Planning on moving house? Make sure you budget for all the costs.
When planning for buying a house there are plenty of hidden costs to consider. It’s not just the deposit you have to build into your moving house costs. Here’s a simple guide to help you know what to include. From mortgage charges and legal fees to surveys and stamp duty.
Check out our simple guide to moving house costs
Estate Agents work on a commission which is paid buy the sellers of the property not the buyers. Rates vary from between 1% and 3%, but if you choose a sole agent this will keep the commission charges down. There are other ways of selling your home without going through an agent, these include independent websites and if you find the right house yourself you could investigate a ‘house swop’ avoiding all those agents’ fees. You can even put a note through the property door and see if the owner is interested in selling.
When you take out a mortgage there will be arrangement fees and costs for setting up the loan. You can get great deals if you pay the fees up front. Some providers will let you add the charges to the cost of the mortgage but you will have to pay interest on them.
Once you have found a mortgage and an offer has been made your lender will want to carry out a valuation survey to ensure the property is worth what you are paying for it. There is a charge for this called a valuation fee. Costs can vary from £200 – £1500 depending on the lender.
House survey costs
Separate to the house valuation with your lender you should organise an independent survey to see if there are any issues. There are two kinds of survey – a homebuyer’s report and a building survey (also known as a structural survey).
- A homebuyer’s report covers the general condition of the property you’re going to buy. Costs vary from £350 and £1,000.
- A building survey gives a more detailed report on the condition and structure of the property. Charges vary between £500 and £1,500.
To ensure your purchase goes through properly you’ll need a solicitor who specialises in property. They will act on your behalf you when you are buying or selling. Each solitior has there own way of charging. Some will be a flat fee others will charge a percentage of the value of the property. Costs will vary depending on the ease of the transaction – somewhere between £400 and £1000.
Make sure you shop around for your solicitor. Ask for recommendations from friends or family. If you are using an estate agent see if they can recommend a company. Check on their credentials make sure they belong to the right regulation bodies.
Land Registry fees
These can easily be forgotten. The Land Registry is a government department that keeps records of all registered properties in England and Wales. It charges a fee for registering property with a new owner. Costs vary depending on the property price but tend to be in the region £90 to £150.
Stamp Duty costs
Stamp duty is the tax payable to the government for land and property transactions. Depending on the value of your property will depend on the percentage you will need to pay. Any property over the value of £125,00 will have to pay stamp duty. You can visit the government website for the finer detail but as an example properties from £125,001 – £250,000 you will pay 2%. Properties from £925,001 – £1,500,000 it is 10%.
Other moving house costs will include money transfer fees between mortgage lenders, solicitors, buyers and sellers, and for searches, which are required to find out what might negatively affect the home you’re buying, such as flooding.
As part of your mortgage terms and conditions you will need to have buildings insurance. Our Top tip – shop around and it maybe cheaper to add your contents insurance at the same time.
Don’t forget to add those removal costs to the list but to get the best deals get your quotes in as early as possible. Try to avoid moving on a weekend or bank holiday as these can be expensive days. Make sure you use a removal company who is a member of the British Association of Removers as they will be insured for your contents and have to adhere to a strict code of practice.
When you get your quotes get more than one and ensure you compare like for like. Some companies charge extra for packing boxes, packing materials, late keys and insurance. You might just look at the quote price and not be aware of the added extras. Don’t be afraid to ask questions.
If you would like us to help you or would like to book an appointment give us a call on 014949 774186 or fill out our quick quote form for a free price.