The cost of moving home isn’t just limited to buying your new property. There are numerous other costs that will need to be accounted for and added into your budget. Some of these may be small and will go unnoticed, whilst other higher costs may have more of an impact. In total, the average cost of moving home in the UK is £8,450. So we will breakdown the various costs of moving home so you can see exactly where your money is going.
If you’re buying a home, unless you’re a first-time buyer, you will usually need to hire an estate agent to sell your current property. Most agents will take a percentage of the property sale as payment, usually between 1% and 2.5%. Online agents, on the other hand, will usually charge smaller, fixed fee. Norfolk Property Online offers a range of packages both fixed and a low percentage option starting at just £695.
Stamp Duty, or SDLT, is a land tax that is paid when purchasing a property over the price of £125,000. It must be paid to HMRC within 30 days of the completion of the sale, which makes this an important cost to be aware of. The tax is divided into five tax bands which correspond to the price of the property you’re purchasing. For properties up to £125,000, there is no Stamp Duty. Properties priced £125,000 – £250,000 will have a 2% tax rate, £250,000 – £925,000 will be charged 5% of, £925,000 – £1,500,000 will have a 10% tax rate, and properties over £1,500,000 will have a 12% tax rate. The homeowner will pay the rate that directly corresponds to that segment of the purchase price. For example, for a house costing £400,000, the homeowner would pay 0% for the first £125,000 = £0, 2% for the next £250,000 = £5000, then 5% of the final £25,000 = 1,250, making for a total of £6,250.
Before you purchase a property, it’s often wise to have the property surveyed by a professional to ensure there are no issues with the house. If you’re buying with a mortgage, then a property survey will be required. There are different types of surveys you can get, with each costing a different amount. A basic condition report will cost around £350 whilst a full building survey will cost around £800.
Once you’ve agreed on the purchase with the properties seller, you will next need to hire conveyancing solicitors to see you through to the end. It is their job to make sure that the contracts and title transfers are handled correctly, whilst also ensuring that the client is meeting all legal obligations and is protected during this process. Both the buyer and the seller will each need to hire a conveyancer. The price can vary depending on the value of the property but will usually cost between £500 and £1,500. Whilst additional fees, such as search fees and land registry fees may be added.
On the day the contracts are exchanged, you will need to provide your solicitor with a deposit for the property. It is at this point that you will be committed to purchasing the property. Usually, deposits will be 10% of the property purchase. However, they can vary from 5% up to 50%. Whilst this isn’t an additional cost, it is an important cost to be aware of. Because let’s face it, we can’t all afford to have a spare £20,000 lying around the house.
One of the final stages of moving home is the physical process of moving home. This will involve hiring a removal company to help you shift your belongings. Prices for this will vary depending on the company you go with, the volume of the belongings that need moving, and the distance they have to be moved. Having special care items or restricted access to the property can also impact the price. However, you can typically expect to pay between £400 and £1,500 depending on these factors with an additional £1 per mile that you are traveling.
If you’re thinking of buying or selling a property, would like to know the value of your property, or would like to know more on the cost of moving home, get in touch! We can be reached on 01603 300900, by email at [email protected], or pop in and see us at De Vere House, St Faiths Lane, Norwich, NR1 1NE.