How much does it cost to move home?
You’ve worked hard and saved as much money as you possibly can or have built up equity in your existing home to use as a deposit for your dream home. Then suddenly, you realise that moving house costs much more than just a deposit.
This blog provides a rough guide for moving costs associated with buying or/and selling a property.
1) The Legal Costs
First off, the legal stuff! Aside from the actual cost of the house and the mortgage repayments, one of the first things to do is think about the legal fees, as they can have a significant impact on the cost of moving house.
Conveyancing companies and solicitors are the ones who focus on property and the finer details. Many have almost instant conveyancing quotes on their website where you will have to input basic financial figures, and they’ll tell you roughly how much it will cost in legal fees. But for a more accurate costing, it is best to contact a few conveyancers and ask them for a personal quote.
Conveyancers will look at searches that will be needed, such as local authority searches, existing planning permissions and specific things such as mining reports and building regulations.
The legal team should also highlight other costs, such as the Land Registry fee, which comes in when the property is registered in your name.
2) Estate Agency Selling Fees
If you’re selling your house, then your estate agents’ costs will need to be factored in.
On average, reputable and experienced estate agents in the East Midlands charge anywhere from 1% to 1.75% + VAT of your sale agreed price, depending on the service and the marketing package you opt for.
For reference, if your agent charges you 1% of your agreed offer at £250,000, you will need to factor in £2,500 + VAT for agency selling fees.
Estate Agency fees will vary from agent to agent, but it is important to remember that the cheapest fee doesn’t necessarily mean the best service and can end up costing you more down the line.
3) House Removal Costs
If you’re moving a lot of furniture from your old house to your new one, chances are that you will need a removal company to help you. The cost of this will vary because removal companies will calculate such things as how many bedrooms, how much furniture, the distance between houses, and whether specialist services are required.
It could be as little as £400 to well over £1,000. We advise that you decide precisely what you need and then shop around to get quotes and see what the customer service is like.
Have a look at online review sites, as these could give you a good indication of how good a company is.
If you are breaking chain and need to store your items for a short period, you will also need to consider storage costs before you move into your new home! Look for local deals online and pop into several storage companies to get the best price and offer at that time. Many companies offer fantastic initial storage rates.
4) Stamp Duty
If you buy a property or land in England that’s over a certain price (currently properties over £250,000), you have to pay Stamp Duty.
How much you pay depends on several factors, but you should expect to pay a certain percentage of the value of the property as below:
0% – Up to £250,000
5% – £250,001 to £925,000
10% – £925,001 to £1.5 million
12% – £1.5 million and above
For example, if you are moving home and purchasing a £500,000 property, this would mean a 5% Stamp Duty cost of £12,500.
There are a number of websites that offer a Stamp Duty Calculator, and the Government website www.gov.uk will tell you what it’s all about. If you need help, we can help you work out how much to ‘set aside’.
From time to time, depending on the governments budget and economical status, Stamp Duty rates do change, or new incentives are brought in, but it is best to stick with the rates set out above to ensure you factor this cost in.
5) Mortgage Costs
Unless you are a cash buyer, most people will have to obtain a mortgage to buy a house. Rates and payments will vary depending on the lender or broker, but there are a number of typical costs associated with a mortgage.
There can be booking, product or arrangement fees, and because the lender will need to know the value of a property, they will need to arrange for an independent valuation too.
Booking fees (to secure your product) can be between £150 and £300, arrangement fee (set up your mortgage) might be around £2,000, and a mortgage valuation fee could be free or anywhere between £150 and £1,500, depending on the lender and the property.
6) Home Insurance
At the point of exchange, you will be required by your conveyancers to obtain home insurance on the property you are purchasing. This is a requirement and you won’t be able to exchange without proof of insurance.
You’ll need building insurance to cover the bricks and mortar and contents insurance, too, as this will cover your belongings and possessions.
The cost of this will vary because no two properties are the same, and each purchase has a different property value, possessions, and other factors. The key is to do your research and get everything in place before the day, and then it should be a case of pressing the button.
7) Frequently Asked Questions
What factors influence house moving costs?
The distance of the move, the volume of belongings, and additional services like packing contribute to the overall cost.
Are there ways to reduce moving expenses?
Downsizing possessions, scheduling a mid-week move, obtaining multiple quotes from conveyancers and mortgage brokers and using comparison websites for insurances.
Do moving companies provide insurance for belongings?
Yes, reputable moving companies typically offer various insurance options to protect belongings during the relocation.
Are there hidden costs associated with moving?
Some potential hidden costs include packing materials, additional fees for bulky items, and charges for delays or changes in the moving schedule. It is also worth checking whether your council tax band will change.
As you can see, the cost to move home varies from case to case and your personal circumstances. But even when you get a great deal on your property, there are still other costs to consider including, but not limited to, selling fees, legal fees, to mortgage arrangements, removals and insurance.
The good news is that our team are more than happy to help you understand and work your personal costs out!
For no-obligation advice on buying or selling a home across the East Midlands please contact our expert property team via email at info@homemoveEA.co.uk or call us on 01604 321321.
