When buying a home for the first time, it’s easy to simply focus on the main costs associated with doing so.
So, that would be your deposit and your mortgage.
Many buyers make the mistake of failing to factor in other costs when saving for a deposit, only discovering the issue when their deposit fails to go as far as they’d hoped.
Here are the five other major costs of moving that you need to consider…
1. Stamp Duty
One of the biggest costs to eat into your deposit.
If the home you’re buying costs more than £125,000, you’ll have to pay some Stamp Duty, which is a government tax on home buyers.
However, if you’re a first-time buyer, you’ll pay no tax on the first £300,000 of your property’s value.
The best place to start when thinking about Stamp Duty is an online calculator, which will tell you exactly how much you’ll owe depending on your property’s purchase price.
2. Valuation fee
When you purchase a property, your mortgage lender will want to know that it’s worth the amount you’re borrowing from them to buy it.
Lenders need reassurance that, should you get into financial difficulty, they’ll be able to get their money back.
To assess this, your lender will undertake a valuation report on the property you’re buying and this means a fee.
Depending on your property’s value and the type of valuation required, this fee can cost between £100 and £2,000, so definitely one to factor in to your budget.
3. Survey fee
As well as your lender needing reassurance, you’ll need it, too.
And that means having a survey done on the property you’re buying.
Not only with this reveal any potential issues with the property that could hit you hard in the pocket, it will also confirm the property’s value.
Different surveys are available and these range in cost from around £200 to more than £700.
4. Conveyancing fees
Another hefty expense when moving is legal work.
In order for you to legally own the home you’re buying, a certain amount of legal work needs to be done and for that you’ll need a solicitor or property conveyancer.
Of course, that doesn’t always come cheap.
Solicitors can cost anywhere from £800 to £2,000, plus VAT, so legal costs are another major expense you’ll need to factor into your move.
Unless you’re feeling fit as a fiddle and fancy completing your move yourself, you’ll need a removals company to do this for you.
Removals costs vary depending on how many belongings you have, access to your property and how far you’re moving.
General costs average out around £500 for removals.
But remember, you can always haggle as long as you’ve done your research and shopped around for a good deal.
Other potential moving costs
Other costs associated with your move could include:
- Mortgage fees – booking fee, arrangement fee
- Electronic transfer fee – for moving your purchase funds
- Storage costs – for storing your things prior to a move
- Mail redirection costs – so your post doesn’t end up at your old home
If you are looking for your next new home, take a look at our latest properties for sale.