Planning a house purchase is an exciting time, from choosing the right location to finding the perfect property that suits your household. Having a clear budget from the outset helps you make those decisions with confidence and understand what is involved at each stage.
Alongside your deposit, there are a few other expenses to allow for when buying a new build home in England. The amount will depend on the property, your mortgage arrangements and whether you have an existing home to sell. This guide explains the main considerations, with practical advice to help you prepare.
What costs should you budget for beyond your deposit?
Alongside your deposit, the main costs are usually legal fees, any Stamp Duty due, mortgage fees and the move itself. You may also choose to set aside money for furnishings.
These expenses arise at different stages of the purchase. Asking for quotes early and keeping a simple record of what is payable, and when, will help you plan without having to account for everything at once.
How much deposit do you need to buy a new build home?
Your deposit is the portion of the purchase price you fund yourself, with a mortgage covering the balance if you are borrowing. The amount you need will depend on the property and the mortgage products available to you.
For example, a 10% deposit on a £400,000 home would be £40,000. If you already own a property, equity from its sale may provide some or all of your deposit.
A mortgage adviser can help you understand your options, including how different deposit amounts affect the mortgages available, the rates you will have access to and your monthly repayments. Seeking financial advice before you begin viewing homes can help you feel more confident about your budget and what you can comfortably afford.
If you're unsure where to start, Elivia Homes can put you in touch with trusted Independent Financial Advisers who have experience in new build purchases and will be happy to talk you through your options, answer any questions and help you take the next step with confidence.
Is a reservation fee an additional cost?
A reservation fee is normally paid when you have chosen your new build home. The fee reserves your plot and stops it from being marketed to other buyers. Your reservation agreement will explain the amount, the reservation period and how the payment is treated.
At Elivia Homes, the reservation fee is then deducted from the purchase price. You will need to have the money available at reservation but should avoid counting it again as an additional purchase cost.
Your Sales Consultant can talk you through the agreement details before you sign.
Do you pay Stamp Duty on a new build home?
Yes, Stamp Duty Land Tax applies to new build homes in England in the same way as other residential properties. Whether you need to pay it, and how much, depends on the purchase price and your circumstances.
Eligible first-time buyers currently pay no Stamp Duty on the first £300,000 of a home costing up to £500,000, and 5% on the portion between £300,000 and £500,000. First-time buyer relief is not available if the purchase price exceeds £500,000.
For other buyers, standard residential rates begin on the portion above £125,000, although higher rates can apply, including when buying an additional property.
The government’s Stamp Duty calculator is a useful starting point. Your solicitor or conveyancer can confirm the amount payable for your purchase and explain how payment will be arranged.
What do legal and mortgage fees cover?
Your solicitor or licensed conveyancer carries out the legal work needed to buy your home. This includes reviewing the contract, arranging searches, handling the transfer of funds and registering your ownership.
When comparing quotes, ask for an itemised breakdown showing VAT and any additional charges, including searches, Land Registry fees and bank transfers. This makes it easier to compare the total cost.
Depending on your mortgage, there may also be a product or arrangement fee, a valuation charge or a fee for mortgage advice. Some products include certain fees, so ask your adviser to explain the overall cost alongside the interest rate and monthly repayments.
You may also wish to budget for an independent survey of your new home. This is separate from your lender’s mortgage valuation. Costs vary depending on the property and the type of inspection, so ask for quotes and check what is included.
If you are moving from an existing home, check with your lender whether you can transfer your current mortgage to the new property and whether any early repayment or exit charges would apply.
If you have a home to sell, you will also need to budget for estate agent fees and the legal costs of the sale. Your conveyancer can provide a quote covering both your sale and purchase.
What should you allow for moving in?
The cost of moving will depend on how much you have to transport, the distance involved and whether you use a removal company or hire a van. Getting quotes in advance will help you decide which option suits your budget. If you need packing or storage, ask for these to be included.
It is also worth checking the room sizes of your chosen home before budgeting for furnishings. You do not need to furnish every room immediately. Prioritising the essentials can give you time to settle in and see how you use the space before making further choices.
Remember to arrange appropriate buildings and contents insurance, checking when cover needs to begin and whether your belongings are protected during the move.
How can Elivia Homes help with your move?
Elivia Homes offers a range of schemes on selected homes that may help with the costs and practicalities of moving.
With Stamp Duty Paid, Elivia Homes may contribute towards or cover your Stamp Duty bill on eligible homes, reducing the amount you need to budget for upfront.
For buyers with a property to sell, Smooth Move provides support with the selling process and a contribution towards agreed estate agent fees. A Part Exchange service, arranged through trusted partners, may also be available, providing an alternative to selling your existing home on the open market, giving you a guaranteed buyer for your home enabling you to move confidently and quickly.
The Sales Consultant at your chosen development can explain the options available, what each scheme includes and the relevant eligibility requirements. Offers apply to selected homes and are subject to individual terms and conditions; they may not be available in combination.
Where should you start when planning your budget?
Start with your available deposit and a conversation with a mortgage adviser, then gather quotes for the legal work and your move. Your Sales Consultant can explain the home’s specification, reservation arrangements and any available incentives, helping you bring the different parts of your budget together.
With those details in place, you can focus on choosing a home that suits your needs and planning your move.
Explore Elivia Homes’ developments at https://www.eliviahomes.co.uk/developments or visit one of our developments to find out more about buying your new home.
Your Budget Checklist
☐ Deposit – including any equity from the sale of your current home.
☐ Reservation fee – payable upfront and deducted from the purchase price at Elivia Homes.
☐ Stamp Duty – if payable, depending on the purchase price and your circumstances.
☐ Legal fees for your purchase – including searches, Land Registry fees and bank transfer charges.
☐ Mortgage fees – any product or arrangement fee, valuation charge and mortgage adviser fee.
☐ Independent home survey – if required.
☐ Existing mortgage charges – any early repayment or exit fees.
☐ Selling costs – estate agent fees and legal fees if you have a home to sell.
☐ Moving costs – removals or van hire, plus packing and storage if needed.
☐ Furnishings – any furniture and other essentials for your new home.
☐ Insurance – buildings and contents cover, including protection for belongings during the move.
