Of course, no two removals are the same and there are many variables that can be adjusted to suit your circumstances. However, once you have an idea of the various costs associated with moving, you can begin to work out roughly how much your removal is going to cost.
Purchase Price And Stamp Duty Band
The largest single cost after the price of the property is Stamp Duty (also known as Land Transaction Tax in Wales and Land and Buildings Transaction Tax in Scotland). Unlike the price of the property which is fixed, the amount of Stamp Duty that you need to pay is calculated by splitting the price of the property into bands, and applying a rate to each band. There are different rates of Stamp Duty for England and Northern Ireland and for Scotland and Wales, and for first time buyers. For example in England and Northern Ireland there is no charge on the first £125,000 of a property, 2% on the next £125,000 and then 5% up to £925,000. There are higher rates on parts of purchases over £925,000. The current rates and relief available can be found on the HMRC website, and also on the HMRC website for the relief available for first time buyers, including the amount they can buy for with no Stamp Duty to pay at all.
Buying And Selling Together
However, if you are buying and selling at the same time, then the cost of the legal work is likely to double. Furthermore, you will also need to pay the estate agent’s fees for the sale of your current home. This is typically in the region of 1% to 2% of the sale price of your current home plus VAT, if a high street agent is used. Online estate agents charge a fixed fee and this can be several hundred pounds less than a high street agent for similar services. A purchase of a property in which there is no related sale will typically cost less for the legal work and may complete more quickly as there is less for the other party to do.
Location Of The Property
For searches, a solicitor’s fees and an estate agent’s commission, costs can be higher in the London and South East regions due to higher property values and possibly higher local authority search fees. In a busy city such as London a search for mining activity or a flood search may be required for a flat, but these are not required for properties in rural locations. Your solicitor can tell you which searches are required for your property address.
Survey Level You Choose
The cost of a survey varies a great deal, depending on how much information you require about a property. A basic Condition Report would cost approximately £300 – £400 + vat and highlight obvious problems with a property. A more in-depth HomeBuyer Report could cost anywhere from £400 + vat to £1,000 + vat, depending on the surveyor, and give greater detail on the overall condition of a property and its value. A full Building Survey could cost anything upwards of £600 + vat to £1,500 + vat or more in extreme cases, however this type of survey is usually more suited to older, unique properties with potential hidden problems that may not be readily apparent. More information on surveyor fees when moving home is detailed on the Royal Institution of Chartered Surveyors website outlining what you can expect to find out from each type of survey.
Mortgage Related Fees
Additionally, lenders have their own charges on top of your deposit and repayments. These may include an arrangement fee (up to £2,000 in some cases) and a valuation fee (usually £150 – £300) which may be waived as part of the mortgage offer. Your broker may also charge a fee for his services (up to £500 in some cases) although some charge nothing at all. We explain further mortgage fees and charges on this link from the Building Societies Association. These are typically optional and can be added to the loan or paid in full prior to the completion of your home purchase.
Removals Based On Size And Access
In addition to the costs listed above, the cost for removals of your furniture and other belongings will depend on the size of your home, the distance that it will need to be moved, and the access to both properties. Local removals for two or three bedroom houses can cost from £600 to £1,200+VAT for a full removal service, although this will need to be increased for removals that involve long carries from the removals van, or where there is no parking close to the front door of the property. Flats in city centres with stairways may also incur a surcharge for removals by truck, as opposed to smaller removals vehicles that can negotiate narrow streets more easily. In addition to the removals cost, you may also require the services of a packing company, storage for a short period of time, or for the removal of unusual items such as pianos or antique furniture. It is therefore advisable to obtain quotes from 2 or 3 different removal companies, either in writing or following a viewing of both properties.
A Worked Example At £300,000
We have assumed that the seller is also purchasing a property of approximately £280,000. In this scenario there would be a total of £5,000 in stamp duty to pay on the purchase of the new property. The cost of the solicitor for both the purchase and sale of the properties would be approximately £2,600 (including the cost of searches). The cost of a HomeBuyer Report would be approximately £550, in addition to the mortgage arrangement and broker fees of £1,300. The cost of the estate agents for the sale of the seller’s property would be approximately £4,000 + VAT. The removals cost for the purchaser’s property would be approximately £900. This therefore totals approximately £14,350 on top of the purchase price of the new property. Use a moving house cost calculator to create a list and calculate the costs for the specific purchase price, survey and other costs of your new home.
When Each Cost Falls Due
When do the costs fall due? Typically the costs of a survey and the mortgage valuation/arrangement fee are paid by yourself as part of the price of purchasing a home shortly after the offer has been accepted and the mortgage application has been made. The majority of the cost of your solicitor’s conveyancing work and your deposit are paid on exchange of contracts, followed by the stamp duty and cost of removals on completion of the purchase. In addition to the cost of removing your goods from your current home to your new home, if you are also selling a property through an estate agent the cost of the agent’s fees will be paid out of the proceeds of the sale of your home.
The real cost of moving house – working out your budget using all of the above points against the purchase price of your chosen property, the location of the property and your situation within a chain – is what actually matters when trying to work out the cost of moving house and trying to budget for it.
