How much does it Really Cost to Move House?
So, you have saved up the money for a deposit and you think you’re ready to put in an offer on a house. But, there are so many other factors you need to take into consideration before taking this final step. Buying and selling a home can be expensive as there are lots of hidden costs associated with each part of the process. Luckily, we have put together a guide which breaks down each cost, explaining them in detail. Our aim is not to worry you but rather to keep you well informed to ensure you have sufficient financial stability to cover each part of the move.
A mortgage valuation, put simply, is how much it will cost to get a house surveyed. This is a necessary requirement by the bank to ensure that you are paying the correct amount based on the value of the property. The cost of this is usually based on the value of the house, for example, if the property is worth £150,000 you might get charged around £150 for the valuation. A house that is higher in value will therefore cost more to value.
There are four types of survey you can choose from: condition report, home buyer report, building survey, full structural survey. It’s useful to note that surveys are a legal requirement in Scotland but not the rest of the UK, however they are always advised as it creates a sense of transparency between the buyer and seller. The condition report averages at £250 and only provides a basic three point rating system used to identify problems. The home buyer report and building survey cost around £400 each as they include more information. Whereas the full structural survey averages at £600 as it provides the most information regarding the building’s structural materials, roof, foundation etc.
Conveyancing – Buying
Conveyancing is basically the solicitor’s fees. So the solicitor will charge you a set fee based on the value of your house so for a property valued at £150,000 you would be likely to pay £480. However, there can also be additional fees on top of that ranging from £200 – £500 so be prepared to set aside some extra money for this.
Stamp duty can also cause a lot of stress if you weren’t aware of this fee. Luckily, for first time buyers looking to purchase a property that is less than £300,000 they do not need to pay this fee, but for England, Wales and Northern Ireland this is a legal requirement. The payment is made to HMRC and usually equates to around £2,000 for a £200,000 property. But the percentage you pay increases as the value of your property does so people can end up paying over £30,000 in stamp duty for a property valued at £900,000.
You will probably have saved up for deposit first as it is essential for buying a property. Usually people put down a deposit of 10% minimum but it depends on how much you are able to save. If you have the financial means to do so it is advised that you put down as much money as you can as it means your repayments will be less and over a shorter period of time.
Estate Agent Fees
Estate agents tend to take between 1 and 3.5% of the final sale plus VAT. So depending on how much your property sells for will determine how much money you’ll need to fork out to the estate agent. This usually costs around £1,500 for Glasgow estate agents but if you’re selling in London this can easily creep up to £5,000.
Conveyancing – Selling
Conveyancing fees when you’re selling your home are usually related to creating and understanding contracts. This can range from £500 up to £900 depending on the valuation of your home. There are often cheaper conveyancing alternatives online but sometimes their means of communication can be restricted which is not ideal when you’re dealing with contractual agreements, terms and conditions.
The final step of the process that can cause headaches is getting a removal company at a fair rate. The cost of the move depends on how many bedrooms you have as well as the distance it will take to travel to your new house. If you have a lot of belongings you might require more removal men so it’s important to understand that a larger property with lots of bedrooms might cost you more.
Luckily for you, Clockwork removals have been helping people move for over 25 years and we are committed to providing our customers with the best service possible. If you have any questions about moving house or if you would like a free quote give us a call on 03332 413 120 or click here.