There are a number of costs that you need to take into account when moving house which we have outlined below. You can also download dot's handy cost of moving sheet to work out the total cost of your move. Another important issue to bear in mind is the ongoing affordability of your proposed mortgage - use our monthly budget planner to work out where you stand. Clicking these links will open a PDF file - if you do not have Adobe PDF Reader, please click here to download it.
Arrangement fee
A fee charged by some lenders to cover the cost of setting up a mortgage.
Lenders valuation
All lenders will carry out a basic valuation of a property to check that it is worth the price being paid for it. The valuation is commissioned by the lender but paid for by the borrower. The cost depends on the lender and the value of the property – some lenders waive the fee entirely.
Survey
In addition, you can also commission your own survey to find out about the condition of the property you are buying and uncover any hidden issues. There are two main survey products available, The RICS Homebuyers Report which costs between £250 - £500 (+VAT) and The Building Survey (formally known as the Structural Survey) which costs up to £1,000 (+VAT).
Legal fees
A solicitor needs to be appointed to deal with the legal aspects of purchasing a property. It is advisable to get quotes from at least two solicitors before deciding which one to instruct.
Stamp duty
This is a government tax based on the property's purchase price and is calculated as follows:
| Up to £125K | Nil |
| £125-£250K | 1% |
| £250-500K | 3% |
| Over £500K | 4% |
Land registry fee
This verifies legal ownership of the property and registers the owner at that address. The Land Registry fee varies depending on the value of the property:
| Up to £125K | £200 |
| £200-£500K | £300 |
| £500K-£1m | £500 |
| £1m+ | £800 |
Local authority searches
Your legal adviser will carry out a local authority search to discover if there are any plans for future developments that could affect the value and purchase of your chosen property. Allow at least £60 for these searches.
Other searches
These include index map, commons, the coal authority, land charge, company searches and bank transfer fees. Allow about £70.
Estate agent’s fee & HIP
If you’re selling a property as well as buying one, the estate agent’s fee needs to be taken into account. Usually it is charged as a percentage of the property price – budget for up to 3 per cent (plus VAT).
In the summer of 2007, the Government introduced “Home Information Packs.” These are a pack of information about a property which is produced, and paid for by the seller. The cost of these varies and some estate agents are even providing them free of charge.
Removal fees
Try and get quotes from at least three different removal firms as prices can vary greatly. Remember to have some cash with you on moving day to tip the crew.
Higher Lending Fee
This is a fee charged by some lenders where your loan amount is more than 75% of the price of the property. Your dot advisor will be able to tell you which products will incur this fee.
Mortgage redemption fee
If you are changing an existing mortgage as part of the move, you need to check with your lender whether an early redemption or exit fee will be payable
Contingency / Miscellaneous costs
It is important to allocate a reasonable-sized contingency fund for emergencies. You do not want to be left stony-broke if you have any unexpected costs.
Other costs to bear in mind
- Childcare / kennel / cattery costs
- Buildings insurance
- Home contents insurance
