Moving home costs for a typical UK house move are determined by the sale price. Stamp duty for example is hefty tax based on house price, this tax does not move with house price inflation capturing more and more people each year.
Calculating the costs of moving house is normally about the upfront costs, it’s an essential part of planning for your next move. We provide some money saving tips, advice and links so you can easily compare services to get the best possible deal when moving home.
Moving costs in the UK
In summary these are the key costs of moving incurred when moving home
- Energy performance certificates
- Mortgage fees
- Estate agent fees
- For Sale by owner advertising costs
- Conveyancing and legal costs
- Surveyor costs
- Stamp Duty
- Removal costs
Mortgage costs can be the largest expense with providers asking for large deposits, arrangement fees, survey for mortgage valuation fees.
One fee that may come as a surprise is the higher lending charges; this is where the mortgage provider takes out an additional insurance to cover their risk. This protects them in case you can’t pay back your loan and they have to sell your house at a loss. Costs typically are about 1.5% of the amount you borrow.
Energy Performance Certificates
When you are selling property privately like any other seller in England & Wales means that you will need a Energy Performance Certificate in fact the Energy Performance Certificate is required by law when a building is constructed, sold or put up for rent. Learn more about EPC’s here
Home reports, Scotland’s equivalent of Hips, are still required and include an EPC (known as an energy report). They also include a survey and a property questionnaire.
Top money saving tip: Check that your property does not already have an EPC; they are stored at a national register here http://www.epcregister.com/
Do not order an EPC via an estate agent they need to make a profit and will cost a lot more than going with a local provider or using The House Shop.
A survey made on behalf of the mortgage company who need to satisfy themselves that they are funding a property priced correctly normally costs about £175
More in depth surveys that can be made by a buyer or optional and the type of survey can differ.
Home condition survey s– are the cheapest type of survey costs are about £250
Homebuyer’s report looking thoroughly inside and outside a property. It also includes a valuation. Typical cost: £400+
Building or structural survey – this is the most comprehensive survey
Typical cost: £600+
Top money saving tip : Buyers often attempt to reduce their offers after reading a valuation surveyor. Be prepared for this and hold something back from your sale to include in the sale so to maintain your selling price. The fact is no property is perfect and most surveyors will point out something that may need attention
The Cost of Estate Agents
Traditional high street estate agents base their fees on the actual property-selling price. Each estate agent can vary and some charge more depending on the agreement you sign with them. Sole agency for example will in most cases attract a lower estate agent marketing fees.
Things to remember about estate agent fees
They may charge more if you want local advertising or anything above their normal marketing.
Fees attract VAT and many fees are quoted without VAT
Typical agents fees are now 1. % to 3%
Top money saving tip: Avoid an estate agent that has apparently over valued your home. This is tactic to win your business but will cost you more in time and effort, as your property stays unsold.
For Sale By Owner Costs
Saving money selling a home is more and more popular with no legal reason to use an estate agent it makes sense for lots of sellers to advertise a home for sale. The costs of selling a property yourself without an agent are fixed and you have the freedom to undertake any sort of marketing to help find a buyer. Learn about selling your house without an estate agent here
Top money saving tip: Use online advertising to sell your property yourself and pocket thousands in savings. By using a For Sale Board you increase your opportunities for a quicker sale.
Conveyancing – Legal Costs
No need to stick to your high street solicitor who may see conveyancing as a necessary evil. Better to use a dedicated conveyancing company or online conveyancing service. Here charges are fixed and often you can work with a no sale no fee arrangement, which is great if the sale falls thru.
Charges will typically include fees for the conveyancer’s time, telephone and Internet charges, letters and an indemnity fee, plus a contingency for unforeseen problems. On top of that, there will be council and Land Registry fees for searches and for lodging title deeds. The average fees are about £850 but best to get a quote that includes all the necessary fees.
The Cost of Stamp Duty
When you buy a property in the UK over a certain price, you have to pay Stamp Duty Land Tax (SDLT). This is charged on all purchases of houses, flats and other land and buildings.
The SDLT rate depends on:
The purchase price of the property
Whether the property is residential
Whether the property is in a disadvantaged area
Stamp duty may also be due if you lease a property. The lease must be for at least £125,000 for residential properties or £150,000 for non-residential or mixed use.
£0 – £125,000 – 0%
£125,001 – £250,000 – 1%
£250,001 – £500,000 – 3%
£500,001 – £1 million -4%
Over £1 million – £2 million – 5%
Over £2 million – 7%
Over £2 million bought by corporate bodies – 15%
Had the £250,000 threshold risen in line with house price inflation it would now stand at £675,000, according to Nationwide index figures. The £500,000 threshold would now be at £1.35m.More details at Gov.uk
This can vary on the type of removal you make, from hiring your own self-drive van, a man with a van to a full professional house removal service. Prices can range roughly from around £500 for a small 2 bed house up to several thousand for really large houses and complicated long distance moves.
When employing a removal company consider asking some questions about the type and level of insurance cover they offer. Are they members of The British Association of Removers If not why not? Learn exactly how will the move be carried out? E.g. number of days, time of arrival, crew size etc.
Top money saving tip: always compare and receive several quotes
author : Nick Marr