Valuations and surveys
A lender values every property it lends against, and on a high-value home that valuation is usually a more thorough piece of work. Some lenders send a senior or specialist valuer to do it, and you can expect the fee to be higher than a standard valuation.
It is worth paying for a full building survey on an expensive property too. Older homes, listed buildings, and houses with large grounds can hide expensive problems. A proper survey means you find them before you buy rather than in a repair bill after completion.
Stamp duty on high-value properties
Stamp duty land tax, the tax you pay to buy a property, climbs steeply at the top end. The highest band of 12% applies to the slice of the price above £1.5 million. On a £2 million home the total stamp duty bill can pass £150,000, so it deserves a firm place in your budget. Our guide to stamp duty sets out how the bands work.
If this is an additional property rather than your main home, a 5% surcharge sits on top of the standard rates. Your solicitor or financial adviser can work out the exact figure for your situation, including any reliefs you might qualify for.
Insurance for high-value homes
A standard home insurance policy may not stretch to cover an expensive property properly. High-value home insurance tends to offer higher rebuild limits, cover for fine art and antiques, and extras such as alternative accommodation if your home becomes uninhabitable.
Your lender will make buildings insurance a condition of the mortgage, and it may set a minimum level of cover you have to hold. Get specialist quotes early so the cost is in your budget from the start rather than a surprise near completion.