If you are planning on moving home in 2019, you’ll need to make sure you have enough money saved up to cover the costs of relocating. Matt Stevens, Director of mortgage broker The Mortgage Genie, knows the ins and outs of moving home and he’s here to explain how much it might cost you.
No one likes the process of moving home. It can be a long, drawn out process, and there is plenty that can go wrong along the way. But, whether you need more space for your growing family or are moving to be closer to work, sometimes relocating can’t be avoided. The house buying process usually takes two to three months to complete, with the various costs involved soon adding up.
With the average cost of a house move in 2018 being £10,210, according to My Big Move, it’s wise to create a plan of what the process might cost you ahead of time. For this reason, I’ve put together this short guide to help you figure out how much you might need.
Navigating the legal ins and outs, conducting searches, and keeping track of contracts, conveyancers take a lot of the hassle out of your house purchase. Conveyancers act on your behalf throughout the purchase, and typically cost between £500 and £1500, depending on the value and size of the property. They will usually offer local searches on top of this, which can cost up to £300 depending on which ones you choose and which area your property is in.
Though they often get a bad reputation, estate agents provide a vital service to those looking to buy and sell a home. They will typically charge you between 1% and 3% of the price your house sells for. To save money, some sellers may choose to advertise their home themselves through independent websites, but this means you will be the one to arrange viewings and show potential buyers around the house. Agents are often prepared to be flexible, so make sure to haggle!
Stamp duty land tax (SDLT)
Whenever you buy a property in England and Northern Ireland, you will have to pay SDLT, a tax paid to the government for changing ownership documents. If the residential property you are purchasing is less than £125,000, you will be exempt from SDLT. First-time buyers are also exempt from SDLT when purchasing properties less than £500,000. Above these thresholds, the amount of SDLT you must pay increases in bands. To work out how much you will have to pay, you can use the SDLT calculator.
Valuation and survey
As part of your mortgage approval, the bank will require you to pay for a valuation survey. This is essentially when the bank checks to see whether the value of the property is high enough for the mortgage they have offered you. These can cost from £150 to £1,500, depending on which lender and product you go for. It is also wise to conduct your own survey on the property by a RICS registered chartered surveyor. They will be able to point out any structural issues with the property as well as anything that may cause you trouble down the line. Depending on what survey you go for, you could pay anything from £200 to £800.
With all this other expenditure, it can be easy to overlook the cost of moving itself. If you plan on using a removals company, the cost will be determined by the distance you are moving, how much stuff you have, and what day it is. Weekends typically cost more than weekdays, while moves at the end of a calendar month also tend to be more expensive. The average cost of hiring a removals company is £1192.67, according to Compare My Move, so it can often work out better to simply hire your own van for the day — although you’ll have to be prepared for some heavy lifting.
Moving home can be a stressful time for anyone but, if you have everything in order ahead of time, the whole process will go a lot smoother.