When moving house, there are a lot of costs involved that might not immediately come to mind. Let’s have a look at these now to make sure you’re aware of the true cost of moving to a new home…
Not Just a Mortgage…
There are a range of fees involved when it comes to moving house; it’s not just your deposit and mortgage fees you need to think about.
Barclays found that the average cost of moving home in the UK is £11,777, but this amount can vary a lot from person to person depending on where you live.
Property Survey
When moving home, you may wish to conduct a property survey, where an expert inspects the home you’re looking to buy to check for any structural problems or areas in need of repair.
This is different to a valuation, which is a basic check arranged by your mortgage lender to check that the proposed property price is realistic. Many lenders don’t charge for these valuations.
You don’t have to get a property survey, and it will cost money to get one. However, carrying out a property survey may actually save you money in the long run if any serious problems are found within the home which you would not otherwise be aware of.
Legal Fees
A solicitor or conveyancer will be in charge of dealing with paperwork to ensure you move into your new home on time, giving you legal advice, conducting property searches, transferring funds, and registering your property ownership.
As you can probably imagine, this costs money, so you should expect to pay for legal fees when buying a new property.
Estate Agent Fees
If you are selling your current home, you will also need to factor in estate agent fees for those helping to sell the property. These fees are calculated as a percentage of the sale price or as a flat fee.
Before picking your estate agent, make sure you are fully aware of all of the costs involved and whether VAT is included in the agreed upon cost.
Stamp Duty Land Tax
If the property you’re buying is over £250,000 (or £425,000 for first time buyers), you will also have to pay Stamp Duty Land Tax.
You can use the Stamp Duty Land Tax calculator for free on the government website to see how much stamp duty you will have to pay for your desired property.
Home Insurance
Mortgage lenders tend to insist that you have appropriate buildings insurance for your mortgage terms. This covers damage to the home’s structure, such as its roof, walls, windows, doors and fixtures.
It’s strongly advised to get buildings insurance as a homeowner, as you need to consider how else you would afford to rebuild or repair your house if it was destroyed or damaged.
Contents insurance covers damage to the things inside your home, such as appliances, carpets, furniture, artwork, clothes, and so on. You can buy buildings and contents insurance separately or as a combined policy.
Other Costs…
Aside from those already discussed, there are a variety of other costs you might have to pay when buying a new home, such as:
- Decorating and home improvement costs
- Moving fees, e.g, hiring removal vans, paying for shipping costs, or paying for storage facilities if there is a gap between moving out of your current home and into the next
- Professional cleaning- some people choose to get their current home professionally cleaned before moving out so that it’s in good condition for the new owners
- Council tax