Landlord Costs & Fee's - Buy to let | NatWest

Buy to let - other costs to consider

There are a number of different costs you’ll need to factor into your plans when you’re looking to buy an investment property, here are a few to get you started:

Stamp Duty

Likely to be the biggest expense you’ll need to pay other than your deposit. Stamp Duty is a tax you have to pay if you buy a property or land worth £125,000 or more. The amount you need to pay depends on the purchase price of the house. If you're buying a property or land in Scotland, you will have to pay LBTT rather than Stamp Duty.

From 1 April 2016, you’ll usually have to pay 3% on top of the normal Stamp Duty Land Tax rates if buying a new residential property means you’ll own more than one.

Use the SDLT calculator to work out how much tax you’ll pay.

Legal fees

Both buyers and sellers need a solicitor or registered conveyancer to carry out the legal work involved in buying/selling a property. You’ll need to pay for their time which could cost from £500-£750 plus VAT.

Survey costs

This is charged by a surveyor to check for structural defects on the property. Depending on what type of survey you have done, the cost will vary. You can pay anywhere from £250 to £1000 for a survey. See our jargon buster for details on the different types of surveys available.

Buildings insurance

For any mortgage you have to have buildings insurance. You may be offered it from your mortgage provider but it can pay to shop around to find the best policy for you. If your property is leasehold and you pay a management or maintenance fee, check to see if you’re already covered.

Property valuation

This fee is charged by your mortgage lender to have the property valued. With some mortgage deals the lender may pay it for. It could cost any where from £150 to £1,500 depending on the value of your property.

Ongoing costs

You'll also need to make sure you can pay any maintenance or ongoing costs. These may include:

Agency Fees

A sales or letting agency will charge a fee. If you want to use an agency to let or manage your property, make sure you compare costs to get the best deal. 

Property maintenance

This will depend on the age and condition of your property but you could get sprung with an unexpected cost, like a broken washing machine or blocked drain, at any time.


From a quick lick of paint to a brand new kitchen, make sure you factor in the costs of any home renovation that you’ll need to carry out before the property can be let out.

Empty time

Your property could be empty between tenants so you’ll need to make sure that you can still pay your mortgage during this time.

Landlord's insurance

Unlike building insurance (which you’ll need to have if you have a buy to let mortgage) you don’t have to have landlord insurance. But it can help you protect your investment.

Thanks, we appreciate the feedback.

Please tell us what you thought about this article.

"Invalid Characters: \/\\:&()<>"

Did you find this useful?

Cookies must be enabled

Useful links

There's a lot to think about when owning a rental property. Here are some useful links to help you get organised.

Impartial advice about Buy to let mortgages
Money Advice Service

Safeguard a deposit
Deposit Protection Scheme

Understand your obligations
Landlord responsibilities

Support for landlords
National Landlord's Association

Research rental prices

Work out what it'll cost
Stamp Duty Calculator

Find a surveyor
Royal Institute of Chartered Surveyors

Read about income tax for landlords
Paying tax


These links are to non-NatWest websites. NatWest is not liable for the accuracy of the information provided on these websites. 

Related articles

From getting organised to going through the Buy to let process, we're here to help.

Tools to help you plan
How much can you borrow?
Set Tab for lightbox