So Your Thinking of Moving House!
What is the true cost of moving house? Here we take a look and find out all the associated costs of moving house, even those you didn’t know about. It is an extremely exciting and stressful time. There are so many things to think about and consider. High up there on the list is sure to be, how much will it cost? Let’s jump in and take a closer look.
Things To Consider When Working Out The Cost Of Moving House.
- Mortgage Cost’s
- Home Survey costs
- Legal Fees
- Estate Agent Fees
- Stamp Duty
- Home Insurance
- Removal and Storage Costs
- The Hidden Extras
First things first, you need to seek advice from a professional and find out how much you will be able to borrow and whether there will be any early repayment costs with your current mortgage—there are a few options to consider here. You could choose a mortgage Broker or approach the Bank.
A mortgage broker, or adviser, is someone who will review all the mortgages available to you based on your personal financial situation. They will apply on your behalf, and should do all admin and chasing required. This will undoubtedly take away much of the stress for you. Mortgage advisors usually work with a panel of selected lenders. As such, they will know which lender is likely to accept your application. At Balsall Common Estate & Lettings, we have an in-house mortgage advisor on hand to ensure you get the best advice available. Please contact us for a no-obligation Mortgage appointment. We look forward to hearing from you.
You could approach your Bank or Building Society for lending. It does not hurt to make sure that you see all the options that are available to you. The only thing this will cost you is time, and it may save you thousands of your hard-earned cash.
Please always seek advice. It is not enough to do some research of your own and think you know it all. You will only have yourself to blame if anything happens in the future. However, if you sought advice, you will have more rights in the future if you ever need to complain.
Costs Of Moving House
You may be charged either a flat fee for your mortgage or a percentage of the overall mortgage cost. Mortgage Brokers earn commission and must clearly outline their charges and any fees or commissions they receive from a lender before entering into a contract to act on your behalf. Some fees may be added to the length of your mortgage, and some fees may be payable upfront.
How Much Deposit Will I Need
Your deposit is dependant on the overall cost of the property you want to buy and what percentage/price you can afford. Generally, you need at least 5% to be able to purchase a house. This means that you would need £12,500 if you were buying a house worth £250,000. The average deposit in the UK is 15%. The higher your deposit is, the less you will need to borrow for your mortgage.
Home Survey Costs
A Building Survey is the most thorough and detailed report that you need when thinking of buying a house. The survey is usually carried out by a Chartered Surveyor who will be a member of the Royal Institution of Chartered Surveyors (RICS).
A Building Survey is considered to be the most comprehensive service available. Prices will vary between different companies. It is essential to get a survey to assess a property’s structural condition and indicate any areas of concern. Imagine not having a survey and finding out in the future, and there was structural damage. You could end up paying thousands more than the cost of a survey.
The cost of a building survey is anywhere from £400 to £1,425, depending on the type of house survey you choose, the level of detail you require, the property value, and the location of the property.
Conveyancing costs will vary depending on the value of the property involved. Conveyancing solicitor fees range from around £400 up to around £1,500 inclusive of VAT. Legal fees for leasehold properties are more. The overall cost of your conveyancing is payable directly to the conveyancing solicitor. They usually pay for everything that is needed and then charge you after.
Estate Agent Fees
Estate Agents will charge a fee calculated on the agreed price of the property. This type of fee is called a commission. The average Estate Agent fee in the UK is 1.18%+VAT for a sole agency agreement as of 2020.
There shouldn’t be any hidden charges. Everything should be included. Beware of Estate Agents charging a fee lower than 1%, as there is probably a reason they are that cheap. It would be best if you always chose an agent that works on a No Sale No Fee basis.
If you go with a multi-agency contract, you will find that these are generally more expensive. But you will have a greater chance of getting your property seen by a wider audience. Thus increasing your chances of selling quicker.
Stamp Duty will likely be the biggest fee of all when you’re buying a house. It’s another government tax that we all must pay. First-time buyers will not pay anything up to £300,000 on properties worth less than £500,000. If you’re thinking of buying a second property, then you’ll have to pay an additional 3%. It’s definitely worth making sure how much you will need to pay as it could be a major factor when considering making an offer.
You can find out everything you need to know on the government website.
Once you exchange property you become legally responsible. You must ensure that you have Home Insurance in place at this point.
Each Insurance company will have different criteria, but on average, you can expect to pay around £110pa for buildings insurance, covering the structure and permanent fixtures and fittings of the property from any costly events. It would also be worth getting covered for content insurance.
Removal and Storage Costs
One of the last costs of moving house is to consider removal costs. In 2020 the average UK removal company costs for a 3-bed house travelling around 50 miles are roughly £1,181. This includes packing services and all materials as well of the dismantling and reassembling of furniture if needed. I would always look for a reptiple company and make sure that you are covered if anything is lost or broken in the move.
Hidden Extra’s & Things To Consider
There are always extra things to factor in when considering the true cost of moving house.
If you are moving from a rental property you must ensure that it is left in a clean condition. You may want to consider a cleaning company as you will probably have enough to deal with.
You may be downsizing or the property you are moving to may not be ready yet. It is worth doing your research and finding out how much it will cost for the duration you need. Search reptiple companies and get some quotes.
You will also need to consider whether you will need to have your mail redirected for a few months whilst you change addresses on things like your driving licence and insurance.
Phone, Broadband & TV
Moving to a new house means setting up a new phone line and broadband connection. Costs will vary depending on your location,but it is worth getting in touch with your providers to find out the costs involved.
It is worth contacting your TV provider as you may need a dish putting up at your new property.
Overall you need to transfer a lot over to your new property. My advice would be to use the opportunity and see if save any money, if you are not tied in to any contracts. It is always worth using a online compare tool, and see if you can get any good deals. Martin Lewis money saving website is always worth a look.
You will also need to think about the security in your new home, you may want to consider possibly replacing the security system and the locks. A new security system could set you back anywhere between £100 and £350 depending on the system you want.
Finding out what band your new house is in is paramount as you may be paying extra in the area you have moved too.
In summary the average cost of moving in house in 2020 in the UK is £8,885 but this will undoubtably vary from the type of property and area, to the mortgage and estate agent that you choose.
If you thinking of selling or buying your home then get in touch we would love to hear from you.