Today we outline the costs and fees associated with buying a property, so that you can budget for your next move.
Buying a new home can be an exciting prospect, but often in the thrill of the search, buyers fail to budget for some of the costs that are part and parcel of the process.
Consumer champion Which? estimates moving costs on average, £10,000 (that’s excluding a deposit), although this figure varies depending on the value of the new property.
By starting with a clear picture of all the fees you’re likely to incur, you can avoid any last-minute surprise costs.
Here’s a checklist of moving-related costs.
Stamp Duty
This is a tiered tax – the more expensive the property, the more you pay. Due to the pandemic, temporary changes are in place meaning Stamp Duty does not apply to the first £500,000 of a property purchase. This rule ends on the 31st of March 2021.
Legal Fees
The cost of conveyancing – that’s the paperwork that secures the legal transfer of property. This varies depending on whether you’re buying a freehold or leasehold property (expect leasehold to cost you more)
Tip: When you’re getting conveyancing quotes, check the final price includes VAT, search fees and Land Registry fees.
Valuation Fee
If you’re taking out a mortgage, your lender will insist on a valuation to ensure that you’re not paying over the odds for your new home.
Mortgage Fee
Some mortgage deals include an arrangement fee or an application fee (or both)
Survey Fees
Different types of surveys are available. The most basic option can cost a few hundred pounds, while the most comprehensive survey can cost thousands of pounds. We would always recommend when buying a period property to get a detailed survey, so you don’t discover costly problems in the future.
Insurance
Most lenders insist on buildings insurance as part of the terms of the mortgage. It covers the cost of repairing your home in the event of a disaster such as a flood, fire, or falling tree.
Removals
Removal costs vary depending on how far you’re going and how much stuff you have (are you a minimalist or a hoarder?) The website comparemymove.com estimates it costs £800 to move belongings from a three-bed house to a property 50 miles away. Throw in another £250 for packing and materials. You can however, look at hiring your own vans and asking friends or family to help (under current government guidelines)
Redirecting Mail
If you’re planning on redirecting your mail to your new address (not such a bad idea in this era of identity fraud), Royal Mail charge £80 for 12 months.
Butler Residential will always help to ensure your move goes smoothly. If you need any advice with calculations or questions about the moving process please get in touch https://butlerresidential.co.uk/contact-us
Copyright Butler Residential
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