Last Updated: 20/01/2016
How much does it cost to move?
Moving home can be an expensive process but it is important to not solely focus on the purchase or sales price of the property but to consider all of the additional costs involved that you may not be aware of. Talk to your estate agent and ask them for a example breakdown of the cost of moving.
If you haven’t moved for several years then these costs may have changed. It is good to get up to date with this first to ensure that you are budgeting correctly from the start. Many people fall in love with a property and then have to start from the beginning when they realise that their dream home is not affordable for one reason or another.
This guide will look at some of the other costs that arise when moving home:
Conveyancing is the process of instructing a solicitor to act on your behalf when buying or selling a property. Conveyancing costs can vary from around £500 to £1,500 (plus VAT), and this figure will vary depending on the style or price of property that is being purchased. If you are selling and buying, you’ll likely find that a solicitor will offer a package deal.
You will find that many agents operate on commission basis and they will charge between 1% and 2% of the selling price of the property, this is paid by the selling party. There is also 20% VAT potentially to add to this fee, so bear this in mind when it comes to calculating your net sales price.
There are changes to stamp duty coming in April of 2016, but currently, a quick guide to the Stamp duty rate is as follows:
Minimum Property Price Maximum Property Price Stamp Duty Rate
£0 £125,000 0%
£125,001 £250,000 2%
£250,001 £925,000 5%
£925,001 £1.5million 10%
Over £1.5 million 12%
This fee is dependent on the style of mortgage that you obtain but you may find that your bank or mortgage lender will charge a valuation fee. This allows them to assess the property to determine how much they are willing to lend you to buy the property. Depending on the mortgage, this can cost anything between £150 and £1,500. In some cases, this fee may be added to the total loan amount therefore you could be paying this off over the next 25 years.
Prior to a sale being concluded, a surveyor needs to survey the property to ensure that there are no defects or structural problems with the property. There are various types of surveyor’s reports that you can choose with the simplest, and cheapest, being the home condition survey. The cost of a surveyor’s fee can be anything between £250 and £600. Not all buyers instruct an independent surveyor when purchasing a more modern home.
Electronic transfer fee
This covers the cost of moving the mortgage funds from your bank to your solicitor’s account and this can cost around £50.
You may also have removal costs when you pay for a removal firm to help you out. Three tips to remember to keep this cost as low as possible are:
• Get rid of clutter and things you don’t need
• Book in advance if possible (depending on exchange dates)
• Get a number of quotes and compare them. Don’t always consider the cheapest price!
Want to find out how much your home is worth? click here