Moving house is one of the most stressful times in life. I know, because I have moved three times in over 10 years. Prior planning is key if costs are to be kept down. So, the next question is, what are the hidden costs? This article is based on the premise that you are buying and selling a house.
House Buying Costs
With the buying of a house, there is a tax to be paid called stamp duty. Following that, a property surveyor is involved, conveyancing, which is the handling of the legal documentation, as well as a fee for valuing, called a valuation fee. Based on an average price of a house in the UK of £218,225 the cost of buying comes to £3,271.50.
House Selling Costs
The cost of selling a house is similar. Between estate agent’s fees, conveyancing, and energy performance certification or EPC, the cost could come to as much as £3,943.33. Other costs to consider are your chosen removal company and postal redirection when combined could come to £1,236.66. All totals combined could arrive to £8,451.49.
Tip: Fees can vary such as removal costs and estate agent’s fees as these are dependent on the size of house, the property value and your removal requirements.
What is Stamp Duty
To delve deeper and understand more, lets explain what stamp duty is. This is a land tax in the UK and must be paid above a house price of £125,00 and is paid by the buyer. This tax increases according to the value of your house. It is a different system in Scotland. Their land and buildings transaction tax kicks in on all properties priced above £145,000.
Surveyors offer different packages such as a condition report, homebuyer report, home condition survey and building survey. Average costs range between £250 and £600. This is a necessary expense when buying with a mortgage but is an advisable expense otherwise as it clarifies as to what shape a property is in before a deal is done. In Scotland, such a service is for the seller to undertake, not the buyer.
Conveyancing is undertaken by a solicitor and the fees are set and are charged according to the house value, whether buying or selling. Both parties will use this service i.e. the buyer and the seller. Costs can start at £415 and go right up to £1,500. These costs vary on whether the property is freehold or leasehold. Freehold means that you own the property outright whereas leasehold means after the purchased lease expires, it returns to the landlord. Search fees and land registry fees are also applicable. This is to check all information concerning the property and the amendment of official documents.
This is just a very brief summary of some of the hidden costs involved. With any house move there is always the effort to cut costs where you can and one area is with hiring a vehicle to move your stuff. Choose a reliable company such as van hire Manchester and you can at least have control over that cost.