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
Thanks for the information. We plan on moving in a few years.
ReplyDeleteI could not imagine trying to move right now. We just bought our first home a couple years ago and it was so stressful. I'm staying put until this house pushes us out ;)
ReplyDeleteI am moving at this time but we own this house. We have to rent or sell the other one. The taxes went up so high it is horrible. There is many costs as the cost of living continues to soar with everything too. Thanks for the great list of items. Rita Spratlen
ReplyDeletePeople don't always think ahead when buying a new house or even when moving to a new residence, one of the things that people tend to overlook or are not aware of is deposits that utility companies require, and closing costs and other lending fees, moving is very expensive, thank you for reminding me of the risks.
ReplyDelete