Cost of Moving Home

3rd March 2021

Moving home can be a daunting process. Aside from the cost of the property, there are other costs you will need to factor in when you are budgeting to move home, from mortgage costs and legal fees through to stamp duty and more. 

Whether you are searching for a new property or preparing to move into a new home for the first time, we will be able to assist you, and we have created a helpful guide outlining everything that you need to know about the cost of purchasing your new home. 

What’s the cost of moving home?

Stamp duty

Currently in England and Northern Ireland, you must pay Stamp Duty Land Tax (SDLT) if you buy a property or land that is over a certain price. For example, the current SDLT threshold for residential properties is £500,000 and the threshold for non-residential land and properties is £150,000.*

However, if you are a First Time Buyer, you will not need to pay any SDLT on purchasing a property under the value of £300,000.*

You will also pay the tax when you:

  • Buy a freehold property
  • Buy a property through a shared ownership scheme
  • Buy a new or existing leasehold

How much you pay will depend on whether it is land or property you are purchasing. To gain an idea of how much you will pay, you can use the HM Revenue and Customs’ Stamp Duty Land Tax calculator. 

*please note that this is subject to Government change.

Valuation fees

All mortgage lenders will assess the value of the property you are looking to purchasing in order to establish how much they are prepared to lend you. As a general rule of thumb, you should expect to pay anything from £150-£1,500, depending on the value of your property and the type of valuation that you choose to have conducted on the property.

If a structural survey is required then you will need to pay separately to have this done alongside the lender’s valuation, the lender will always need to do their own valuation even if you have your own carried out.

Some lenders will offer a free standard valuation on selected mortgage products but this is something you would have to discuss when sourcing the best lender and products available.

Legal fees

When purchasing any property, you must also take into account any legal fees such as your solicitor costs or licensed conveyor who will be responsible for completing all legal work involved in buying and selling your home. Prices range from £850-£1,500 and it is always worthwhile comparing solicitor quotes before committing to a vendor. You will also have to factor in costs for local searches which are between £250-£300 but most solicitors will include this within their total costs, so always check the quotes when you receive them.

Estate agent’s fee

Your estate agent will also expect to be paid a fee for the services they provide. This is usually 1% to 3% of the sale price plus 20% VAT.

Mortgage costs

This is important, as it is vital that you do not commit to a property that you cannot afford. With this in mind, you should use a Mortgage Affordability calculator to see how much you can afford to borrow and if it is sustainable. We can also provide you with an Agreement in Principle with a lender that will suit your needs and circumstances to ensure that you know what you are able to borrow. 

Maintenance and repairs

Finally, you should always factor in costs to repair your property if there are any problems. With the average repair bill for new homeowners being around £5,500, this should always be factored into your overall costs. There are lots of other moving home tips that can be really helpful with the entire process, so make sure that you do plenty of reading around before jumping in headfirst. You can find more information on our specialist moving home pages; alternatively, contact us today by ringing 03454 500200 to find out more or email hello@chartersfinancialservices.co.uk

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We used this service to get our most recent mortgage. I cannot fault our Adviser or the team there. If we needed to speak to them they were always available. Explained things in simple terms and made us feel comfortable when talking about finances and also mortgage protection too. Thank you. We will use you again!

Glenda R

April 2020

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