Cost Of Moving
Moving house can be an expensive business! From estate agents’ fees to conveyancing and surveys, there’s a great deal you have to budget for.
We’ve put together a handy guide to help you keep track of your outgoings to help ensure you can handle your move financially.
That way you may have a few pounds left over for a bottle of bubbly once you’re settled in your new house!
So carry on reading to find out exactly what everything should cost you, and how you can save some money by being shrewd!
ESTATE AGENTS
Cost: 1% - 3% of purchase price
Some estate agents charge more than others, so make sure you find out their fees before you sign a contract. In London, fees can be far higher – often tipping the 5% mark, so be prepared to pay more. Some estate agents may offer discounts if you buy more than one service from them, so be sure to ask.
Since you’re dealing with significant amounts of money, you should ensure you choose an estate agent that’s registered with the National Association of Estate Agents (NAEA) or another professional body. In addition, make sure you deal only with estate agents registered with the Property Ombudsman. In the event of a dispute over fees, you’ll have a dedicated avenue for redress.
And remember, you don’t necessarily have to use an estate agent to sell your property. Most people do as it simplifies the process considerably, but if you’d rather not, there are several websites online that allow you to list your property privately. Estate agents are quick to point out the dangers of doing so, for example the potential for under pricing your property or having to deal with time wasters.
HOME INFORMATION PACKS
Cost: £199 - £299
Home Information Packs, first introduced in 2007, must be provided by the seller to the buyer and provide a range of information about a property. It is a legal requirement to supply a HIP and your property cannot be put on the market without one. However, once you’ve got an HIP, it remains valid for as long as your property remains on the market although your local authority searches may need renewing after 3 months.
The idea behind the HIP is to allow potential buyers to receive full information regarding a property before they move further along the buying process. This helps prevents sales falling through as there are no last minute surprises where the buyer finds out something negative that causes them to withdraw their offer. HIPs provide information such as a property’s energy performance certificate and its sustainability, along with more basic details such as evidence of title.
It’s best to search online to find the best deal for HIPs; there are many sites available that can give you competitive quotes from major HIP providers in your area, so take advantage of these free services to guarantee yourself a good deal.
STAMP DUTY
Cost: 0% - 4% of purchase price
Stamp Duty Land Tax (SDLT) is charged on all property and land transactions in the United Kingdom. The amount you pay depends on the price of the house you’re buying; full details are displayed below.
Up to £125,000 0%
£125,000 - £250,000 1%
£250,000 - £500,000 3%
Over £500,000 4%
Additionally, those that live in an area designated by the government as ‘disadvantaged’ only have to pay stamp duty on properties bought for £150,000 or more.
CONVEYANCING
Cost: £200-£750 (buyer), £200-£800 (seller)
Conveyancing is the legal transfer of property from one person to another. When buying or selling a house it is essential the sale is conducted legally and above board. Some people try to do their own conveyancing, but the Law Society recommends it is always carried out by qualified solicitors who are insured and trained to make the process as hassle-free as possible. Make sure you get at least three quotes in writing before you instruct a solicitor, as prices vary depending on the relative experience and location of the firm.
You may or may not be able to negotiate on the price; busy solicitors may refuse as they know they will find other customers. Less prominent firms may be willing to offer a discount.
SURVEYING
Cost: £250-£500 (Home Buyer’s Report), £350-£1000 (Buildings Survey)
If you require a mortgage (and most of us do!), your lender will mostly likely require a surveyor carrying out a valuation which is a quote on the value of your house based on its condition and structure. A Home Buyer’s Report is more in depth – covering the basic condition of the property and areas that need urgent attention, and the Buildings Survey is an extensive survey of the property you’re looking to buy.
Your lender will most likely have a preferred surveyor; if you use them you’ll probably receive quite a substantial discount. Mortgage valuations may only cost you £180-£300 if you go through your lender. It is unlikely that you will see the detailed valuation, but just the price at which they value the property. If you wish to see a report on your property you will need to employ the surveyor directly for a Home Buyers Report or a Buildings Survey.
If you choose your own survey make sure they are registered with the Royal Institution of Chartered Surveyors.
A Building Survey can be useful for your peace of mind, as it will identify areas that need immediate attention and those that can reasonably wait, along with detailed photos and in-depth information. The report can often be used to help with negotiations on the selling price.
