Posted on
Friday, September 27, 2019
Moving home can be an exciting yet taxing experience, especially as there are many factors to consider during the process.
And, while there are ways to mitigate the stresses of a move – such as packing weeks in advance and making an in-depth checklist – it’s always worthwhile to have a budget plan to keep on top of costs.
A recent study from price comparison website MoneySuperMarket revealed that Brits spend an average £670 in additional costs every time they move. This is on top of estate agent fees, deposits and legal fees they face when buying.
With home movers in Britain moving house an average 5.1 times, the additional outlays – including removal vans, storage and cleaning fees – total approximately £3,417 over a lifetime.
Buying household items, such as utensils and bedding, topped the list of priciest ‘extra’ outgoings at 50%, followed by paying for a postal redirection service (39%), changing service providers (32%) and installing new technology such as Wi-Fi (31%).
Over a fifth (22%) have also had to pay for a removals van to help with the move, while one in 10 (12%) have paid for professional storage between properties.
The numerous costs involved in the moving process is something you will need to be prepared for, so with this in mind, here at Keys & Lee, we outline the most important financial decisions to make before the big move.
Mortgage fees
This is a charge made by your mortgage lender for setting up the mortgage, including a booking fee of between £99 and £250, an arrangement fee of up to £2,000 and a mortgage valuation fee of between £150 and £1,500.
It’s advisable that you save up and pay before you move to avoid interest rate charges on repayments.
Legal costs
You’ll need to instruct a solicitor to ensure the legal completion runs smoothly. Local searches done by your solicitor can cost between £250 and £300, but different solicitors will offer different fees.
Generally, legal fees are between £500 and £1,500, including VAT at 20%, so consider shopping around to get the best possible price.
Valuation and survey fees
A mortgage valuation is usually included in your mortgage plan, with the cost based on the price of your desired property. Typically, though, it can set you back between £150 and £1,500, as mentioned above.
Once the valuation goes through, the property will need to be thoroughly inspected by a private building surveyor. A full survey can cost you between £250 and £600.
Stamp duty
As a homebuyer, you will need to pay a stamp duty when the sale of the property goes through. The tax is charged on houses worth more than £125,000, with the rate charged depending on the purchase price of the property.
If you are a first-time buyer, however, there is no stamp duty required on the first £300,000 for properties priced up to £500,000.
Removal costs
Removal companies can charge £50-£60 per hour on average, with a two-hour minimum charge for a local move. Long distances, however, are charged at a fixed price and could be anywhere between £450 and £1,000.
Keep in mind that prices peak on the weekends. To reduce costs, consider hiring your own van for a day or two and doing it yourself, or asking family and friends for assistance.
Change of address
You will need to change your address on a host of documents before the chaos of the move begins. Alternatively, Royal Mail’s Post Redirection service allows you to redirect all bills or other mail for three months (£34), six months (£47) or 12 months (£67).
While there are many components of the moving process to consider, sticking to a strict budget will allow you to break down all costs and fees more effectively as well as limit the stress and hassle. For some extra help on preparing for your next move, why not check out our home moving checklist?
For more information on how we can assist you through the selling and moving process in Romford and the surrounding areas, please get in touch with us on 01708 766 241.
If you happen to be selling before you move, you can also request a free instant online valuation to see how much your home could be worth on the current market.
