Buyers - Cost Of Moving House

Solicitor’s fees, mortgage fees, stamp duty and other costs can add up when buying a home. We take a look at all the fees involved in a house or flat purchase.

It’s recommended to keep around 15% of the value of your new house aside for any additional costs.

What do these look like?

Solicitor’s fees

These are one of the biggest extra costs when buying a home. Most people hire a solicitor to handle the legal aspects of buying a home, otherwise known as conveyancing. Fees can vary, but allow up to £2,000. Some solicitors charge by the hour, while others will do the job for a set amount. They may even calculate their fee as a percentage of the property you’re buying.

We work with 2 company’s but you are welcome to use your own, these are:

What they usually cover is:

Conveyancing

  • The drawing up of contracts between you and the seller
  • Organising your stamp duty payment
  • The payment transfer for your new property

Searches

  • Your solicitor will also commission your local authority searches.
  • This includes checking for things like flooding risk, if the property’s near a contaminated area or if there are any plans for new road developments.
  • Search costs are usually included in the solicitor’s fee. But if not, they should be around £200 to £300.

Land Registry documents

  • As part of the conveyancing process, your solicitor will check the details of the previous owner, confirm the property boundaries and if the home sits on any public rights of way.
  • They will also handle the deeds to your home. This means registering them in your name.

Mortgage Costs

Other than paying this back, you may have to pay a “Booking fee”, this could be up to £200.

Arrangement fee, this is a fee to set up the mortgage which can be between £1,000 to £2,000. This is a significant cost but can often be added to the mortgage. But remember, you will then have to pay interest on it.

Valuation fees, Lenders will need to value the property you are buying, to make sure it’s worth what you want to pay for it. This may not be charge by every Lender but this cost could be around £200, if you need a RICS surveyor, this cost could be between £150 to £800.

If you need help with the cost of mortgage, it’s worth working out your monthly repayments. Our Partner Mortgage Advice Bureau mortgage calculator can help you understand what you’ll pay once you’re in your new home.

 

Find out more

Survey costs

It’s always worth getting a survey done!

This could stop you making a big mistake if it uncovers a lot of problems or could end up saving you thousands in the long run.

There are three main types of survey to choose from when buying a home.

Level 1 survey:

A Condition Report costs around £400 – £950

A Condition Report is a basic survey that gives an overview of the property’s overall condition. It reports any big issues but doesn’t go into detail.

Level 2 survey:

A Home-Buyer Report costs around £400 – £1,000

A Home-Buyer Report is suitable for the majority of modern, conventional properties that are in a reasonable condition and less than 50 years old.

Level 3 survey:

A Building Survey costs around £600 – £1,500

A Building Survey is the most comprehensive survey available and provides an in-depth inspection, this can be particularly useful for older homes, they’re more expensive but could well be worth the cost.

Stamp duty - How much may you have to pay

How much you pay depends on whether the land or property will be used as a residential property, whether you are eligible for relief or an exemption.

For example, if you’re buying a residential property there are different rates of Duty:

  • you’re a first-time buyer
  • you already own a property and you’re buying an additional property
  • you’re not a UK resident

Thresholds

  • 250,000 for residential properties – If a second Property there would be a cost.
  • £425,000 for first-time buyers buying a residential property worth £625,000 or less.

You can use mortgage advice bureau Stamp Duty calculator to work out how much tax you’ll pay, please follow the link:

https://www.mortgageadvicebureau.com/mortgage-calculators/stamp-duty-calculator/

When to pay

Your solicitor or conveyancer, will usually file your return and pay the tax on your behalf on the day of completion. They’ll then add the tax to their fees.

Removal costs

Costs of removals can vary depending on several factors including

  • Property type, flats on higher floors with many stairs will cost more
  • Property size, you may need bigger vehicles or more than one.
  • Special items, such as pianos, where either the value of size and weight make them difficult to deal with

You could do it yourself, but remember the professionals should be insured in the event of breakages.

Most people take the opportunity to declutter and will save money by not moving items and by making a few trips to the tip.