So, to help avoid any nasty surprises, here are 10 costs to factor in before you move…
1. Conveyancing fees
This is the legal process involved in buying a property and the amount you need to budget for depends on both the value of the home you are buying and the level of expertise you require.
The conveyancing work will need to be carried out either by a solicitor or a conveyancer, and while the latter is often a more budget-friendly option, a solicitor will generally have more extensive legal expertise.
2. Survey costs
There are a few different types of survey to choose from and prices range from a few hundred pounds to well over £1,000.
Speak to a surveyor to work out which survey option is the right one for you, and try not to let cost cloud your judgement. Getting the wrong survey could end up costing you much more in the long run.
3. Stamp duty
This is a tax on land and property transactions that must be paid if you are buying a property valued over £125,000. The tax rates are tiered and the more expensive the property, the more you’ll pay in tax.
Here’s a quick breakdown:
Tax is due at 2% on the portion of the property between £125,001 and £250,000 and then 5% on the value between £250,001 and £925,000.
Tax is due at 10% on the portion between £925,001 and £1.5million, and anything above £1.5million is taxed at 12%.
4. Leasehold fees
The majority of freeholders will appoint managing agents to take care of communal areas of leasehold properties.
As a leaseholder, you will usually be charged an annual fee to cover maintenance service charges, buildings insurance premiums and ground rent. The cost of these fees can vary widely and can change each year, so be sure to factor this in to your budget.
5. Estate agent fees
If you’re selling a home, you’ll also have to pay an estate agent fee. This will vary from agent to agent (it could be anything between 1.5% and 3.5% of the property’s selling price) so get several quotes before deciding who to go with.
6. Removal fees
If you’re hiring a professional removals firm, you can expect to pay anything upwards of a couple of hundred pounds. Exactly how much you pay will depend on how much you have to shift, how far you’re moving to and the day of the week you’re moving on (Fridays and Saturdays cost more).
7. Redecorating costs
Unless you’re moving into a home that is already kitted out exactly as you’d like it, you’ll need to be prepared to do a bit of decorating. And while this doesn’t have to cost the Earth, be careful not to underestimate how much this could set you back.
8. Agency fees
If you’re renting you’ll be charged a fee by the letting agency. This could incorporate a fee for admin, credit checks and holding deposits. It’s also likely to include a certain number of weeks’ rent.
Always check these fees before you sign on the dotted line.
9. Residents’ parking
Find out what the parking situation is at your new home. If you don’t have private parking, you may have to pay for a parking permit to park on the street.
10. Home insurance
Home insurance is a good idea whether you’re buying or renting. If you’re buying, you’ll need buildings insurance to cover the cost of rebuilding your home after a fire or some other disaster, and contents insurance to cover your belongings against damage or theft. If you’re renting you’ll only need to take out contents cover as insuring the building is the job of your landlord.
Take a look at our cost of moving calculator to help you budget for these costs.
Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.