If you\u2019re moving house you\u2019re probably not expecting it to be cheap. Unfortunately, the colossal commitment of a mortgage is only one in a long list of expenses you\u2019ll have to face in order to move up (or even down) the property ladder. Extra costs can easily run into five figures and it\u2019s vital you budget for the following when planning a move.<\/p>\n
SDLT (stamp duty land tax<\/a>) rates could add a hefty sum on to your costs depending on the value on the property you\u2019re moving into. You\u2019ll be charged the percentage shown below depending which bracket your home falls into.<\/p>\n The one exception to these rules is if the property is in an area designated by the government as being disadvantaged. In this case you only have to start paying 1% at the higher threshold of 150,000.<\/p>\n There used to relief for land tax on properties in such areas but as of the 6th of April 2013 this has been scrapped. However, if you made a transaction effective before this date you have until the 5th of May 2014 to make a claim for relief.<\/p>\n You should bear in mind just below a threshold you may be investigated by HMRC<\/a> to ensure you\u2019re not misrepresenting the price you are paying.<\/p>\n If, as part of your move, you’re selling your current house, you will end up paying the estate agent a percentage of the price it goes for, so again, the more the property costs, the higher this fee will be. This is negotiable but typically ends up between 1%-3% (a recent survey found 1.8% to be the national average).<\/p>\n You should be prepared to try and barter the rate down, especially if you\u2019re buying a more expensive property. If it\u2019s above \u00a3500,000 you might be able to get them to drop below 1%.<\/p>\n Some agents will charge a fixed fee. This is especially common for cheaper properties. Be sure to check that this doesn\u2019t work out to an extortionate percentage.<\/p>\n Always check that this fee covers everything you expect from the agent, or you could face extra hidden costs. Finally, be aware that the fee doesn\u2019t include VAT.<\/p>\n You can avoid such fees by trying to sell your house yourself but you’ll have to stump up for advertising costs and arrange viewings yourself. Though it entails a lot of work, it’s entirely possible to do. You can find some good advice on selling your home yourself<\/a> here.<\/p>\n You\u2019ll have to pay a fee in order to register yourself as the owner of your new property. This will be relatively small for a modestly property that has already been registered in the past, but if it\u2019s the first time the property has been registered it\u2019ll considerably dearer, especially if it\u2019s an expensive dwelling.<\/p>\n Depending on these circumstances you could expect to pay between \u00a340 to \u00a3900. You can find out more from this break down of registry service fees<\/a>.<\/p>\n You\u2019ll have to pay various fees to check the deeds of the property, find out about any issues that might affect you as the owner and uncover any legal liabilities you might be taking on. Altogether these will cost another \u00a3200 or so. The conveyancer should take care of this for you\u2026<\/p>\n You many be advised to purchase building indemnity insurance<\/a> to protect you from any costs you might incur as the owner of the dwelling. For example, if the previous owners had built an extension which contravened building regulations the council could potentially order to you to rectify the situation out of your own pocket. Indemnity insurance is designed to cover such risks.<\/p>\n Of course, you\u2019ll have to pay for these services to, somewhere in the region of \u00a3600- \u00a31,000. If you\u2019re also selling, you may be able to save money on legal costs by getting a package detail for both your sale and purchase.<\/p>\n You can choose how detailed a survey you want to carry out. A basic homebuyer\u2019s report will cost upward of \u00a3300 whereas comprehensive structural survey will cost at least \u00a3500. Of course, depending on what the surveys find, you may be able to save much more than this by leveraging down the asking price.<\/p>\n If you already have a mortgage you could be hit with exit fees of around \u00a3300, if you don\u2019t you\u2019ll be looking at paying as much as \u00a31,000 in arrangement fees, as well \u00a3200 or so for a valuation survey. If you use a broker to obtain your mortgage you’ll also have to pay a brokerage fee.<\/p>\n Depending on the type of mortgage you obtain you might be able to bring down your moving costs by selecting an option that comes with free valuation and conveyancing.<\/p>\n Depending on when you move, how much you need to transport, the distances involved and the accessibility of the two properties you might end paying \u00a3500 to \u00a32,000 for removal services.<\/p>\n The best way to avoid paying over the odds is to shop around. Make sure you get at least three quotes and make sure to factor in insurance for your belongings. Always go with a company approved by the British Association of Removers<\/a>. Obviously, getting rid of anything you don\u2019t need to take with you before hand will save you money (indeed, you might be able to raise some of your moving costs by selling it off). You can also bring down the cost of moving by avoiding peak times such as Fridays and the end of the month.<\/p>\n If it\u2019s a possibility, you will be able to save a considerable amount of money by organising a DIY removal. Of course, you\u2019ll have to hire a van, pay for petrol and deal with the stress of getting the job done. In addition you possessions will probably not be covered by your standard contents insurance if you opt to move them yourself.<\/p>\n There\u2019s a good chance you\u2019ll forget to inform somebody of your change of address. As well as being inconvenient, missing your mail you leave you open to the risk of identity theft. Setting up a mail redirection service to ensure all your post reaches you will cost around \u00a340.<\/p>\n You can normally expect to take over the current supply for free by simply informing the provider that you\u2019re moving in, however if a reconnection is necessary you may be expected to foot the bill.<\/p>\n\n
Estate Agent\u2019s Fees<\/h2>\n
Land Registration Fee<\/h2>\n
Search Fees<\/h2>\n
Indemnity Insurance<\/h2>\n
Conveyancing\/ Solicitors Fees<\/h2>\n
Surveys<\/h2>\n
Extra Mortgage Fees<\/h2>\n
Removal<\/h2>\n
Mail Redirection<\/h2>\n
Gas And Electricity Reconnection<\/h2>\n
Ongoing Costs<\/h2>\n