Moving House Tips for homeowners
If you're moving home, there’s a lot to think about, which is why we've put together some handy tips of things to do and think about before you buy or move.
Are you a first time buyer buying your new home? Perhaps you're already a home owner and moving to a new place?
How can I budget for moving home?
It's important to budget for moving house because there's a number of costs involved, but if you plan ahead you’ll be better prepared.
You'll normally need to have saved up a deposit which will be a percentage of the purchase price of the property, some mortgage providers may require a minimum 5% down payment, but this can vary.
When moving house you'll also need to budget for:
- Stamp duty – known as Stamp Duty Land Tax or SDLT. The current SDLT threshold is £125,000 for residential properties and £150,000* for non-residential land and properties. So you’ll need to pay this if you buy a property worth £125,001 or more
- Property valuation report - the cost of having your proposed new property valued by the mortgage company. This is for the lender to be satisfied that the property you're buying is worth the price you're paying, so that they can offer you a mortgage. It's based on the value of the house. The cost of the report can differ with each lender, so make sure you find out how much yours will charge.
However, it won’t uncover repairs or structural issues – you could arrange this survey yourself or some lenders will do it for you, for an additional fee.
- A homebuyer’s report or building survey – is a more thorough investigation of the structural soundness of the home you're buying. It’s particularly important to have a proper survey if you're buying an older property.
- Conveyancing fees - these cover the transfer of the legal title of the property from one party to another, including legal costs.
Usually a solicitor or licensed conveyancer does this work for you. Your solicitor will also charge you a fee if they are drawing up contracts to sell your house.
- Search fee - these involve your solicitor finding out about any planned developments, disputes or legal issues that may affect the property.
- Mortgage lender fee – your bank or building society may charge you a fee for setting up the mortgage and if you've arranged your loan through a broker or an adviser they may charge you an additional fee. However, sometimes lenders offer deals where they waive the arrangement fee.
- Estate agency fee – if you're selling your home then expect to pay a fee to an estate agent for marketing your home. This is usually a percentage fee of the agreed selling price, the actual fee will vary between agents.
- Land Registry fee - The Land Registry charges for registering a purchase or mortgage
In addition to the paperwork involved in buying a house, you may also want to think about extra costs such as:
- Removal fees
- Bank charges for transferring money – for example the deposit or mortgage money
- Life insurance – you may need this when arranging a mortgage
- Buildings and Contents Insurance – you need to sort this out in advance
- Making a will