The total cost of buying in prime London
Every cost attached to a £2m purchase, worked line by line — with the figures fixed by law kept separate from the ones you have to go out and get quoted.
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What a £2m prime London purchase actually costs
On a £2,000,000 purchase, Stamp Duty Land Tax alone ranges from £153,750 to £293,750 depending on the buyer. Everything else — legal work, searches, survey, lender fees, leasehold notice fees — is quoted rather than published, and adds a further sum that depends entirely on the property and the professionals you appoint.
That split matters more than any single number. Statutory costs can be checked against HMRC today and are the same for everyone in the same position. Quoted costs have no meaningful average: a fixed-fee online conveyancer and a prime central London firm doing full leasehold enquiries are not doing the same job, and the difference is not padding. So this worksheet gives you the statutory figures precisely, and gives you the questions to ask for everything else.
Figures are current as at August 2026. Rates change, sometimes mid-transaction, so check the sources at the foot of this page before you rely on any of it.
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1. Stamp Duty Land Tax — statutory
SDLT is the largest single cost after the price. The same £2,000,000 flat produces four very different bills depending on the buyer’s residence position and what else they own — anywhere in the world.
| Buyer profile | SDLT on £2,000,000 | Why |
|---|---|---|
| UK resident, replacing a main home | £153,750 | Standard residential bands only. This is the floor, not the norm. |
| UK resident, additional dwelling | £253,750 | Higher rates for additional dwellings add 5% of the whole price. Property owned outside the UK counts. |
| Non-UK resident, main home | £193,750 | The non-resident surcharge adds 2% of the whole price, including the nil-rate band. |
| Non-UK resident, additional dwelling | £293,750 | Both surcharges apply — 7% of the whole price on top of the bands. |
These figures are computed from the rates in force, not typed in by hand. A company buying a dwelling over £500,000 is normally charged a flat higher rate instead of the bands unless a relief applies, and then pays ATED annually — model that before you offer, not after.
2. Transaction costs — quoted, get them in writing
None of the costs below has a published rate. We are not going to invent an average for them, because the number that matters is the one on your quote. Ask for each in writing, and ask what is excluded.
| Cost | What to expect and what to ask |
|---|---|
| Legal fees | Varies by firm and by complexity. Ask for a fixed quote that explicitly covers leasehold enquiries, and check whether new-build, company purchase or overseas funds carry a supplement. |
| Searches | Varies by borough. Local authority, drainage and environmental searches are passed through at cost by your solicitor; chancel and mining searches are added where relevant. |
| Survey | Varies with size and scope. A RICS Level 3 building survey costs materially more than a Level 2 homebuyer report and is usually the right choice on a period conversion. |
| Land Registry registration fee | Set by statutory scale according to price, and reduced for applications lodged electronically. Your solicitor will state it on the completion statement. |
| Lender valuation | Varies. Sometimes included in the mortgage product, sometimes charged separately, and a private bank may instruct its own valuer at your cost. |
| Lender arrangement fee | Varies. A flat fee is common on high-street products; private-bank lending more often charges a percentage of the loan, which at prime London loan sizes is the larger number. |
| Same-day bank transfer (CHAPS) | Varies. A small per-transfer charge, and a typical completion involves one or two transfers. |
| Buying agent fee | We charge the buyer, never the seller, and we take no referral fees. Our fee schedule is being published; until it is, ask and we will give you the number in writing before you engage us. |
Add VAT at the prevailing rate to professional fees. Disbursements your solicitor pays on your behalf are passed through and shown separately on the completion statement.
3. Leasehold-only costs
Most prime London flats are leasehold, and the lease creates costs that simply do not exist on a freehold purchase. The amounts are set by the lease and by the landlord, so they are property-specific — but they are knowable before you exchange, and your solicitor can obtain them from the management pack.
- Notice of transfer and notice of charge — paid to the landlord or managing agent on completion, at the rate the lease specifies.
- Deed of covenant and certificate of compliance, where the lease or a restriction on the title requires them.
- Licence to alter, if you intend works — and a retrospective one if the seller carried out unlicensed works.
- Service charge apportionment at completion, plus any retention your solicitor negotiates against accounts that have not been finalised.
- Reserve or sinking fund contribution where the lease provides for one, and any balancing charge arising from the last certified year.
