Buying a Second Home: Step by Step, With Example Costs

Buying a second home follows the same legal steps as buying the home you live in. Three things change: the kind of mortgage you need, the Stamp Duty you pay, and the tax due when you sell. In England, a second home usually pays Stamp Duty at the higher rates, which add 5% to every band.

This guide covers a holiday home, a home for family, a base near work, or a house to let. Figures checked 20 October 2026.

Second home or buy-to-let: why it matters

Decide early whether you will live in the property part of the time or let it out. It affects the mortgage, our fee and the tax.

• The mortgage. A residential mortgage on a second home and a buy-to-let mortgage have different lending rules. Most residential mortgages do not allow letting without the lender's consent. We are not mortgage brokers, so speak to a broker or lender about which product fits.
• Our fee. If you are buying to let, the Buy to Let line (£100 + VAT, or £150 + VAT on a new build) is added to our fee.
• The tax. Rental income is taxed, and selling a home you have not lived in can mean Capital Gains Tax. Ask an accountant before you buy.

If you plan to buy through a company, our guide to buying property through a limited company explains what changes.

Step by step

1. Agree your finance. Get a mortgage agreement in principle, or show proof of funds if you are buying without a mortgage.
2. Make an offer. Once it is accepted, the estate agent sends a memorandum of sale to both solicitors.
3. Instruct a solicitor. We check your identity and where the money is coming from, then ask the seller's solicitor for the contract pack.
4. Searches and enquiries. We order the local authority, water and drainage and environmental searches, check the title, and raise questions about anything unclear.
5. Mortgage offer. Your lender values the property and issues the offer. We check its conditions and report to you.
6. Exchange of contracts. You sign, pay the deposit, and the completion date is fixed. From here both sides are committed.
7. Completion. We send the money, you get the keys, and we pay the Stamp Duty and register you as the owner.

The Stamp Duty return has to reach HMRC within 14 days of completion. We file it as part of the purchase.

Example costs on a £300,000 home

A freehold home in England for £300,000, bought by one person with a residential mortgage, who will still own their main home after completion.

Paid to us:

• Our legal fee: £1,010 + VAT, so £1,212 including VAT
• Typical disbursements: £319 for one buyer, including VAT where it applies (searches, identity checks and Land Registry searches; search fees vary by council)

Not included: a survey, indemnity premiums, freeholder or managing-agent charges, or lender charges.

Paid to government, separately:

• Stamp Duty Land Tax at the higher rates: £20,000
• HM Land Registry fee: £150

At the standard rates, the Stamp Duty on the same home would be £5,000. The extra £15,000 is the higher-rates surcharge.

Buying a leasehold flat costs more in legal fees, and buying to let adds the Buy to Let line. Our conveyancing cost calculator shows the figure for your price, and our guide to solicitor fees for buying a house explains each line.

The higher Stamp Duty rates

You usually pay the higher rates if the price is £40,000 or more and, at the end of the day of completion, you own another home anywhere in the world. Each band carries 5% more than the standard rate:

• Up to £125,000: 5%
• £125,001 to £250,000: 7%
• £250,001 to £925,000: 10%
• £925,001 to £1.5 million: 15%
• Above £1.5 million: 17%

Buyers who are not UK resident usually pay a further 2% surcharge. Our second home Stamp Duty calculator works out the figure for your price, and our guide to Stamp Duty rates and reliefs has more examples.

Getting the extra back

If you buy a new main home before you have sold your old one, you pay the higher rates at first. If you then sell or give away the old main home within three years, you can usually claim the extra back from HMRC. The claim has to be made within 12 months of the sale of the old home, or within 12 months of the filing date of the Stamp Duty return, whichever is later.

This refund only applies when the new property replaces your main home. It does not apply to a holiday home or a buy-to-let that sits alongside the home you live in.

This is general information about Stamp Duty, not tax advice. The rules have conditions that depend on your circumstances, so check them with HMRC or an accountant.

Other costs to plan for

• Council tax. Since 1 April 2025, councils in England can charge up to double the normal council tax on a furnished home that nobody lives in as their main home. Each council decides whether to charge it, so check with the council for the area.
• Running costs. Insurance, maintenance, and, on a leasehold flat, the service charge and ground rent.
• Tax when you sell. Capital Gains Tax may be due on a home that has not been your main home. If it is, you report and pay it within 60 days of completing the sale.

How long it takes

A freehold purchase typically takes 8 to 10 weeks from instruction to completion, and a leasehold one 10 to 12 weeks. With our fast-track service, a freehold purchase typically takes 6 to 8 weeks and a leasehold one 8 to 10 weeks, for £500 + VAT paid on completion. If we miss the fast-track timescale, you do not pay the fast-track fee, unless the delay is outside our control (for example caused by the other side, the lender or the chain). Timescales depend on the chain, the searches and your lender.

If the purchase falls through

You pay the File Opening Fee (Non-refundable) and any disbursements we have already paid out on your behalf. The rest is refunded, or carried over to your next property when you find one.

Questions people ask

What are the hidden costs of buying a second home?

The largest is usually the higher-rate Stamp Duty. After that come the legal fee and disbursements, the survey, mortgage fees, furniture, insurance and the council tax premium where your council charges one. Our guide to the hidden costs of buying a house goes through each one.

What are the rules on buying a second home?

There is no legal limit on how many homes you can own. The rules that matter are your lender's (whether you can let the property), the Stamp Duty higher rates, the council tax rules for the area, and the tax rules when you let or sell.

Can I get the higher rates back?

Only if the new home replaces your main home and you sell or give away the old one within three years. You then claim the extra from HMRC within the time limit above. A holiday home or a buy-to-let bought alongside your main home does not qualify.

Can I buy a second home without selling the first?

Yes. You pay the higher rates on the second purchase, and your lender looks at whether you can afford both mortgages. If the new home will be your main home and you sell the old one within three years, you can usually claim the extra Stamp Duty back.

Is it worth owning a second home?

That depends on your finances, how you will use it and the tax position. We cannot advise on that. A financial adviser or accountant can.

Get your figure

Our conveyancing cost calculator shows our fees, the disbursements and the government charges for your price. For an exact, itemised figure, get a quote for your purchase. Our buying a house page explains how we handle a purchase, and if you are buying to let, our buy-to-let conveyancing page covers what changes.

Sources

Our fees: our fee scale, checked 20 October 2026. Published ranges: our fees page.

Stamp Duty rates: gov.uk/stamp-duty-land-tax/residential-property-rates

Higher rates and the refund rule: gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property

Council tax on second homes: gov.uk/council-tax/second-homes-and-empty-properties

Capital Gains Tax on a property sale: gov.uk/tax-sell-property

This is general information about buying a second home in England, not advice on your purchase, your mortgage or your tax. Our fees are for a standard transaction, and your written quote confirms the exact figure. Tax rates and government fees change; check the figures that apply on the day you complete.