The Cost of Moving Homes – From Mortgage to Conveyancing

Are you thinking about moving homes? If you are, you should remember that it’s crucial you consider how much it roughly costs and what you should allocate your budget for.

This comprehensive guide will uncover and take you through the things you need to know about moving home expenses.

When budgeting, it’s important that you have an allocation for extra costs on top of the price of the property itself.

When budgeting, it’s important that you have an allocation for extra costs on top of the price of the property itself.

Moving Homes as a Buyer

Here’s an estimate of how much you may need to set aside for extra costs when buying a house – including but not limited to mortgage, surveys, and conveyancing fees.

Mortgage Costs

When taking out a mortgage, you’ll realise that they come with charges for setting it up, including arrangement fees. However, if you shop around, you may be able to strike good deals without these fees. The only catch is that they may be offering quite a higher interest rate on the loan.

If you haven’t got enough money to pay mortgage fees upfront, you may also arrange for it to me added to the loan – interest also added on top of it.

As soon as you have agreed on an offer with the seller, the mortgage lender will need to carry out a valuation to determine that the property’s value is at par with how much you intend to pay for it. They’ll generally arrange this one for you, but you’ll have to cover the cost – ranging from £200 to £600.

When it comes to lending charges, it is worth noting that if you’re putting down 25% or below for deposit, you may find yourself charged a higher amount.

Check the table below to have an idea how much you may have to pay based on how much the property is being sold to you.

Mortgage Estimated Costs

Surveys

Whilst you’ve already had the valuation covered, it is still best that you get your own survey of the property done – especially if you’re buying a previously owned home. This is to check if there are any problems with its condition.

Home Buyer’s Reports – This covers the general condition of the property which could cost you from £350 to £1,000.

Structural Surveys – This is a more in-depth inspection of the property – generally checking out everything about how the house was built and what needs repair and maintenance. The price of a structural survey varies between £500 and £1,300.

Have a look at the table below for the estimated survey costs you may need to prepare a budget for.

Survey Estimated Costs

Conveyancing Fees

As soon as you’ve got your mortgage application and property survey in place, and you have made a solid agreement with the seller, yo’ll have to instruct a conveyancing solicitor to carry out the legal tasks of transferring the property ownership to your name.

Note that conveyancers at present would generally charge a fixed amount for their services – on top of the costs they will cover for you whilst the transaction is in progress.

Depending on how complex your transaction is, you’re looking at basic fees ranging from £400 and £850.

In terms of registering the property in your name at the Land Registry, you can expect the costs from £90 to £140, depending on how much the property was sold for.

Money transfers between mortgage lenders, conveyancing solicitors, you and the seller, and for searches also come with a price.

More so, if you’re buying a leasehold property, you’ll have to prepare for extra costs as they involve a couple more of other people to deal with. This costs about £140 on the average.

Have a look at this table for your reference on conveyancing costs.

Conveyancing Estimated Costs

However, if you’d like a more comprehensive reference to how much you may need to prepare for to get conveyancing done, feel free to request for a quote by clicking the image below.

Stamp Duty Land Tax

Of course, buying a property does not stop at completing the conveyancing process.

When you think everything is settled, remind yourself to pay your dues at Her Majesty’s Revenue and Customs office. The amount of Stamp Duty Land Tax you’re about to pay will depend on the price range of the property.

Note that this is generally your obligation and may not be covered by your conveyancing solicitor as part of the disbursements.

Here’s a graphic guide of the Stamp Duty rates to help you.

Stamp Duty Rates