Moving home can be stressful, time consuming and above all, expensive. But how much does it really cost to buy a new home and move in? We outline the main fees and expenses you should expect...
1. Mortgage
Not only is this probably the largest debt you'll accumulate, you can also expect some extra charges when you take a mortgage out.
- Mortgage valuation - carried out by your lender, this determines the value of the property for loan purposes but doesn't cover the state of the property
- Mortgage arrangement fee - often charged by a lender or broker for arranging your mortgage
- Mortgage exit fee - you may be liable to pay an exit fee if you're remortgaging, but this practice has hit the headlines recently and you may be able to claim it back
Tip - shop around and compare mortgages on the market for special deals, including no-fee offers.
2. Stamp duty
This is a tax payable on property purchases. Refer to the stamp duty bands alongside to work out how much you'll be charged.
Tip - due to rising house prices it's highly likely you'll need to pay this, so ensure you factor the cost in.
3. Conveyancing
Conveyancing is the legal side of buying a property. Your solicitor will handle all the paperwork and administration related to the purchase of your new home.
Tip - it can be tempting to put on your legal hat and manage this yourself, but it is a complicated process. You may be better off leaving it to the professionals.
4. Local land search
The search, carried out by your local council, will provide you with information relating to charges or responsibilities you'll be taking on when you exchange contracts, as well as possible development restrictions.
Tip - expect higher fees in London.
5. Land Registry
When property or land changes hands, you need to register this with the Land Registry. Use the band guide to the right to work out how much you'll need to pay.
Tip - check out the Land Registry website for more information.
6. Survey
A property survey will give you peace of mind that there are no problems with your new property. A homebuyer's report is briefer than the full building survey, only outlining the areas that need attention. This usually suffices if the property is modern and hasn't had any building or restructuring work. A building survey is a more comprehensive inspection of a property.
Tip - a mortgage valuation survey alone won't uncover potential problems with the building. A good survey will save you money in the long term should there be any issues.
7. Storage
Not all property transactions can be perfectly timed, in which case you may need storage. A hundred square metres roughly equates to 200 boxes of goods.
Tip - get quotes from several storage companies and see what special offers you can get. Many offer free days or weeks.
8. Removals
The final stage - moving day. The cost of hiring a removals firm depends on the size of your house, the distance you're moving and how involved you want the removal company to be.
Tip - hire a van and do it yourself. We got a quote for £130 a day from van hire company Sixt. Prices are cheaper on weekdays rather than weekends.
9. Selling a property
Read our guide to the real cost of selling property.
Useful links
Example costs
- Average mortgage value: £111,000 (CML)
- Mortgage valuation: £350
- Mortgage arrangement fee: £575
- Mortgage exit fee: £200-250
- Stamp duty: £0
- Conveyancing: £389
- Local land search: £150-250
- Land Registry: £150
- Survey: £250-350 (Homebuyer's report); up to £1,000 (Building / Structural survey)
- Storage: £36 for 100 square metres (one week)
- Removals: £300-400 (local); £600-700 (50 mile relocation)
These are average calculations based on buying a property worth £158,946, the average price of a house in the UK according to the Land Registry (December 2008 figures). The price of a first time buyer's property is £140,857, so you should adjust these calculations accordingly.
Stamp duty bands:
- Properties under £175,000 - no stamp duty charged
- £175,001 - £250,000 - 1%
- £250,001 - £500,000 - 3%
- Properties over £500,000 - 4%
Land Registry bands:
- Properties up to £50,000 - £40
- £50,001 - £80,000 - £60
- £80,001 - £100,000 - £100
- £100,001 - £200,000 - £150
- £200,001 - £500,000 - £220
- £500,001 - £1,000,000 - £420
- £1,000,001 and over - £700
Useful links
- Estate agents - Find local estate agents in Great Britain
- Storage - Find local storage for your goods
- Removals - Find removal companies in Great Britain
Comment on this article
We want to hear your thoughts on this article. Do you have your own story to tell? Join in the discussion by leaving your comment below.
ADVERTISEMENT
By comparing gas and electricity plans you could save up to £350 a year on your energy bill. Simply enter your postcode and a few details and the uSwitch energy calculator will tell which plans are the cheapest for your needs.
Make sure you're getting the best home phone deal for your area - compare prices, call plans and customer service for all suppliers. You could save up to £140 in the first year on your phone bills.
Connect to the right broadband deal for you. The uSwitch broadband calculator will work out what sort of package you need, then compare suppliers to find the best on the market - from high speed deals to quadplay bundles.
The digital switchover, when analogue TV services in the UK are switched off, has already begun. Everyone needs to upgrade and switch to digital by the time the switchover reaches their area - find the best value solution here. It's easier than you might think.
Profile
Find out more about your neighbourhood including information about Family Income, Interest in Current Affairs, Housing, Education, Children and Satellite TV.
ADVERT SECTION