- Management pack fee, charged by the managing agent for the information your solicitor needs.
4. Ongoing annual costs
The purchase costs are one-off. These are the ones you carry for as long as you own the property, and on a prime London flat they are usually larger than buyers expect.
- Service charge — varies enormously. A serviced block with a pool, gym and 24-hour concierge is a different order of cost from a converted townhouse. Ask for three years of accounts and the current budget, not a headline figure, and compare budget against actual.
- Ground rent — varies. Leases granted after 30 June 2022 are limited to a peppercorn under the Leasehold Reform (Ground Rent) Act 2022; older leases are whatever they say, including escalating and doubling clauses that can make a flat difficult to mortgage.
- Buildings insurance, usually arranged by the landlord and recharged through the service charge.
- Council tax, at the band for the property and the borough.
- Utilities, including standing charges that continue when the flat is empty.
- Letting costs if you intend to let — management fees, compliance certificates, and tax on the rental income.
ATED — if the property is held by a company
The Annual Tax on Enveloped Dwellings for the £2,000,001 – £5,000,000 band is £32,200 for the 2026-27 chargeable period.
ATED is charged annually on residential property held by a company or other non-natural person, and a return is due whether or not tax is payable. Reliefs exist — for genuine property rental businesses, among others — but they have to be claimed on time and they do not survive occupation by a connected person.
ATED sits on top of the flat higher SDLT rate that usually applies to a company purchase above £500,000. That combination is why a corporate wrapper needs to be modelled rather than assumed, and why the modelling should happen before you offer.
Your Questions Answered
Questions buyers ask
How much should I budget on top of the purchase price?
There is no honest single percentage, because SDLT alone swings from £153,750 to £293,750 on a £2m purchase depending on your position. Work out your SDLT figure first — it dominates everything else — then add quoted costs for legal work, searches, survey and lender fees, and for a leasehold flat the notice fees and service charge apportionment.
Why do you not publish average legal or survey fees?
Because the average would be misleading. A fixed-fee volume conveyancer and a prime central London firm running full leasehold enquiries on a period building are doing different work, and quoting a midpoint between them would tell you nothing about what your transaction costs. Get written quotes from two or three firms and compare what is included.
Does the non-resident SDLT surcharge depend on my nationality?
No. It turns on a day-count test specific to SDLT, based on time spent in the UK around the transaction date. It is not the Statutory Residence Test used for income tax, and holding a British passport does not settle it. If you meet the UK presence requirement in the period after completion, the surcharge can be reclaimed — but you have to make the claim.
Is buying through a company cheaper?
Often it is more expensive on acquisition and to hold. A company buying a dwelling over £500,000 is normally charged a flat higher SDLT rate rather than the bands, and then pays ATED every year unless a relief applies. There are situations where a corporate structure is still the right answer, usually for reasons other than SDLT. It needs modelling with a tax adviser before you offer.
What is the single most expensive surprise?
A section 20 major-works consultation on a leasehold block. Routine service charge is predictable; a five-figure contribution towards a roof, lift or facade is not, and it is discoverable before exchange from the management pack and the reserve fund position.
Free worksheet
Get this as a printable worksheet by email
One email with the full cost-of-buying worksheet, laid out so you can print it and work through a real purchase line by line.
Sources
Every statutory figure on this page is taken from the following, and the SDLT amounts are computed from the rates in force rather than transcribed.
- HMRC — Stamp Duty Land Tax: residential property rates
- HMRC — Rates of SDLT for non-UK residents
- HMRC — Annual Tax on Enveloped Dwellings (ATED)
- HM Land Registry — Registration Services fees (Scale 1)
- Leasehold Reform (Ground Rent) Act 2022
Before you rely on this
Figures are current as at August 2026. Tax rates and thresholds change, sometimes with immediate effect and sometimes mid-transaction. Check the sources above, and confirm the position on the day you exchange.
This is general information, not tax or legal advice. We are buying agents, not tax advisers or solicitors, and your position depends on facts we do not have. Take advice on your own circumstances before you commit.
Next steps
Related reading
SDLT for overseas buyers
The surcharges, the residence test, and the refund windows.
ATED and company ownership
When a corporate wrapper works, and what it costs to hold.
UK property ownership structures
Personal, company, trust — and the trade-offs of each.
Guide for international buyers
The full purchase process from abroad, end to end.
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