MORTGAGE ARRANGEMENT FEES
Cost: £200 to 1% of property value
Lenders will often charge a mortgage arrangement fee which serves to cover administration costs. For some lenders this will be a few hundred pounds, whereas for some it can reach up to 1% of the property value, which can be a significant sum. The fee will generally depend on the type of institution you’re borrowing from and the cost of your property. Those looking for a sizeable mortgage (above £200,000) should expect to pay higher mortgage arrangement fees.
Homeowners have two main options when it comes to paying mortgage arrangement fees. If the fee is sizeable and they have limited cash assets they can ask for the fee to be added to the mortgage i.e. if your mortgage is £100,000 and your fee is £500 your total repayable mortgage will total £100,500. Alternatively you can pay the fee off with cash immediately.
REMOVALS
Cost: £200-£1300. Quotes will depend on the volume of your possessions and where you are moving to.
Removals quotes are dependent on several factors: the distance between the properties, the time spent in packing your belongings, and the quantity of your possessions. You can reduce the amount you spend by preparing early and packing boxes yourself. Then your removals company just has to load your belongings into their vehicle and start driving. At the other end, having friends on hand to help you move boxes around may also cut costs as your removals company will just have to unload the boxes.
Some homeowners with little furniture opt to move their belongings themselves. However, unless you own a van or can get your hands on one this will be very difficult to achieve in a car. Hiring a van can be relatively expensive for the small time period you’ll need it. Plus, you must factor in petrol and insurance (which can often be included in quotes for removals).
Don’t forget to buy your packing materials in bulk. Your removals firm may be able to supply most of them but you can get some very good deals by searching online. Most people underestimate how much they’ll need so make sure you buy enough. And don’t forget the little extras, like box pens and furniture covers to protect your belongings en route.
STORAGE
Cost: Depends on location and amount to be stored. £80-£110 (fortnight), £500-£750 (3 months)
You may not need to use a storage solution if you’re able to move straight out of your old house and into a new one. However, if there’s a gap between completion dates or if there’s a last minute complication you may have to put your possessions into storage for a set or indefinite amount of time until your new home is ready to move into.
The most important thing to do is shop around when you need storage. There are well known companies who supply good quality solutions but there are also local firms who may be able to meet your needs at a fraction of the price. If you live in a large city, you may want to take a look at companies based slightly outside your area to get a cheaper price.
Another issue is insurance. Some companies offer insurance as part of their packages but it can be significantly more expensive than if you phone an insurance company directly. Get as many quotes as you can. Check out any special offers posted by the larger storage companies – some may include insurance deals.
Finally, don’t buy your storage boxes and accessories through the storage company. They are likely to be overpriced; get them either online or from the supermarket.
MISCELLANEOUS EXTRAS
Cost: £300-£1500
The above costs are the standard required costs associated with moving house. However there are always little unavoidable extras that bump up the price, so make sure you budget a portion of money for miscellaneous jobs, supplies and emergencies that you may be otherwise unprepared for.
Examples of miscellaneous costs include:
-A skip so you can purge your belongings
-Takeaways whilst you’re packing boxes and on your first night in the new house
-Vet’s fees if your cat or dog finds the move distressing
-If your friends are helping you move, you may want to pay their petrol costs
-Toys for your children to keep them happy whilst you’re rushing about
-Curtains and soft furnishings for your new house
One of the biggest unexpected moving costs is new white goods. If you have a built in fridge or freezer at your old house you may be unable to move it, or you may have arranged to leave it behind as part of the sale. Alternatively you may arrive at your new house and find the dimensions are too large or small for your new kitchen.
TOTAL COST OF MOVING
Below you’ll find two examples of total moving costs for different properties.
Type: 4 bedroom detached house
Cost: £275,000
Location: Country
Action: Selling
Estate Agent’s Fees: 2% of £275,000 £5,500
Home Information Pack: £250 £250
Stamp Duty: 3% of £275,000 £8,250
Conveyancing: £650 £650
Surveying: £250 (HB Report) £250
Mortgage Arrangement Fees: £600 £600
Removals: £800 + £100 materials £900
Miscellaneous: £1000 £1000
TOTAL: £17,400
Type: 3 bedroom semi-detached house
Cost: £150,000
Location: Major city, not London
Action: Selling
Estate Agent’s Fees: 2% of £150,000 £3,000
Home Information Pack: £199 £199
Stamp Duty: 1% of £150,000 £1,500
Conveyancing: £500 £500
Surveying: £250 (HB Report) £250
Mortgage Arrangement Fees: £300 £300
Removals: £650 + £100 materials £750
Miscellaneous: £700 £700
TOTAL: £7,150