The True Cost of Buying a Home in Scotland: Hidden Fees Explained

★ Key Takeaways

• Budget 3-5% of the purchase price for buying costs on top of your deposit – this doesn't include your mortgage deposit
• First-time buyers in Scotland pay 0% LBTT on properties up to £175,000, saving up to £600 compared to standard rates
• Home Reports are provided by sellers in Scotland – saving you £400-600 on upfront survey costs
• Solicitor fees (£850-1,500) and legal searches (£250-300) are unavoidable but essential for protecting your purchase
• Buying a second property? The Additional Dwelling Supplement adds 8% to your LBTT bill (increased December 2024)

When you're saving for your first home in Scotland, it's easy to focus solely on the deposit. But the purchase price and deposit are just part of the story. From Land and Buildings Transaction Tax (LBTT) to solicitor fees, mortgage costs to moving day expenses, the hidden costs of buying can add thousands to your budget.

In this comprehensive guide, I'll walk you through every cost you need to plan for when buying a home in Scotland, with real figures and a worked example for a £250,000 property. If you're a first-time buyer, it's especially important to budget for these expenses alongside your deposit. Understanding these costs upfront means no nasty surprises – and ensures you're truly ready to complete your purchase.

Scotland has its own property tax system – Land and Buildings Transaction Tax – which replaced Stamp Duty in 2015. LBTT works on a tiered basis, meaning you only pay the higher rate on the portion of the price within each band.

Current LBTT Rates (2026)

First-Time Buyer LBTT Relief

Great news for first-time buyers: you pay 0% LBTT on the first £175,000 of your purchase – that's £30,000 more than the standard threshold. This government scheme saves first-time buyers up to £600 compared to standard rates.

Additional Dwelling Supplement (ADS)

Buying a second property or buy-to-let? Since December 2024, the Additional Dwelling Supplement has increased to 8% of the total purchase price (up from 6%). On a £250,000 property, that's an extra £20,000 on top of standard LBTT – a significant cost to factor in.

In Scotland, you need a solicitor from the very start of the buying process. Unlike England, Scottish solicitors handle the offer and negotiation process, not estate agents.

• Solicitor fees: £850 - £1,500 for a standard purchase, rising to £2,000+ for complex transactions
• Legal searches: £250 - £300 for property searches, title checks, and local authority enquiries

These costs are non-negotiable – your solicitor handles everything from examining the title deeds to concluding missives (the legally binding contracts) and registering your ownership. Always get a full quote upfront, including VAT and disbursements.

Need Help Budgeting for Your Home Purchase?

Marc can walk you through all the costs and help you plan your budget.

Scotland's Home Report system means buyers get crucial property information upfront – and free of charge. Sellers are legally required to provide a Home Report before marketing, which includes a single survey, energy report, and property questionnaire.

• Home Report: Free to buyers (seller pays £400-600)
• Additional survey (optional): £500 - £1,500 for a more detailed structural survey
• Mortgage valuation: £150 - £1,500 (often free with certain mortgage products)

While the Home Report covers essential information, you may want a more detailed survey for older properties or if the Home Report flags potential issues. Your lender will also require their own valuation – though many fee-free mortgage products include this.

Your mortgage comes with its own set of costs beyond just the monthly payments. These vary significantly between lenders and products:

• Arrangement fee: £0 - £2,000 (can often be added to mortgage, but you'll pay interest on it)
• Valuation fee: £150 - £1,500 (often free on certain products)
• Booking fee: £0 - £250 (less common now)

Working with a mortgage broker helps you compare total costs, not just interest rates. Sometimes a slightly higher rate with no fees works out cheaper than a low rate with a £1,999 arrangement fee.

Once you've bought your home, there are still costs to factor in:

• Buildings insurance: £20 - £40/month (mandatory from exchange/completion – your lender requires it)
• Professional removal company: £300 - £1,200 depending on distance and volume
• Factoring fees (flats): £50 - £200/month for common area maintenance and building management

If you're buying a flat, check the factoring arrangements carefully. Monthly fees can vary dramatically, and you may also be liable for a share of major repairs or common works. For a detailed look at relocation expenses, see our guide on the cost of moving house in Scotland.

Here's a comprehensive overview of all the costs you should budget for:

Let's put this into practice with a real example. Here's what a first-time buyer might pay when purchasing a £250,000 flat in Edinburgh:

That's approximately 1.6% of the purchase price – well within the 3-5% rule of thumb. Remember, this is on top of your deposit (typically 5-20% of the price). Use our mortgage affordability guide to work out your total budget.

Here's how to keep your buying costs to a minimum:

• Choose fee-free mortgage products – Sometimes a slightly higher rate with no fees works out cheaper overall
• Get multiple solicitor quotes – Fees can vary by £500+ between firms for the same work
• Buy below £175,000 if possible – First-time buyers pay zero LBTT on properties under this threshold
• Compare buildings insurance – Don't just accept your lender's quote; comparison sites often find better deals
• Consider mid-week moves – Removal companies often charge less Monday to Thursday

How much should I budget for buying costs in Scotland?

A good rule of thumb is to budget 3-5% of the purchase price for buying costs, excluding your deposit. For a £200,000 property, that means having £6,000-10,000 set aside on top of your deposit. First-time buyers at the lower end of the market may find costs closer to 2-3%.

Do I need to pay for a survey in Scotland?

No – in Scotland, the seller is legally required to provide a Home Report before marketing the property. This includes a single survey, energy performance certificate, and property questionnaire. However, you may choose to commission a more detailed structural survey (£500-1,500) for older properties or if the Home Report flags concerns.

When do I pay LBTT in Scotland?

LBTT must be paid within 30 days of the effective date of the transaction (usually the completion/settlement date). Your solicitor will typically handle this for you as part of the conveyancing process, using funds from the purchase to pay Revenue Scotland directly.

What are factoring fees and do I have to pay them?

Factoring fees are monthly charges paid by flat owners to cover the cost of maintaining common areas (stairwells, gardens, roof) and building management. They typically range from £50-200 per month and are mandatory for most flats. Always check factoring costs before making an offer – they can significantly affect affordability.

Understanding all the costs of buying a home is essential for planning your budget – but everyone's situation is different. The right mortgage product, solicitor, and timing can make a real difference to your total costs.

At McGhie Mortgages, I help buyers across Edinburgh, the Lothians, and all of Scotland understand exactly what they'll need to budget. From finding fee-free mortgage products to explaining every cost you'll face, I'll make sure there are no surprises.

Ready to plan your home purchase budget? Book a free, no-obligation consultation and let's work out exactly what you need.