pounds. Also survey to be done - how much? and solicitors fees - how much? What other costs are involved and approx how much would they be?

Thanks

Stamp duty depends on the price of the property: up to £125k its 0%, up to £250k its 1%, up to £500k its 3%. 4% for 500k-1mil (a very expensive buy to let!) and then 5% for above 1mil.

Cost of survey will depend on whether you simply get a basic survey required by the mortgage lender, or you go for full structural survey (can be up to £1000).

the 4homes website has lots of info on costs of buying and regulations for buy to let landlords. definitely worth a look - www.channel4.com/4homes/buy-sell/buying-property/buy-to-let

are you aware of the capital gains tax on selling? if you aren't using this as your residence, you will be liable for CGT on the profit you make on a sale.

survey - depends what you are buying. a flat or a house? if a house, you will need a full structural survey. talk to your mortgage lender, as usually they only do a more limited survey which you have to pay for. the surveyors might be willing for you to pay them the difference direct and do the full survey you want.