Thinking of moving house? You may have already found the property you want and lodged an offer, but that is not the end of the strain on your finances. There are several further costs you will face until the move is completed.
Your first port of call if you are selling a property as well as purchasing will be an estate agent. As a vendor, you are responsible for their fees, which are normally 1 to 3% of the sale price plus VAT of 20%
The next set of professional fees you will be faced with is your licensed conveyancer or solicitor, who will usually have a set fee that you should negotiate at the outset. Legal fees are typically £850 to £1,500. There are also a number of disbursements to pay for relating to local searches carried out to check local planning issues and other problems. A VAT levy will be applied to the final bill of 20%.
Another major cost is Stamp Duty payable on homes valued over £125,000, although first-time buyers will pay nothing on the first £300,000 when the property is valued at up to £500,000.
Since 2016, there is a 3% surcharge if you are buying a second residential property above £40,000.
Before buying a new home, you will want to carry out a survey. If you are looking at property in South Wales and need a home buyers survey Cardiff offers many options that can be found online at sites such as https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-Cardiff.
You will probably be using a mortgage to purchase your new property, and fees may apply to this, such as a booking fee, the mortgage valuation costs, and even an arrangement fee that could reach thousands of pounds. Although it may be difficult to settle these fees at the time, try to avoid adding them to your mortgage as this will mean paying interest on the amount during the life of the mortgage.
Once all the steps of the purchase have been completed, you will need to arrange to move into the property.
The British Association of Removers will provide estimates for their approved firms.
The average cost is between £300 and £600, although you could carry out the work yourself. Your existing insurance may cover your move, especially if you are using a professional removal company.