House prices have risen remarkably in Kent and the South East recently and so it is more important than ever to understand the other fees involved in moving home. When you buy a property the cost to move house is more than the price you pay for the property, there are many more fees and charges that you need to budget for. These fees can quickly add up and so you should account for them before you agree your sale and mortgage. To help you with this we have compiled a list of charges you should consider when moving house, everything from mortgage fees to house removal costs.
All house price figures were obtained from Zoopla using their Zed index and are accurate as of 21 October 14.
Zoopla currently estimates that the average house price in Kent is now in excess of £278,000 and has reached the previous highs set before the economic crash in 2008. This means that the deposit requirements for your mortgage are also increasing. Listed below are the average prices and illustrative deposits you may need for a variety of example properties currently available in Maidstone, Ashford and Canterbury.
You will be acutely aware of the costs and long-term financial responsibility a mortgage brings – with the added bonus of your own home! What you may not be so mindful of is all of the other fees mortgage providers charge you. There is obviously the interest on your loan but there are additional fees they may charge to set up your mortgage. Some of these can be added to you loan but doing this will obviously increase your monthly payments and the overall cost of your loan. The mortgage fees vary between lenders but can include:
- Valuation Fee £150-1500
- Set-up Fee £99-300
- Arrangement Fee £0-2000
Properties bought for more than £125,000 will incur a stamp duty fee paid to the exchequer on completion of the property sale by the buyer. This fee is charged on a sliding scale dependent on the property sale price. These are set by HMRC and can be viewed at http://www.hmrc.gov.uk/sdlt/intro/rates-thresholds.htm. For an average priced property in Kent (£262,028) the stamp duty fee is 3% of the purchase price and so would cost £7860.
|Up to £125,000
|Over £125,000 to £250,000
|Over £250,000 to £500,000
|Over £500,000 to £1 million
|Over £1 million to £2 million
|Over £2 million
|Over £2 million (purchased by certain persons including corporate bodies)
These are the fees incurred by the solicitor or conveyancer on your behalf for the legal work required to complete the sale. The fees vary whether you are buying or selling (clearly you are usually doing both). The charges are usually between £300-£700 for selling and £400-1000 when buying. If you are purchasing a property the solicitor will also usually instruct all the relevant searches on your behalf (such as those to check appropriate planning permission, flood risk, chancellory etc) and these will amount to approximately £200. There is also the Land Registration Fee to pay and this usually varies between £20 and £455 depending on the property price. In total the legal fees for both selling and buying a property can vary between as much as £1000 and £4500.
When choosing you solicitor, surveyor and estate agent (see below) use a reputable firm and use firms recommended by your friends and colleagues – a cheap initial price can actually turn out to be very expensive. As always, obtain several quotes before you decide and always negotiate.
Estate Agent Fees
As with the legal fees these vary from agent to agent. The fees can vary anywhere from 1% to 3% of the final sale price. Your estate agent can also usually organise an Energy Performance Certificate (EPC) for you as this is a mandatory item for sale. The EPC will cost around £100 and so for an average price property in Kent the estate agent fees and EPC combined will set you back £2720-7960. Remember both the estate agent fees and the EPC charges are only paid by the seller.
A house purchase is the most expensive outlay you are ever likely to make as such it is always advisable to get a qualified surveyor to inspect the property. A home buyers report will highlight any major defects within the property and a full structural survey gives you in-depth detail on the state of the house you are considering buying. Either report could well save you thousands of pounds and a lot of heart ache in the long run. A home report will set you back around £300 and a structural survey start in the region of £500.
Your house removal costs are completely dependent upon the amount of furniture and belongings you have to move, how far you are moving and whether you plan to do the packing yourself. Additional charges could be incurred for moving bespoke items such as pianos or fine art. Just like any other purchase do your research and use a firm recommended by your friends and colleagues. You can also use independent sites such as ReferenceLine to get a feeling for the company’s reputation.
We recommend you get three independent quotes from member of the British Association of Removers (BAR). Members of the BAR agree to abide by a strict code of practice and all members are fully insured. The BAR provide an online estimator for you to get a rough idea of how much your move may cost but always get an on-site survey before you choose your removal company. We also provide an online form to provide you with a removals estimate, see the link to the right.
Buying a house is an expensive business with lots of additional costs to move house in addition to the actual purchase price. Careful budgeting is key as is shopping around, but do use recommended companies. After spending all that money on your dream home don’t start your first night there stressed having tried to save a few pounds by using a disreputable removal company. They are, after all, moving all of your worldly belongings so it may cost you more money in the long run.
For more house moving advice check out our helpful hints page on http://www.colinbattremovals.co.uk/house-removals/helpful-hints/