| Moving house isn't a cheap exercise, so before you put your house on the market, it's important to do your homework and work out exactly how much it's going to cost to sell.
Use this table (below) to give you an approximate idea of the costs of buying and moving home. Select the relevant figures for legal, mortgage and removals costs and then add together for the total cost. If you are using an estate agent to sell your property, take the value of your property and multiply it by 1.8 per cent to gain an idea of the fee you are likely to have to pay to an estate agent.
The cost of moving home at a glance
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Legal Costs
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- * Only add this figure if you are buying a flat.
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Value of property
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Up to £99k
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£100k - £249k
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£250k - £400k
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£401k - £500k
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£500k +
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Fees
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465
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560
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590
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650
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700
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Searches
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175
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200
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225
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250
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250
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Stamp Duty
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0
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see ready reckoner
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see ready reckoner
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Money transfer
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35
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35
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35
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35
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35
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Land Registry fee
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200
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200
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250
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250
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420
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Leasehold*
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115
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115
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115
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115
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115
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Mortgage fees
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- * If you are obtaining a mortgage, check whether you need to pay an arrangement and/or booking fee.
- ** A higher lending charge is only appropriate in certain cases.
- *** The choice of survey is yours to make.
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Value of property
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Up to £99k
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£100k - £249k
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£250k - £400k
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£401k - £500k
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£500k +
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Valuation
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175
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265
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420
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420
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420
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Arrangement fee*
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300
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300
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300
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300
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300
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And/or booking fee
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250
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250
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250
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250
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250
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Higher lending charge**
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Survey fee***
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- Either homebuyer
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300
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300
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550
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650
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800
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- or building
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500
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500
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700
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800
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1200
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Removals
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- Courtesy of Which? essential guides ''Buy sell and Move House' p.30/31.
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Value of property
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Up to £99k
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£100k - £249k
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£250k - £400k
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£401k - £500k
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£500k +
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Hire a van
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125
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125
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Not recommended
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Not recommended
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Not recommended
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Removal company
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450
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600
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800
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1000
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1500
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Add packing by removal company
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100
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150
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200
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250
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300
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As of spring 2006 the current stamp duty rates are:
Stamp Duty rates
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Stamp duty land tax ready reckoner
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- Courtesy of Which? essential guides 'Buy sell and Move House' p.31.
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Property value
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Stamp duty
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Up to £125,000
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Nil
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£125,001 - £250,000
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1%
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£250,001 - £500,000
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3%
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More than £500,000
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4%
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Estate agent fee
If you are using an estate agent to sell your home, you will be charged a fee for their services. This will usually vary between 1.5 and 3% of your property's sale price plus VAT and will be at the upper end if you sign up to a multi-agent contract. So if your house sells for say £250,000, you will pay them anything from £3,750-7,500 in commission plus VAT. Fees can be negotiated up front, and even reduced after a period of time if your agent is slow to sell your property.
Mortgage penalties
Check your mortgage's small print to find out what charges might be applicable if you are settling your loan early.
Redemption penalty
When moving house, you will be paying off your existing mortgage and taking out a new one. Repaying some or all of your existing mortgage may incur early repayment charges (also known as redemption penalties) so check your mortgage small print. This can be as much as several months' worth of mortgage payments as a penalty for redeeming earlier than your mortgage agreement. However, if your mortgage is what's called 'portable', you can transfer this loan to the new property.
Mortgage Exit Administration Fee
Pay off a mortgage and you'll be charged a mortgage exit administration fee (MEAF) that covers the admin costs associated with releasing a mortgage once the capital's been paid. This is either applied when you pay off your mortgage early or at the end of the original mortgage term.
Removals
Think about the cost of removals. Hiring a van is a cheaper option if you're only moving a short distance from a flat or small house. However for anything larger or for long distance moves, it makes practical sense in terms of time and labour to hire a professional removals firm. This can cost anything up to £1,500 plus additional packing costs.
Guide to removal costs
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Removals
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Value of property
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- Courtesy of Which? essential guides 'Buy, Sell and Move House' p.31.
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Up to £99k
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£100-£249k
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£250-£400k
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£401-£500k
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£501+
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Hire a van
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£125
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£125
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Not recommended
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Not recommended
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Not recommended
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Removal company
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£450
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£600
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£800
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£1000
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£1500
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Add packing by removal company
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£100
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£150
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£200
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£250
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£300
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- Privately
- Lawpack - www.lawpack.co.uk
The UK's self-help legal publisher that has tips on selling property privately.
- Which - www.which.co.uk/books
Independent advice on buying, selling and moving house.
- With an agent
Although there is currently minimal formal regulation of estate agents, there are trade associations that enforce strict codes of practice. Check to see if an agent is a member. These trade bodies offer a good way of appealing should something go wrong and their aim is to ensure members provide the highest level of service to UK buyers and sellers.
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