Budget for Your Big Move with Our Homebuyers' Guide to Fees and Charges
Buying a new home can be an exciting prospect, but often in the thrill of the search, buyers fail to budget for some of the costs that are part and parcel of the process.
Consumer champion Which? estimates moving costs on average of £10,000 (that is excluding deposit), although this figure varies depending on the value of the new property.
By starting with a clear picture of all the fees you are likely to incur, you can avoid any last-minute surprises and the indignity of raiding your toddler’s moneybox to pay the removal crew on moving day.
Here is a checklist of moving-related costs:
Stamp Duty – This is a tiered tax – the more expensive the property, the more you pay. Due to the pandemic, temporary changes are in place, meaning Stamp Duty does not apply to the first £500,000 of a property purchase. This rule ends on 31 March 2021.
Legal fees – The cost of conveyancing – that’s the paperwork that secures the legal transfer of property – varies depending on whether you’re buying a freehold or leasehold property (expect leasehold to cost you more). Tip: When you are getting conveyancing quotes, check the final price includes VAT, search fees and Land Registry fees.
Valuation fee – If you are taking out a mortgage, your lender will insist on a valuation to ensure that you are not paying over the odds for your new home.
Mortgage fees – Some mortgage deals include an arrangement fee or an application fee (or both).
Survey fees – Different types of surveys are available. The most basic option should be a few hundred quid, while the most comprehensive survey can cost thousands of pounds.
Insurance – Most lenders insist on buildings insurance as part of the terms of the mortgage. It covers the cost of repairing your home in the event of a disaster such as a flood, fire, or falling tree.
Removals – Removal costs vary depending on how far you are going and how much stuff you have (are you a minimalist or a hoarder?). The website comparemymove.com estimates it costs £800 to move belongings from a three-bed house to a property 50 miles away. Throw in another £250 for packing and materials.
Redirecting mail – If you are planning on redirecting your mail to your new address (not such a bad idea in this era of identity fraud), Royal Mail charges £80 for 12 months.
The team at Whitlocks can ensure your move goes smoothly. If you need advice or have any questions about the moving process, please get in touch. We are here to help.