Moving home can be one of the most exciting times of your life, but also one of the most expensive, with many prospective homeowners still underestimating the costs associated with moving.
The average cost of moving in the UK is around £8,885 (excluding the deposit), However, this can vary dramatically depending on where you live. That’s why we have looked at the true cost of moving in to help you avoid any unwelcome surprises.
Deposit & Stamp Duty
The two main costs people associate with buying a house are – the deposit and stamp duty
The typical deposit will be between five and ten per cent of the cost of the home you are purchasing.
However, many people can get caught out by the cost of stamp duty land tax.
Stamp duty is required on all property purchases unless you are a first-time buyer purchasing a property under the value of £300,000. For everyone else, the cost is dependent on the value of your property, as for more expensive homes the rate will be higher.
The current rates can be found on the Government website at https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
A mortgage broker will help advise you through the thousands of products on the market to ensure you get the right mortgage for your situation.
All brokers are paid a procuration fee from your mortgage provider. Some will charge you a fee for advice, which can range from about £300 to £750. However, most brokers will offer an initial discussion free of charge.
Valuations and Surveys
Homebuyer surveys are a common method of detecting any problems that are likely to arise further down the line. Whilst they are not compulsory they are useful for highlighting any future issues with the property.
Surveys range from Basic condition reports which cost around £250 to £300, to comprehensive building surveys which could cost up to £2,000 depending on the size and age of the property.
Your mortgage lender may also want to carry out a valuation to make sure the property price is realistic, fortunately, many lenders don’t charge for this service.
When buying a house, a solicitor or a licensed conveyancer is required to handle all the legal aspects of the purchase.
Solicitors and conveyancers will help with contacting the local authority to check for any planning issues that could affect you and register your ownership of the property with the government.
Legal fees tend to be between about £800 and £1,500 and it is best to compare prices as you may be able to save money by using a different legal firm that originally planned.
Buildings insurance is a necessity when purchasing a home, most lenders won’t offer you a mortgage until you show you’ve got it and you can not complete without it. The insurance covers you for any damage to the structure of the building that could affect its value. You need to make sure the policy would pay out enough money to rebuild the property if it was destroyed.
It may also be wise to consider contents insurance and life insurance which are not compulsory but will protect you should the worst happen.
When it comes to the day of moving house, you need to think about how you will move your possessions. The average removal cost range from £300-£600, although you could rent a van do it yourself with the help of friends and family which could save you money.
Extra Moving Day Costs
There will be several tasks that you need to sort before moving in ready for your arrival, these include sorting out your utilities, broadband, council tax and postal redirection.
Original Source – https://www.barclays.co.uk/mortgages/guides/real-cost-of-moving/