The cost of moving house explained
Posted on March 5th, 2020When we think about moving home, the most obvious costs that come to mind are from buying the new house itself… but what about everything else? Here is the cost of moving house explained for those of you who are trying to outline a budget.
Stamp duty
Stamp duty is a tax that you pay upon the purchase of a home costing more than £125,000. However, for first-time buyers, this is abolished up to £300,000.
The amount of stamp duty that you pay will be based on the overall cost of your chosen home. Generally, the amount is between 2 – 12% of the property’s value, with the percentage amount rising in accordance with the cost of the home (5% would be the maximum amount on a Seddon home so long as you don’t own another property).
The deposit
A cost that most people know about is the deposit. Usually 10% of the property’s value (or 5% with Help to Buy), the deposit is the cash value that you put towards the purchase of your home.
The amount that you contribute has an effect on the interest rate that you will be offered on your mortgage, and the more you contribute, the more likely you are to be accepted for one.
The mortgage
Sometimes, there is a fee when applying for a mortgage. You can assume that this fee will be anywhere from £500 to £2,000. However, this is not always the case, so do check with your lender beforehand. If using a panel-recommended Independent Financial Advisor (IFA) via Seddon Homes, there will be no broker fee to pay, but you may still need to pay an arrangement fee with the lender.
Valuations and surveys
Valuations or surveys are arranged via your mortgage lender, and they are in order for the lender to assess how much they are willing to lend you for your mortgage. Some lenders don’t charge you for this, but if they choose to, you will be looking at anywhere from around £150 to £500.
Legal fees
To carry out the actual legal process of buying your home, you will need to hire a solicitor. This will cost you around £850 – £1,500.
Seddon Homes can recommend a solicitor for you that understands our methods, which will help to speed up the process for you.
Insurance
To increase your likelihood of being accepted for a mortgage, you’re going to need to purchase buildings insurance. Cover can vary quite a bit depending on the value of your property, so it’s best to check with your lender beforehand.
Estate agent fees (If selling)
If you’re selling your home to move to a new one, you’ll have to pay estate agent fees for them to sell your property. These fees will likely be 1 to 2% of the property value.
Moving costs
Finally, once you’ve actually dealt with the technicalities and it’s time for you to move in, you need to move all of your belongings from one home to the other. You could either hire a moving service or rent a van and simply do it yourself. The latter option would obviously be cheaper but potentially more difficult for you.
Ready to move home?
We hope that this blog has helped you to identify the real cost of moving house and therefore better plan for the big move. And if you’re still looking for your dream home, why not take a look at our new build home developments?
We have developments across the northwest and midlands, and our variety of house types is sure to offer something to suit you.
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