Moving home is stressful, as many of us are all too aware. I’ve just done it, and it was not fun. Many ignore one of the sides issues of moving however, apart from general stress. When examining the true costs of buying a property, people wildly underestimate the costs involved. So we thought it pertinent to take a look at what is involved.
Mortgage Arrangement Fees
It is very common that you need to pay your lender this fee for helping to arrange the mortgage process. The true amount varies, but £1000 is not uncommon. Another cost that no one needs. What is worse is that in some cases, the fee will not be returned by the lender should the sale fall through. So it is also a gamble.
True Costs Of Buying A Property – Valuation Fee
This is the price charged by lenders for a valuation to ensure that the property exists and provides adequate security for the loan. The cost varies depending on the lender and the purchase price, but expect to pay around £300.
True Costs Of Buying A Property – Legal Fees
Many lenders will pay for your legal bills, but you must choose an attorney who has been approved by them. Depending on the purchase price, you can expect to pay between £500 and £800 for your own conveyancing.
Stamp Duty
If you buy a home for more than £125,000, you’ll usually have to pay stamp duty (unless you’re a first-time buyer, in which case you’ll pay zero stamp duty on the first £300,000 of any home up to £500,000). However, due to temporary modifications, many people will not be required to pay it. Unfortunately Rishi Sunak has ended stamp duty holidays in 2021 that will burden people with even more costs in the future.
Surveys
A typical survey costs between £400 and £700, which adds to the cost of any acquisition. Many individuals pay for surveys on failed purchases, so plan on doing two or three.
True Costs Of Buying A Property – Removal Costs
As i essentially had no budget for my move, i tried to do everything as cheaply as possible. but moving a lot of stuff from a 2nd floor flat, meant that using friends’ cars was just enough. I had to hire some professionals too. And to just move 4 items cost me £150. So you have to sit down and calculate removal costs, because if you need someone to move everything for you, the costs will be very high.
Home Repairs
No one moves into a new home and spends nothing. I mean it is possible, but very hard to achieve. I had to buy new furniture, and lots of little items to make the place my own. And for many, the new home will not be in perfect condition. They may need to pain, repair, and renovate. All things to consider when moving.
Bills
Finally, the place you leave may still have some nasty surprises for you. When i left my last place i owed £300 on my electricity bill. Just more costs to ass to the ever-increasing total. Squaring up everything for a place you leave is not always a cheap process.
