Moving house is a great milestone in your life. There are so many things to think about and that is part of the adventure when planning such a big change. However it can become stressful especially during a pandemic and not knowing the full costs are can have a knock-on effect with your finances.
There are many different factors that contribute to extra costs when moving home. It depends on where you are moving to next, how big the property is, if you’re a first time buyer, how much the new property your moving into costs and whether there’s a significant change in maintenance bills.
Identifying any hidden costs is an effective way to keep track of any extra fees you may incur when moving.
Here are the most overlooked costs when moving:
- Stamp Duty: this land tax varies on the price of the property you are purchasing and if you own any other properties already.
- Legal Fees: this includes any fees to transfer the property title deeds, mortgage completion and any other aspects of legal work (shared ownership, ISAs, new build equity loans, etc.).
- Buildings insurance: depending on the property, you may need to get buildings insurance before being able to qualify for a mortgage.
- Money transfer fee: if a solicitor isn’t taking the lead to transfer the funds, you may need to look into other payment transfer methods which can have added fees.
- Mortgage arrangement fee: there could be an arrangement fee for your mortgage but there may be a possibility that the lender will offer a no up-front fee to pay. This depends on the interest rates.
- Estate agent fees: If you’re selling a property, you’ll need to look at estate agent fees. However if you’re buying a house for the first time, then this doesn’t apply.
- VAT: look into all the VAT charges on any fees within the house moving process from the solicitor to the estate agent fees.
- Property fraud fee: when your solicitor works with the other solicitor with whom is working for the people wanting to buy your property, your solicitor may want to carry out a check for safety and security purposes. There is sometimes cases of fraud when homes are being sold so it’s better to check.
- Maintenance fee: if you’re moving into a property with a shared communal space such as hallways in a block of flats or garden space, there are sometimes costs within that which are usually monthly.
- Moving costs: remember that there are the extra costs of moving home including boxes, removal fees and insurance.
Some other smaller hidden costs can include:
- New furniture
- New items for the house (utensils, bedding, etc.)
- Getting your post re-directed
- Installing your Wi-Fi in the new property
- Changing gas, electricity and water providers
There are so many elements to think about and making that decision to move takes a lot of planning and precision, but it will all be worth the while when you’re settled into your new home. It’s always better to be extra prepared with identifying the costs beforehand so you are not overwhelmed with any additional fees you weren’t aware of previously.
Look into all those additional costs as early as possible and you’ll fly through the process, leaving time to enjoy those exciting moments of moving house.