HOW MUCH WILL IT COST ME TO MOVE?
The average cost of moving home in the UK is just over £12,000 according to Which? There is plenty to factor in when you are putting together a budget for moving house. You will need to pay some upfront fees to your solicitor on account and potentially to your mortgage company, survey fees, then later in the transaction, you will need to allow for stamp duty and final legal expenses. There are also some practical choice payments closer to your moving date for example, the hire of a removal van/company to redirecting your mail. If you are selling your house, you will need to pay the estate agent for organising and managing the sale. This is agreed mostly upon a no-sale no-fee basis and is often 1% plus 20% VAT. This fee will be deducted from your completion statement and your conveyancer will transfer the funds to your estate agent.
Below is our useful breakdown of the other costs you will need to cover and when you will need to pay them:
Deposit and mortgage fees
You will usually need to provide a deposit to get a mortgage for a property. This ranges from a minimum of 5%, but a low deposit can make it harder to get a mortgage. A deposit of 15% or more of the property value might give you a better chance of being accepted. If you’re moving house, you’ll be able to use the equity from your first home to go towards your next deposit. If you’re buying a much more expensive house, you might need to save extra to cover the difference. You will also need to pay any fees to set up your mortgage. You can either pay these upfront or add them onto your mortgage.
Your deposit will have to be in your conveyancers account in order to exchange contracts.
After your mortgage fees and deposit, Stamp Duty is likely to be your highest cost when moving home. From 23/09/22, if you are moving house in England and Northern Ireland, you will not have to pay Stamp Duty on the first £250,000 of a property's purchase price. These rates are for those who will only own a single residential property, higher rates will be paid for additional properties.
Property value SDLT rate
Up to £250,000 Zero
The next £675,000 (the portion from £250,001 to £925,000) 5%
The next £575,000 (the portion from £925,001 to £1.5 million) 10%
The remaining amount (the portion above £1.5 million) 12%
If you are buying your first home you can claim a discount (relief): -
No SDLT up to £425,000
5% SDLT on the portion from £425,001 to £625,000
You are eligible if you and anyone else you are buying with are first-time buyers.
If the price is over £625,000, you cannot claim the relief.
The rules and rate of tax differ for first time buyers and if you live in Scotland or Wales.
We always advise to use a local conveyancer! They know the area and will more than likely already have the knowledge to answer many enquires. This will make the whole process a lot smoother and evidently quicker. The average cost of a conveyancer will be around £1000 per transaction plus Vat at 20% (buying and selling). If you are quoted less than this, think to yourself “you get what you pay for”.
This has never been so true than within conveyancing.
Other additional fees you will need to pay during the conveyancing process:
Electronic transfer fee - A standard £40 to £50 charge for transferring your mortgage loan from the lender over to your solicitor.
Searches (local and environmental) - £300 to £400 charge by your conveyancer to the council for a thorough report on your purchase and surrounding area.
Part of these fees will be payable or “placed on account” to start the process, the remainder will be settled on completion.
Your lender will also need to carry out a valuation of the home you are buying. This is to check the property is worth the agreed sale price and doesn’t have any issues that will affect its value. Some lenders offer a free valuation others may charge between £400 - £1500 depending on the value of the property. The free option will more than likely be a “desktop” valuation, meaning they don’t need access to the property but compare it to similar recently sold properties, using the local estate agent’s knowledge as well as land registry data. You will probably want to get a survey for yourself when you are moving house. This can help you find out any issues with the building – including any faults or repairs that you might need to carry out. Generally, a Home Buyers Report will suffice but you can have a more extensive survey which will be more expensive. Surveys range from around £500 - £1000 depending on the size of the property. Surveys will need to be paid for on instruction.
Removal costs will vary depending on whether you want to handle it yourself or pay for a removal company to do the heavy lifting. Hiring a van and sorting out the move yourself can be cheaper, but removal companies might take away some of the hassle on moving day. You will be required to pay a deposit on exchange and the remainder will need to be paid on moving day. We have lots of recommendations if you want to get any quotes.
Redirecting your mail can give you a bit of breathing space from the stress of moving. With Royal Mail, you can redirect your post for three, six or twelve months while you ensure everyone has your change of address. This includes if you’re moving overseas.
Length of Redirection Lead applicant fee Extra person fee
Within the UK
3 months £33.99 £8.00
6 months £47.99 £9.00
12 months £68.99 £10.00
3 months £120.99 £23.00
6 months £173.99 £25.00
12 months £249.99 £27.00
**Source Royal mail 22/11/22
Storage – Sometimes there’s a gap between handing over your keys and moving in. This means you may need a place to store your items for the time being. The fees for this depend on how much space you need but can reach around £25 to £100 a week.
Packing materials – When packing up your home, you’ll need boxes, bubble wrap, tape and labels. This can add up to £100.
Cleaning – You’ll want to leave your old home in good condition for the new owners. You might want to have your new house cleaned too. Hiring a cleaner to do a deep clean can cost between £100 to £350.
Care – The day of the move can be manic, so it may be worth finding childcare for your little ones. If you can’t ask Granny or Grandad, you could look into childcare for the day. This can cost between £40 and £70.
Pets – If you have a pet, you’ll probably want to get moved in before you are reunited. A kennel or cattery is around £10 to £20 per day. Or see if a friend or relative can watch your pet for a day.
Bills – Send a meter reading for your last bill as soon as you hand the keys over to the new owners. Then, take a meter reading in your new home to send to your new providers so you’re only charged for what you use.
Council tax – You’ll need to let your local council know your change of address. If you are moving to a new council district, you’ll need to register with them to get your bill.
Building management fees – If you’re buying a flat, you may have to pay towards the maintenance of the communal areas, like hallways and gardens. The fees can vary, so be sure to ask when you’re viewing a flat.
Insurance – You’ll need buildings insurance if you own a house. It’s also a good idea to get contents insurance. You may be able to move your insurance over to your new house or you can set up a new policy. Contact your existing insurance company if you have one to see what they offer.
If you would like more information or discuss your next move please contact us on: 01273 721061
, email: email@example.com or visit our website: www.dean-property.co.uk