How can you budget for the full cost of moving home?
According to the latest research two thirds of homebuyers underestimate the cost of buying a home.
Over the past decade, the additional costs of moving home have increase by 25% and many people’s budgets have fallen short by almost £2,000.
So why are so many people underestimating the cost of moving home? And how can you budget for the full cost of your move?
Taking all the costs of moving home into account
There are a number of costs involved in moving home that many people do fail to take into account. From mortgage fees to legal costs and surveys, it is important that you are aware of the costs of moving home when planning your budget.
Planning your deposit amount
The most obvious (and often the largest) cost of moving home will be the deposit you will put down on a home.
In most cases, you will have a figure in mind for how much money you would like to raise for a deposit. However, it is important that you take other upfront costs into account when deciding how much you can spend on your deposit.
Other costs linked to your mortgage
In some cases, a mortgage lender will request an upfront cost called an arrangement fee. These can vary in cost but will normally be around £1,000.
Usually, you will have the option of adding this to the cost of your mortgage; however it should be noted that you will end up paying more in the long run.
Some lenders also charge a booking fee which ranges between £99 and £250 although this is now less common.
Preparing for legal costs
When buying or selling a home you will need to instruct a conveyancer to carry out the legal work for your move.
Your solicitor will arrange any necessary searches, communicate with other side’s solicitors and arrange for contracts to be signed.
Here at Residential Matters, you can receive an upfront, fixed fee quote allowing you to budget for your move. You can even get your conveyancing quote online.
Check the costs of surveys
Carrying out a survey on a home you are planning to purchase is vital to ensure there are no structural defects with the property.
The cost of survey will vary depending on the age and condition of the property you are buying. Although paying for a survey may seem like an unwanted upfront cost, identifying potential problems could save your thousands of pounds in the long run.
Do you need to pay stamp duty costs?
Any home that is worth more than £125,000 will incur stamp duty land tax charges.
Stamp duty is charged as a percentage of your house price. For instance, if you are buying a home for £200,000, your stamp duty costs will be £1,500 (you pay nothing on the first £125,000 and 2% on the next £75,000). If you’d like more information, you can find the full costs of stamp duty here.
Talk to the dedicated conveyancers at Residential Matters
If you’re looking to move home, the dedicated solicitors at Residential Matters can provide the advice you need on many of the costs of moving home.
Our specialist conveyancers are on hand to ensure that your move runs smoothly and you have all the information you need on the process of moving home.
You can talk to our legal experts today by calling 01282 695 400.
Or, if you can’t talk to us right now, you can contact our expert conveyancers online.