It is a big investment to move house especially in London and this is why it is important to ensure that everything is done right. There are numerous costs that are incurred, from the cost of buying a property to the cost of hiring removal companies. Knowing these costs in advance will assist you in planning your finances in a better way and you will not be caught off guard. Below is a comprehensive list of what you are likely to incur when moving house.
What Will You Pay When You Move?
| Expense Category | Expense Item | Cost |
The Cost of Buying a House |
Stamp Duty | £2,100 |
| Building Survey | £550 | |
| Conveyancing | £1,050 | |
| Mortgage Fees | £1,000 | |
| Mortgage Valuation Fees | £150 | |
| Homebuyers Protection Insurance | £60 | |
| Total | £4,910 | |
The Cost of Selling a Home |
Estate Agents | £4,150 |
| Conveyancing | £585 | |
| Energy Performance Certificates | £60 | |
| Removals | £550 | |
| Selling Total | £5,345 |
House Removal Costs
Stamp Duty
Stamp duty is a tax levied on the purchase of property in the UK once the value of the property exceeds a certain amount. The average cost of stamp duty for a standard home move is estimated to be £2,100. The exact amount cannot be stated here as it depends on the value of the property and the rates that are in force at the time of purchase. Stamp duty is charged at different rates depending on the price of the property and the type of buyer, with different thresholds and rates for first-time buyers, those buying additional properties and high-value properties. Here are the stamp duty rates:
- Up to £250,000 – 0%.
- From £250,001 to £925,000 – 5%
- From £925,001 to £1. 5 million – 10%
- Over £1. 5 million – 12%
It is important to know this cost at the beginning so that you do not get a shock and it is affordable to you.
House Survey Costs
A house survey is a process of examining the property by a surveyor to determine the condition of the house. This will set you back an average of £550, although the price can vary between £300 and £1,500+ for a standard survey, property, and area. For a property that is worth between £250,000 and £350,000, the cost of a survey will be between £500 and £900. Surveys are useful as they give the buyer a sense of security and reveal any problems that may exist with the property that may need repair or attention.
Deposit
The down payment for a house is usually 10% of the price of the house. However, some lenders may demand up to 20%. On the other hand, some of them provide mortgages with a down payment of as low as 5% and, in some cases, no down payment at all. This deposit is a part of the initial investment and can be quite substantial, but it may differ greatly. This will depend on the lender’s policies and your personal financial standing. This is an important aspect to consider since it has an impact on the overall affordability of the mortgage and the overall financial planning.
Mortgage Costs
Mortgages also have various charges that are paid at the beginning of the process, and these can add up to the cost of moving. These fees are usually between £999 and £1,999. Lenders charge a valuation fee, which ranges from £100 to £300, to establish the property’s value. Also, the mortgage arrangement fees can be as high as £1,000 or even more. If you want to end your current mortgage agreement before the agreed time, you may be required to pay a penalty known as an early redemption charge, which can be quite expensive. A fee-free mortgage broker will assist you in understanding these costs and identifying the most suitable deal that will not cost you any extra fees.
Conveyancing Solicitor Fees
Conveyancing fees are the charges that are incurred in the process of buying or selling a house. These are grouped into two categories, namely legal costs and expenses. For buyers, legal fees are between £300 and £1,500, and disbursements are about £700. If the property is leasehold, then there will be an extra £300. For sellers, legal fees are between £600 and £800, and there may be additional costs for a Leasehold Management Pack, which can be between £300 and £800. It is advisable to compare the prices of different companies and their offers to get the most favourable conditions and avoid additional expenses.
What is the Cost of House Removal Companies?
The cost of hiring a removal company depends on the size of your house and the distance you are moving to. Here are some average costs:
- One or Two Bedroom Home: From £450 to £550.
- Three Bedroom House: £800
- Four Bedroom House: £1,100
- Five Bedroom House: £1,400
These are estimates, and the actual cost of your move will depend on the details of your move, such as the distance and any other services that you may require.
The Cost of House Removals per Hour
The cost of moving home in 2024 is estimated to be £10,255, assuming that a homeowner is buying and selling a home of the average value of £292,000 in the UK. But, the cost may differ based on your area, the property’s worth, and the decisions you make during the moving process.
For a local move within 50 miles, the cost will be between £400 and £500. Long distance travel is costly, the costs rise by about £35 per hour and £1.50 per mile. Moving to another part of the UK costs an average of £1,025. Extra packing services may be charged at £200, depending on the hourly rate of £50 for four hours of work. These figures assist you in planning for the various costs that are associated with moving house.
Factors That Influence the Cost of Moving House: A Review of Literature
Several key factors influence the total cost of moving house:
- Location: Local moves are usually cheaper than long-distance moves.
- Amount of Furniture/Boxes: More items mean more effort and more expenses.
- Number of Movers: Some items may need more people to handle them, especially if they are very large or very many in number.
- Property Size: Larger property usually requires more time and effort to pack and transport due to the fact that there are more items to be transported.
It is not easy to determine the number of hours that will be required for the move. It is advisable to book the movers for the day or set aside some amount of money for extra time to ensure that one is not caught up with unexpected charges. There may be some problems that may occur and may need more movers or more time, and that is why it is important to plan for the unexpected.
Tips for Cost-Effective Moving
The following are some tips that can assist you in controlling your moving costs and therefore reduce the overall costs of the move
- Plan Ahead: It is advisable to start early so that you can compare the prices and get the best prices.
- Declutter: The fewer items you have to move, the less it will cost you to move them.
- DIY Packing: It is cheaper to handle your packing, but it is time-consuming.
- Flexible Moving Dates: It is advisable to be flexible with the moving date since this will enable you to get the off-peak rates.
- Negotiate: It is advisable to try to get a better price from the moving companies that you have in mind.
Final Thoughts
There are many expenses that are incurred when moving house in London, and they can quickly build up. Knowing these expenses and how to prepare for them can help your move go more smoothly and with less of a hit to your wallet. Every step of the moving process is important, including legal fees and removal costs. It is therefore important to be well prepared and informed in order to overcome these challenges and comfortably move into your new home. It is important to plan for the move and set a proper budget so that you can move into your new home without any financial strain.