Moving home is no small task and the one thing you don’t want is hidden costs you didn’t budget for!
When you decide you want to move house you need to market your property. Yes, you can do this privately but it can become costly and the best way to reduce this cost is to find yourself an estate agent. The biggest benefit to an estate agent is that they have a huge database of potential buyers and they do all the marketing, viewings and buyer interaction on your behalf as it can become incredibly time-consuming.
Most estate agents offer FREE valuations so you can have multiple estate agents pitch their service to you and discuss pricing before you make any decisions.
Having a removal company pack up all your belongings and move them to your new home is incredibly helpful. You may feel like this is something you can do yourself but, when it comes to navigating small hallways with big sofas.. leave it to the experts!
When we use the word ‘insurance’ we are mainly referring to ‘home buyers insurance’. Homebuyers Insurance is incredibly helpful in assisting with unforeseen upfront costs. There are a huge amount of issues that could make themselves known during the purchase process and knowing you have the cash to cover them will help you sleep better at night. The repercussion of not having this can impact you dearly so it’s an additional cost well worth considering.
Conveyancing is the process in which a property is transferred from one owner to another. This process is usually carried out by either a solicitor or a licensed conveyancer and protects you from any legal complications you may be exposed to during your purchase. Your solicitor or licensed conveyancer also ensure that there are no issues surrounding the building you wish to purchase or with local planning and border permissions. There are over 5,000 firms across the country that offer this service and all range in price and experience. Online comparison websites such as www.exchangetrain.co.uk are a fantastic way to find the right solicitor at the best price!
If you have decided to purchase your property through a mortgage, it is wise to get this arranged before you place any offers on properties. There are many different factors that contribute to the amount a bank or lender is willing to offer you and in order to know your limitations, it’s worth getting this sorted at the start of your purchase process. Mortgage consultations are free and are provided by most local banks and estate agents however, different lenders offer different rates so we would advise speaking with multiple mortgage brokers and consultants to determine who’s best for you.
Dependent on how much of a deposit you have and the price of the property you wish to purchase will determine how much your mortgage will cost you. The more money you pay upfront (deposit) the less your monthly payments (mortgage) will be. IF after you move in your house rises in value you do have the option of remortgaging which essentially allows you to pull equity from the property into your bank account.
Surveys are always recommended when purchasing a property as they help identify any underlying problems prior to any ownership or money being transferred.
There are three main property surveys:
Surveyors can be found through your solicitor, estate agent or online.
Stamp Duty is a tax you pay the government in order to own a property or a piece of land in the United Kingdom. The price you pay is dependent on the value of the property you wish to purchase and whether you are currently on the property ladder. Luckily, for first-time buyers, the government has introduced a scheme that significantly reduces stamp duty costs to First Time Buyers purchasing a certain value.
We have taken the liberty of attaching the current stamp duty price bands direct from the government website below:
|Property or lease premium or transfer value||SDLT rate|
|Up to £125,000||Zero|
|The next £125,000 (the portion from £125,001 to £250,000)||2%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%|
|The remaining amount (the portion above £1.5 million)||12%|
If you’re buying your first home
You can claim a discount (relief) if the property you buy is your first home. This means you’ll pay:
For more information on moving home, we have created the Ultimate First Time Buyers Guide and it’s completely FREE!
Download your Ultimate First Time Buyers Guide