Guide to the cost of moving house

In order to access the best deals, there are often mortgage fees when buying a house. Every lender has different criteria, but when you take out a mortgage you will either pay a product fee upfront, or higher interest rates over the long-term. Some buyers like to pay a mortgage broker to find the right deal, but alternatively, you can select a product directly through lenders like YBS.

Here are some approximate fees and charges when you take out a YBS mortgage.

Further fees are payable depending on the nature of your transaction; for example, you’ll pay a Property Assessment Fee of £85 if the valuation is carried out without an internal inspection. You’ll also pay a small charge if you request duplicate documentation.

Legal fees are one of the main costs of moving home. And while legally you’re not obliged to hire a solicitor or conveyancer, the DIY approach isn’t recommended. Buying a property involves a number of legal processes – from Local Authority searches to fraud checks – and you’ll want to ensure that your new home is lawfully yours. Ultimately, your solicitor or conveyancer will oversee the bank transfer with YBS or the relevant lender, so this is one moving cost that’s definitely worth it!

What are the typical legal fees when buying a house? It depends on the value of the property, how complicated the purchase is, and the payment structure of the firm undertaking the legal work. But for most properties, you can reasonably expect to pay £780-plus in legal costs.^[5]

A property survey is a visual inspection and report that highlights any defects with a home that you and your lender should know about before agreeing to the purchase. Unless you want to take a huge risk, surveys are one of the unavoidable costs of moving house.

Here are the typical costs of a property survey depending on which option you choose:

Costs referenced from www.which.co.uk ^[6]

While you might be tempted to save money by skipping the survey, this could be a false economy if you end up with a big repair bill further down the line. A property sale isn’t legally binding until the moment you exchange contracts, so even a ‘bad survey’ can potentially save you thousands if you decide to withdraw your offer, or revise your bid based on any increase in estimated repair costs.

Estate agents are ultimately paid by the seller, so this well-known moving cost only comes into play if you’re selling a property and moving on. Some estate agents charge upfront fees, but traditionally, you’ll pay a percentage of the final sale price. The amount you pay depends on how many estate agents you use.

Estate agents costs referenced from The Advisory^[4]

You may get cheaper fees if you use an online estate agent, but you won’t necessarily get the same dedicated support when it comes to things like arranging viewings, writing the property listing and negotiating with the buyer.

One potential cost of moving house is Stamp Duty – officially the Stamp Duty Land Tax. The amount of Stamp Duty you pay depends on the purchase price and your status as a buyer. Find out how much you might pay using our Stamp Duty Calculator

Stamp duty holiday: on July 2020 the government introduced a stamp duty holiday to help boost the property market which suspends stamp duty being paid on the first £500,000 of all property sales in England and Northern Ireland. The current stamp duty holiday extends to 30 June 2021.

From 1 July 2021 until 30 September 2021 there will be a further extension with no stamp duty charged on the first £250,000 of all property sales in in England or Northern Ireland (there are separate property taxes in Scotland and Wales).

For the latest rates and exemptions, visit the UK government website.

The cliché is that moving house is one of the most stressful life events, but using a removal company can save you valuable time and energy. You can expect to pay a few hundred pounds, but the actual removal costs will depend on the size of the property you’re moving into. Many firms offer a packing service for an extra fee, which means you can enter your new home with all your possessions safely stored in the right rooms.

If you’re not moving straight away you could consider a storage service; the quote you receive will depend on how many containers you require and the length of time you need to store your possessions.

Removals costs referenced from www.anyvan.com ^[5]

Protecting yourself with home insurance can feel like just another cost of moving house but it’s a no-brainer. Buildings insurance will give you financial cover if the structure of your property is affected by events like storms and floods, while contents insurance provides coverage for your possessions if they are damaged or stolen. The website Unbiased.co.uk suggests that the cost for home and contents insurance would be in the region of £146 to £152^[7] for a year, though the actual amount can be affected by many factors. Of course, no one wants to fork out on extra fees when buying a house, but if you don’t have the right coverage in place you could face an expensive headache in the long-run.