⚠ The cost most buyers underestimate
In competitive Scottish markets, buyers bid above the Home Report valuation. Your mortgage lender lends against the valuation — not your bid. Every pound you bid above the Home Report value must come from your own cash savings. This "bid premium" can add £10,000–£30,000+ to your cash requirement in Edinburgh and Glasgow.
Complete cost breakdown
| Cost | Typical range | When paid |
|---|---|---|
| LBTT | 0 – £13,350+ (purchase price dependent) | Settlement day (date of entry) |
| Solicitor fees (legal + conveyancing) | £900–£1,500 + VAT | At conclusion; partial upfront |
| Property searches | £250–£300 | Usually included in solicitor quote |
| Land Register registration | From £60 (scale fee) | At registration; via solicitor |
| Mortgage arrangement fee | £0–£1,500 | At application or added to mortgage |
| Independent survey (optional) | £300–£1,000 | Before offer |
| Cash premium above Home Report value | Variable: £0 to £40,000+ | Settlement day |
| Buildings insurance (from) | £150–£400/year | From date of entry |
LBTT by purchase price
| Purchase price | Standard buyer LBTT | First-time buyer LBTT |
|---|---|---|
| £150,000 | £100 | £0 |
| £180,000 | £700 | £100 |
| £220,000 | £1,500 | £900 |
| £250,000 | £2,100 | £1,500 |
| £300,000 | £4,600 | £4,000 |
| £400,000 | £13,350 | £12,750 |
LBTT rates confirmed correct as of March 2026 (Scottish Budget 2026-27). Use our full LBTT calculator for any purchase price.
Worked examples: total cash needed
Example 1: £220,000 property, 10% deposit, standard buyer, Edinburgh
| Item | Amount |
|---|---|
| Deposit (10% of £220,000 HR value) | £22,000 |
| Bid premium (7% above HR = £235,400 bid) | £15,400 |
| LBTT on £235,400 bid (standard) | £2,808 |
| Solicitor fees (est. all-in inc. VAT) | £1,500 |
| Total cash needed on settlement day | ~£41,700 |
Example 2: £180,000 property, 10% deposit, first-time buyer, smaller Scottish city
| Item | Amount |
|---|---|
| Deposit (10% of £180,000) | £18,000 |
| Bid premium (0% — no closing date) | £0 |
| LBTT (FTB relief applied) | £100 |
| Solicitor fees (est. all-in inc. VAT) | £1,200 |
| Total cash needed | ~£19,300 |
Scotland vs England: key cost differences
| Feature | Scotland | England |
|---|---|---|
| Property tax | LBTT (0% to 12%) | SDLT (different rates) |
| FTB nil-rate threshold | £175,000 | £300,000 (subject to periodic change) |
| Home Report | Required — provided by seller; buyer pays nothing | Not required; buyer commissions survey |
| Deposit at contract stage | None at missives; full price on date of entry | 10% at exchange of contracts |
| Survey cost (buyer) | Usually £0 (Home Report covers it) | £300–£1,000 (buyer commissions survey) |
Frequently asked questions
Is LBTT charged on the bid price or the Home Report value?
LBTT is charged on the actual purchase price (your successful bid), not the Home Report valuation. If you bid above the Home Report value, you pay LBTT on the higher figure.
Do I pay solicitor fees even if my offer is not accepted?
You may owe fees for work your solicitor has already done — such as noting interest, reviewing the Home Report, and preparing an offer. Many solicitors offer fixed-fee agreements — clarify the terms of your fee arrangement before instructing.
Can I add LBTT to my mortgage?
No. LBTT must be paid in cash on settlement day. Your mortgage cannot be increased to cover LBTT.
LBTT rates are correct as of March 2026 and confirmed by the Scottish Budget 2026-27 (January 2026). Source: Revenue Scotland (revenue.scot) and gov.scot. Solicitor fee ranges are based on published market data from MoneyHelper and MoneySavingExpert. Bid premiums are illustrative and based on ESPC market data and Registers of Scotland transactions. This guide does not constitute legal or financial advice.