When calculating the finances of buying a new home, it is easy to forget how many cost factors, including charges by residential conveyancing solicitors and other property professionals, will add to the moving bill.
If you are a first-time buyer or have not moved home for a number of years, you may be surprised how much money will be needed. So, before seriously starting house-hunting, it is wise to factor in these costs, which can amount to £10,000 for an average property.
Stamp duty is a government-imposed tax on almost all home sales and is subject to change. After the Budget of March 2010, first-time buyers were given exemption from the tax on properties costing up to £250,000.
Previously, only properties sold below £120,000 were free of this tax. Transactions valued between £125,001 and £250,000 by buyers other than first-timers are charged at 1% and there is a sliding scale of 3% for £250,001 and £500,000, 4% for £500,000 and 5% for homes costing more than £1m.
Full information on these fees is available from HM Customs and Revenue or from your residential conveyancing lawyer, who is responsible for passing on the tax to the authorities.
Although a Home Improvement Pack (HIP) is no longer required, anyone selling their home and who does not have an Energy Performance Certificate (EPC) compiled within the previous ten years will need to obtain one to give to potential buyers. The report will cost less than £100 and, as this is a competitive field, it should be possible to shop around for the cheapest inspector.
Using a professional estate agent can reduce problems
Most homes in the UK are bought and sold through estate agents, although in cities such as London and Brighton there are alternatives, including specialist listing newspapers and websites, but sellers who pay for the services of a professional agent can expect the fewest problems and, often, the best price for their home.
Estate agents charge percentage fees to the seller, dependent on the final sale price of the residential property and this can be negotiated before a contract is signed but are usually between 1% and 3%.
Other property professionals, such as surveyors and planners, will also need commissioning and paying if inspections and reports are needed for potential building work or improvements.
A buyer's report is likely to cost about £300, while a full structural survey will be anything from £500 upwards, depending on the size and condition of the property.
The mortgage lender's charges will be added to the total cost of the borrowing and divided up as part of the monthly repayments but the valuation fee, of between £250 and £500, will have to be paid upfront by the buyer and is not usually refunded if the sale falls through.
Other expenses of moving house
Using a commercial removal firm to transfer your furniture and possessions can be quite costly, depending on a range of factors. Prices can be anything from about £500 for a one-bedroom flat move to more than £2,000 for the contents of a five-bedroom family house.
It is also advisable to gather a number of quotes from companies and, if possible, be flexible about the day of moving. Make sure possessions are insured for the move and reduce items to the minimum to keep costs down.
Although hiring a van and moving yourself will be much cheaper, especially if there is only a short distance between the old and new homes, hire charges and fuel for the van must be paid.
Additional expenses around the time of buying and selling a home are likely to include the cost of re-directing mail, changing the telephone line and possible increases in council tax and insurance. Ensuring all official bodies, finance companies and voluntary membership organisations have been given changed details of address could well save extra cost and problems after the move.
Residential conveyancing solicitors' fees will vary, depending on the amount of work needed to ensure the purchase contracts are properly completed and all finances dealt with correctly.
Search fees and land registration fees will be separate to the charges for the law firm's own work. If one solicitor is dealing with both a sale on one property and immediate purchase of another, there is likely to be a discounted price for the two transactions.
Value for money conveyancing from Healys solicitors of London and Brighton
To help budgeting before committing to a home purchase, buyers and sellers can obtain a personal free estimate of costs from Healys. With the experience and skill of the specialist residential conveyancing legal teams in London and Brighton, clients can be assured they will not only be receiving value for money but their interests will be protected at all times.
All Healys staff has a helpful attitude towards achieving the best result for their clients, before, during and after the finalising of a home purchase. Someone is always available to explain procedures and ensure transactions are completed quickly and efficiently.
For more information and advice on costs of Healys' conveyancing services, you can request a call-back via the website, email partner Kiri Kkoshi, telephone 020 7822 4148 or associate solicitor Darina Gowen telephone 01273 669 115.
