Second-hand homes offer excellent character, space and value, but it’s important to understand all the costs involved. Whether you choose a second-hand or new build property, buying a house comes with a list of fees.
Our comprehensive guide breaks down everything you need to budget for when purchasing a second-hand home. Read on to learn more.
What is a second-hand (resale) home?
A second-hand home, also known as a resale property, is a house or flat that has been previously owned and lived in. Unlike a new build property, which is sold for the first time typically straight after construction, a resale home has had at least one prior occupant.
What are the upfront costs to expect when buying a pre-owned home?
Here’s a breakdown of the upfront costs you should budget for when buying a house.
Deposit and mortgage fees
The largest upfront cost will likely be your deposit, typically ranging from 5-20% of the property’s value. While you can get mortgages with smaller deposits, larger deposits usually secure better interest rates, which may save you money over time.
You’ll also need to consider the following mortgage fees:
- Mortgage arrangement fees: The price your lender will charge to set up your mortgage.
- Mortgage broker fees: The fee charged by a broker for their services in helping choose your mortgage.
- Building and life insurance: Most lenders insist you have these to safeguard their loan.
Stamp Duty Land Tax (SDLT)
Stamp Duty Land Tax is a government tax you pay when purchasing a property above a certain threshold. The amount you’ll pay depends on several factors, including the price of your property and whether you’re a first time buyer.
As of 2025, first time buyers don’t pay Stamp Duty on homes up to £300,000, while other buyers start paying on properties over £125,000. For more information about current rates, read our Stamp Duty guide.
Valuation fees
A house valuation is a professional estimate of a property’s market value based on its location, condition and comparable sales. Your lender will likely organise a basic valuation to check that the property is worth what you’re paying and what they’re loaning to you. If your lender is not arranging one, it may give you peace of mind to organise your own.
Survey costs
A house survey is a detailed inspection of a property’s physical condition, which can give you valuable information about a property’s condition and highlight any major issues. They’re particularly important if you’re buying an older home.
Survey prices vary depending on the size of your property and the type of survey you choose. If you’re planning to purchase an older property, you might need to have specialist surveys for specific concerns like damp, which will cost more.
Read our guide to getting a house survey for more information.
Legal and conveyancing fees
You’ll need a qualified solicitor or licensed conveyancer to handle the legal aspects of your purchase. You may also need to factor in costs for the following:
- Property search fees to check for local issues like flooding or planning applications.
- Land Registry fees to register you as the new owner.
- Bank transfer fees for secure electronic money transfers on completion day.
- Leasehold extras, including additional costs if you’re buying a flat or leasehold property.
Are there any hidden costs when buying a house?
Buying a second-hand home can come with some additional fees, including the following:
Immediate repairs and renovations
Second-hand homes often need work before they’re ready to move into. Safety issues like faulty electrics or structural problems should be addressed immediately. Budget for potential roof repairs for leaks or missing tiles, plumbing updates for old pipes or fixtures and window or door maintenance for security and weatherproofing.
Damp problems are a common issue in older properties and require professional treatment to protect your health and the building’s structure. Don’t forget to factor in basic decorating costs to make rooms habitable, and potential garden cleanup if outdoor spaces have been neglected.
Outdated insulation or heating systems
Many second-hand homes have inefficient heating systems and outdated insulation. As a result, you may need to factor in the costs for the following:
- Installing central heating
- Replacing an old boiler
- Insulating the property
- Replacing single-glazed windows with double-glazed windows
Furniture and appliance replacement
The seller may not leave behind appliances, meaning you’ll need to budget for kitchen essentials like a cooker, washing machine, dishwasher or fridge. The property may also need new light fittings or flooring.
If you’re moving to a larger property, you’ll likely need to purchase additional furniture to fill the space. Don’t forget to factor in garden equipment like a lawnmower if you’re gaining a garden.
Council tax band differences
Your new home’s council tax band determines how much you’ll pay annually. The amount you pay depends on your property’s value and its location. Be aware that home improvements or extensions might push you into a higher tax band.
You’ll start paying council tax from when you move in, though discounts are available for students or disabled residents. Ensure the previous owner has paid all outstanding council tax to avoid inheriting their debt.
How do second-hand homes compare to new build homes?
When deciding between a second-hand home and a new build, it’s helpful to understand the key differences in costs and requirements.
Energy efficiency and ongoing utility bills
Energy performance is one of the key differences between second-hand and new build properties. Second-hand homes typically have lower energy ratings due to older insulation and heating systems, while new builds meet current efficiency standards with modern materials and smart technology.
As a result, you may save money on your energy bills with a new build property. You can upgrade older homes to improve efficiency, but this requires additional investment.
Explore our energy-efficient homes here.
Warranty and maintenance costs
New build homes come with comprehensive warranties covering major components, while second-hand homes are sold without warranty protection.
Our Barratt homes are covered by the NHBC warranty and insurance policy, which offers insolvency cover, a builder warranty period of 2 years and insurance cover for the following 8 years.
Costs of customisation and modernisation
Both property types offer renovation opportunities, but with different considerations. New build homes may have modification restrictions during the warranty period, while second-hand homes typically provide more flexibility for immediate changes.
However, older properties often need substantial work to meet modern standards and personal preferences, which may require significant investment.
Ready to become a homeowner? Explore our new homes across the UK, with fantastic offers to help you move.
Call or visit our Sales Advisers to start your homebuying journey today.
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