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Beware of Unexpected Moving House Costs

Moving to a new home can be as stressful as it is exciting. Organising packing, booking removals and working through your change of address list is fairly time consuming. Finding new schools and/or new jobs can also be a challenge. The last thing you need is surprise extra costs when buying a house.

Because it’s not something that we do every day, many of us don’t realise all of the costs to consider when buying a house. These can include stamp duty, legal fees, mortgage arrangements fees and land registry fees, not forgetting that if you’re selling your existing home, you’ll also have to factor in estate agent’s fees.

There are plenty of moving house fees and hidden costs when buying a house – we’re here to help make sure you have them all factored into your budget to prevent any nasty shocks.

Additional costs when buying a house

Stamp Duty – if you pay over a certain amount for property or land in England and Northern Ireland, you must pay Stamp Duty Land Tax (SDLT) at a percentage rate depending on the value of the transaction. The equivalent in Scotland is Land and Buildings Transaction Tax (LBTT), while in Wales, you must pay Land Transaction Tax (LLT).

Buildings insurance – this is often a pre-requisite of getting a mortgage and is also a good idea if you’re paying cash for your property as it covers the cost of rebuilding/fixing any damage to the structure. If you’re a tenant, your landlord will usually have buildings insurance covered, leaving you to deal with the building contents insurance. If the provider hasn’t been specified by the leaseholder, you should shop around for your buildings insurance to get the best quote and coverage.

Land Registry fees - when you buy a property from someone else, the Land Registry charges a fee to change the details to your name on their register. The amount of Land Registry fees you pay depends on the value of the property.

Estate agent’s fees – if you sell your property through a third party, you’ll probably be liable for estate agent’s fees – between 1% and 3.5% of the selling price (according to Which?). You’ll have to pay a fee to all estate agents that you engage, not just the one who sells your house, but you’ll usually have nothing to pay to the estate agent who sells you your new home.

Mortgage arrangement feethis is payable to the bank, building society or other lender for setting up your mortgage, and is charged at either a set fee or percentage of your mortgage value. Mortgage arrangement fees can be added to your mortgage total.

Legal fees – these will be due at different points along the buying process to pay for for various searches and admin costs. These can be anywhere between £500 to £1,500 (including VAT) with the exact cost depending on the value of your property as well as any unforeseen problems along the way. Legal fees for buying or selling a property cannot be added to your mortgage.

Electronic transfer fees – when buying a house, you need to move money quickly from your lender to your solicitor. Electronic payments are easiest and CHAPS – Clearing House Automated Payment System – is the fastest of these, allowing large amounts of money to be transferred in a matter of hours. At £25 to £50, electronic transfer fees are relatively small but should be factored into your budget nonetheless.

VAT – don’t forget that most of these costs of moving house will incur VAT. Often this is added onto the quote but may be tagged on later so just check with all of your providers so you can budget for the full cost.

phs Teacrate can also help with the extra costs when buying a house by providing all the packaging and boxes or crates that you need to keep your possessions safe when in transit – because broken belongings are probably the most unwanted hidden costs when buying a house.

Contact phs Teacrate today to get your packing boxes and accessories ticked off your moving list.

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