What is the true cost of moving home
As if getting a mortgage wasn’t hard enough; one then has to look at all the incidentals and hidden costs so often overlooked in all of the excitement of acquiring your new property! As much as we applaud anyone embarking on this exciting venture we think you should also be aware of the facts so below is a list of essentials to consider about when thinking about buying or selling your home:
Mortgage Arrangement Fees. There is usually an arrangement fee to pay to a lender for most mortgages; and beware because some will be non-refundable, even if the purchase of the house falls through. Mortgage arrangement fees all vary but expect to pay in the region of £1,000.
New Home Valuation Fee. These vary according to which lender and what the purchase price is. Budget for the lender to charge you about £300. The valuation is to check whether this property actually exists and is enough security for your loan. See our Home Movers Tools
Legal and Conveyancing Fees. Lenders will sometimes contribute to your legal fees, but you would have to use a lender approved solicitor. However if you choose pay for your own Conveyancing, it may pay to shop around and compare prices. Typically depending on the purchase price you could expect to pay between £500 to £1000. See our Solicitors section
Stamp Duty Tax. This is applied to any property bought or valued for more than £125,000 the percentage you pay to the taxman will depend on the price. See our Stamp Duty table
Removal Costs. For some of us, our Worldly goods could be fit into a suitcase, but if you are like me you will need to employ the services of a good remover. Typically you might pay £100 for a small local move and £500/£1000 for a National move. Make sure you shop around for a good price and make sure that they carry enough insurance to cover the job.
Home Maintenance and Repairs. Always put aside some cash to cover you for property maintenance and unexpected repair bills. From a dripping tape to a blocked gutter, expect the worst! Your new home may have been repaired by a complete incompetent home “DIY buff”.
Moving In. Last but not least what about the small things in life like a light bulb or door mats? If you are renting you may also need to buy furniture. Here are just a few things to consider; toilet paper, alarm code, all the keys, warranties, service agreements, carpets, lawnmowers, you get the idea…! In other words do not be too quick to over-look the small print.