Hidden costs
Whilst these costs won't affect your monthly budget once you've bought your new home, they do need building into your overall ‘moving home budget.'
stamp duty
A government tax you have to pay on the conveyance of your property if it costs more than £125,000. The amount due depends on the value of the property. Current arrangements for stamp duty are subject to government policy and may change in the future.
| Purchase price of property | Stamp Duty payable |
|---|---|
| up to £125,000 | 0% |
| £125,001 to £250,000 | 1% |
| £250,001 to £500,000 | 3% |
| £500,001 to £1 million | 4% |
| Over £1 million to £2 million | 5% |
| Over £2 million | 7% |
For properties over £2 million purchased by certain persons including corporate bodies from 21 March 2012 the stamp duty payable is 15%
You can also check to see if your new area is exempt from stamp duty, simply enter your new postcode into the Government's postcode search tool.
estate agent's costs
Few people realise that estate agent's fees are open to negotiation and can vary between as little as 1% and up to 3% of the purchase price, depending on where you live and the state of the market in your area. Find an estate agent in your area.
solicitor's costs
Expect to pay solicitors fees of around £550 for a house with a purchase price of £100,000. Don't forget that if you're also buying a house you'll need to pay your solicitor a similar amount for that too.
Search fees and land registry fees could add a further £300 to this so make sure your chosen solicitor provides you with a full, itemised costing. Most solicitors will also ask you to pay for search fees up front - so you'll need to factor this into your financial arrangements.
Again, as with estate agents, it's a good idea to get quotations from several solicitors because their costs can vary considerably.
Obtain a free no-obligation quote from Co-operative Legal Services
no sale no fee
Many solicitors or conveyancing firms operate on a no sale no fee basis which means there are no financial obligations should you decide not to proceed with your sale or should your sale fall through - it's worth checking whether your chosen solicitor works on this basis.
e-conveyancing
A good solicitor will keep you informed at all stages and it is worth checking how they intend to do this. Many firms can now conduct e-conveyancing over the Internet, removing the need to even visit their offices.
Find out more about what a solicitor will do for you and when.
removal costs
Again, shop around and get a range of quotations for your removal costs. A recent survey by propertyfinder.com found that the average cost for removals in the UK was £450, but this will vary by area and will depend upon how far you're moving and the amount of personal belongings and furniture you'll be taking with you. Visit Removalgroup for more information on removal costs.
surveyor's costs
When you've found a house you want to buy you'll need to get a survey carried out on it. Most mortgage providers will put you in touch with their preferred surveyors to arrange a basic valuation, which is a compulsory requirement for taking out the mortgage. The basic survey may throw up the need for your lender to ask you to have further subsequent surveys, such as full structural, electrical or damp proofing surveys.
Most lenders will also offer you the option to upgrade your survey to a full structural survey for an additional fee. Find out more about the different types of surveys.
The cost of your survey will depend on the value of the property. The Co-operative Bank offers a range of surveys at competitive prices:
mortgage conditions
Something else to consider are the costs involved in changing your mortgage. If you have an existing mortgage now's the time to dig out the terms and conditions. Here's what you're looking for:
- What type of deal do you have? Can you transfer it to a new home – in other words is it what mortgage providers call ‘portable'? All Co-operative Bank mortgages are portable, which means that you can take your mortgage with you if you move home at no extra cost.
- Are there exit costs involved in moving your mortgage across? Typically, lenders may charge from £0 to £295 to close an account.
- If you're taking out a new mortgage, are there any penalties for stopping your old mortgage? These are usually called ‘early redemption charges.'
- Are there any ‘arrangement fees' involved in starting your new mortgage deal? The Co-operative Bank offers a range of no fee deals for new and existing customers.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
