What Are The Average House Moving Costs?
With stamp duty up to £500,000 being scrapped for purchases this week our phones have been super busy with home owners and potential buyers keen to know how it affects them.
For those selling it has opened up the market to people who might not have been able to afford properties in that price bracket before. Also those properties that might need a bit of work may become a more attractive prospect as the saving in stamp duty can be used to invest back in to the home.
For those buying it is simple. There is a saving of up to £15,000 to be had!
There are of course others costs involved when buying a property so I thought now would be a good time to highlight them.
Legal Fees
Aside from the actual cost of the house and the mortgage repayments, one of the first things to do is think about the legal fees. Conveyancing companies and solicitors are the ones who focus on property.
In addition to their personal fee for dealing with the conveyancing there are also disbursements that are required for things such as property searches, land registration fee, telegraphic transfer fees and other smaller disbursements.
Potential costs: £1,000 to £1,300*
*buying only. Additional costs will be required if you are selling a property too.
Removal Companies
The chances are that you will need a removal company to help you, particularly with the big items. The cost of this will vary because companies will calculate such things as how many bedrooms, the distance between houses, and whether specialist services are required. It could be as little as £400 to well over £1,000.
Our advice would be to put a post out on the local areas Facebook group and ask for recommendations form real people. Then look at Google reviews as well as they should give you a good indication of how good a recommended company is.
Potential costs: £700
Mortgage Fees
Most people will have to obtain a mortgage to buy a house. Rates and payments will vary depending on the lender. Typically costs associated with a mortgage would be booking fees (£300) and arrangement fees (£2,000) and a valuation fee (£150 to £1,500 depending on the type of survey). However there are that many lenders out there and they are all different and some aren’t charging these kind of fees at the moment.
We would recommend speaking to an independent advisor who can find the best deal for you personally. They will know which lenders aren’t charging booking and arrangement fees and which offer free valuations. They may well have a fee themselves but if they can find you the right mortgage and save you money on arrangement and valuation fees then it is worthwhile having a chat with them first.
We work alongside a great independent mortgage advisor so be sure to call us if you want to speak with them.
Potential costs: £0
Insurance
When you’ve completed, chances are you’ll quickly get the keys. It’s an exciting time, and you’ll have packed everything, the removal van will be ready, and you probably can’t wait to get in. Something you need to do though beforehand is have building and contents insurance.
Buildings insurance covers the bricks and mortar, and contents insurance covers your belongings. The cost of this will vary because no two properties are the same, and you will have different possessions. The key is to do your research! The average costs last year for buildings and contents insurance was £163.38
Potential costs: £163
Stamp Duty
Stamp duty was required to be paid on purchasing a property from £125,000 (first time buyers were exempt up to £300,000). However, as we all know, this changed on Wednesday 8th July.
Here’s what you will be saving, providing you complete on your purchase by the 31st March 2021:
| Purchase price* | SDLT saving |
| £125,000 | £0 |
| £150,000 | £500 |
| £200,000 | £1,500 |
| £250,000 | £2,500 |
| £300,000 | £5,000 |
| £350,000 | £7,500 |
| £400,000 | £10,000 |
| £450,000 | £12,500 |
| £500,000+ | £15,000 |
*Stamp duty still applies on purchases of second homes.
Potential costs: £0
The average property price in the area is around £240,000 so the average stamp duty saving buyers will make would be £2,300.
Now, the combined costs of everything else mentioned above works out at £2,163. The saving on stamp duty is, on average, going to cover the other fees a buyers needs to pay!
If you’ve been thinking about buying a property and you have the job security then why not!
Thanks for reading
Michael
If you are looking at buying then make sure that you register with us for our Exclusive Property Alerts and find out about new properties long before they appear online!
Thinking of moving? Call the office on 01535 666031, call me direct on 07557 088460 or email me: michael@leightonsestateagency.co.uk for honest, expert and friendly advice.
