Date Published 13 April 2018
The Costs of Moving House
If you are thinking of moving house, here are some tips to help you out when you are considering buying a house and thinking about some costs that may get overlooked.
Conveyancing fees – A solicitor or conveyancer will carry out this work, this is the legal process involved when buying a property. When budgeting for this it depends on the value of the home you are buying and the level of expertise required. A solicitor or conveyancer will carry out this work. They will also do local searches, which will cost you £250-£300, to check whether there are any local plans or problems.
Electronic transfer fee- This often costs £40-£50 and it covers the lenders cost of transferring the mortgage money from the lender to the solicitor.
Mortgage fees- often overlooked when you think of moving these costs might include: a booking fee, an arrangement fee and a mortgage valuation fee.
Survey Costs - There are different types of survey for you to choose from, speaking to a Surveyor will help you to decide which one is right for you. It is a good idea not to let the cost cloud your judgement, they can cost anything from a few hundred pounds to over a thousand pounds but getting the wrong survey done can end up costing you a lot more in the long run.
Stamp duty – Stamp Duty Land Tax (SDLT) is a tax on properties bought in England and Northern Ireland. The good news is if you are first time buyer then there is no Stamp Duty on the first £300,000 for properties worth up to £500,000. For the rest of the market stamp duty is applied in bands and is based on the purchase price with no duty on the first £125,000.
Purchase price of property
Rate of Stamp Duty
Buy to Let/ Additional Home Rate*
£0 - £125,000
£125,001 - £250,000
£250,001 - £925,000
£925,001 - £1,500,000
However, as you see there is a 3% increase on top of current rates if you`re buying an additional residential property above £40,000 such as a second home or buy-to-let property. There are many stamp duty calculators available online that will help you work out the amount due.
Home insurance- another cost that many buyers overlook. Not a large amount of money in the grand scheme of moving but not something you can overlook either.
Estate agent fee – Most estate agents will look to charge between 1.8% and 2.4% of the property price for selling your home, Novahomes sole agency selling fee is just 0.9%. It is always a good idea to get a good range of quotes before deciding who to go with.
Finally, when it comes to the moving day you`ll most likely need a removal company. Although if you are fit and able it is possible to save money by hiring a van and moving the furniture yourself.
For more information or for an estimate of the value of your home call Matthew or Sarah Novahomes on 01752 206040,