You’ve probably saved hard for a deposit on your new house, but don’t let the other costs of moving give you an unpleasant surprise.
You’ll soon discover that the deposit is just the start, and unless you’ve thought about conveyancing, estate agents, stamp duty, valuation fees, insurances and more – you could find your house move bill spiralling to much more than you’d expected.
For more information on those sometimes hidden moving costs, visit the Money Advice Service website and use the online mortgage calculator to get a realistic moving cost.
Some of the key additional costs to bear in mind include:
- Estate agents fees – many offer different rates but you should expect them to take somewhere between 1% and 4% commission on the sale of your home.
- Conveyancing/legal – fees are dependent on the cost of the property you’re buying or selling, typically you’d end up paying almost £600 in fees on a property of £167,000.
- Valuation and survey fees – usually paid by the buyer, the cost of a survey can be up to £1,000 depending on the type of survey carried out.
- Stamp Duty – this tax is payable on any property costing £125,000 or more. There’s a sliding scale which ranges from 1% on properties between £125,000 and £250,000, up to 7% on properties over £2 million.
- Removal costs – depending on how many belongings you need to move (and how far you’re moving) you may have no choice but to use some kind of removal service, so make sure you factor this in – and leave enough time to get a number of quotes to get the best deal (www.reallymoving.com has some top tips on removal services, such as avoiding Fridays – particularly on a bank holiday weekend – as these are more expensive).
As well as the costs associated with the move itself, you’ll need to have a few things in place once you’ve moved in, including insurances for building and contents. Some lenders will also require you to have life insurance as a condition of your mortgage. Comparison sites such as www.comparethemarket.com or www.confused.com can help you find the best insurance deals.
Also be aware of costs associated with your new home which may give you an ongoing financial commitment. If you are buying a leasehold property, you’ll have to pay ground rent and service charges. Some new developments also operate an annual service charge to maintain landscaping on the estate. There’s no typical amount for these fees, and they will form part of your purchase information, but they are sometimes easy to overlook.
Finally, it may sound obvious, but if you’re moving to a different area or to a larger property, make sure you investigate how much more your household bills and council tax are going to be. You can search for your new council tax band on the Government’s website www.gov.uk