The Average Cost Of Moving House

Everyone knows that moving home can be an expensive process. That’s why it’s important to budget for all costs. Here we breakdown the average cost of moving house. With this guide you can ensure your budget incorporates the common costs that come up.

Upfront Mortgage Costs

Estate Agent Fee

Variable but can be up to 3.5% of sale price

This is a cost you pay to your estate agent for selling your current home. It varies between estate agents, so you may want to check what the fee is before deciding on which one you will use to sell your home.

 

Stamp Duty

Set % of cost of house

Stamp duty is the tax you pay on the land you’re purchasing. So, rather than being a set price, stamp duty is calculated based on the cost of the house and only applies to homes above a certain value.

From April 2021, stamp duty will be as shown in the table below. There is currently a temporary reduction in stamp duty meaning you only start to pay stamp duty on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.  

 

House value

Stamp Duty

Up to £125,000

0%

£125,001 - £250,000

2%

£250,001 - £925,00

5%

£925,001 - £1,500,000

10%

£1,500,001+

12%

 

Your solicitor or conveyancer will often submit your SLDT (Stamp Duty Land Tax) return to HMRC for you. They will then add the cost to their overall bill. You can speak to your solicitor or conveyancer to check if they will be covering stamp duty. However, if you’re setting up stamp duty yourself, you need to send your SLDT yourself within 14 days of the house sale completion.

 

Valuation Fee

Usually £250+ – dependent upon the cost of your home

Before buying your new home, you’ll need to have it valued. This proves to the lender that the property is worth the amount they are going to lend you. The valuation fee you pay will be to cover this cost however, on some mortgage products you may find that the cost of this valuation is included.

 

Surveyors Fee

Usually £250+ - dependent upon the cost of your home

Request a homebuyer or structural survey if you want to learn more about the property you’re buying. Where a property valuation tells you property’s worth, a homebuyer or structural survey will provide detail on the condition of the house, such as if the roof requires repairs. If any large issues arise out of the survey, it will give you leverage to negotiate your offer price. You can get varying levels of surveys at different prices and they aren’t compulsory to the house buying process. If you want to find out more about your options, read our guide on the different types of homebuyer surveys.

 

Completion/Arrangement Fee

Anywhere from £0-£2,500 (but dependant on application type)

Your completion fee, sometimes referred to as an arrangement fee, is paid upon completion of your mortgage and is the fee to acquire the mortgage product you have selected. Not all mortgages have a completion fee, while others include the fee as part of the mortgage. We recommend speaking to a mortgage advisor to get a clear understanding of your full mortgage cost.


Reservation/Booking Fee

Usually £100-£200

Much like booking fees encountered elsewhere, a Reservation fee (or Booking fee) is a cost paid upfront with your application to secure your mortgage product while your application is processed.


Legal Fees

Usually £800-£1,500

These are the costs covered for using a conveyancer. You will need a conveyancer to manage all the legalities of moving home.

 

On-The-Day Costs

Organised House Removal Service

Using an official removal service can be very handy. It means you don’t have to worry about getting everything loaded up and moved, especially if you have heavy items to transit.

Make sure that the removal service you use is legitimate and comes with insurance - otherwise you may not be covered if something gets broken!


DIY? Get House Removal Insurance

If you decide to hire a van and move your own furniture and possessions, make sure you get house removal insurance to cover yourself in case of any issues. It’s also a good idea to check your house insurance policy and see if removal insurance is covered, as it is included in some policies.

 

Storage Units

If there’s an interim between selling your old home and moving into your new home, you might want to consider renting out a storage unit. This allows you to keep all of your possessions in a safe place until you move into your new home.

 

Deep Clean Of The Old House

You can probably do this yourself, but for a deep clean you might want to consider, hiring a professional. This leaves the home in a clean and tidy condition for the people moving into your old property, and if you’re currently renting it prevents your landlord from charging you for any marks or dirtiness.

 

New Home Costs

Land Registry fee

£40-£910 – dependent upon the cost of your home

This is the cost of registering your name to the land you have just purchased, and this is paid to the Land Registry.

 

Home Insurance

Lenders will require you to have arranged your home insurance and have this in place in time for contracts to be exchanged.

 

Repairs

Homeowners may end up footing the bill for repairs on their new house which can add up to thousands of pounds. You might find it useful to keep some money aside for any big issues. If you choose to get a homebuyer survey before you buy the house, this may mitigate some of those repair costs.

 

Mail Redirection

From £33.99

Royal Mail will handle your mail redirection from your old home to your new home for a fee. This fee goes up depending on how long you want the redirection for, whether you want it redirecting to an overseas address and whether you want to add an extra person to the redirection.

 

Changing Locks

You don’t have to do this, but if you want complete security you may want to change the locks to ensure no one has a key that you don’t know of.

 

We hope you found this useful. To get an understanding of costs after you move, you can find out what your mortgage repayment costs will be with our simple repayment calculator. If you want to speak to a member of our team, don’t hesitate to book an appointment with a mortgage advisor.

 

Your mortgage will be secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Apply for a mortgage today

Talk to our mortgage advisers

03456064488

Calls to 0345 numbers, cost the same as a call to a standard ‘01’ or ‘02’ landline number, even when calling from a mobile. Contact your provider for more information.