Moving house is an exciting, albeit stressful, life event. While many of people budget for the obvious expenses such as estate agent fees and mortgage deposits, it’s easy to overlook a number of hidden costs that can creep up during the process. Understanding these additional expenses can help ensure that your move doesn’t strain your finances more than necessary.
Stamp Duty Land Tax (SDLT)
In England and Northern Ireland, Stamp Duty is a tax paid on property purchases over a certain threshold. As of 2024, first-time buyers purchasing properties up to £425,000 are exempt, but if your home is valued higher, or you’ve bought before, this can add thousands to your moving budget. The rate is tiered, starting at 5% for properties above £250,000. It’s crucial to factor this into your financial planning as it’s payable within 14 days of your home purchase completion.
Legal and Conveyancing Fees
Legal fees are often one of the larger hidden costs. You’ll need a solicitor or licensed conveyancer to handle the legal side of your house purchase, such as conducting local searches, drafting contracts, and liaising with the seller’s solicitor. Fees for this service typically range from £850 to £1,500, but can be higher depending on the sale’s complexity or the property’s location. Additionally, VAT is usually added on top of these costs, so be sure to confirm the total amount with your legal representative.
Surveys and Valuations
Before committing to a property purchase, it’s wise to arrange a survey. Mortgage lenders will often require a basic valuation, but this only confirms the property’s worth, not its condition. Homebuyers are encouraged to get a more thorough survey, such as a HomeBuyer’s Report or a full structural survey. Prices for these range from around £400 to over £1,000 depending on the depth of the survey and the size of the property. While this is an upfront cost, it can save you from costly repairs in the future.
Read more: 11 Ways to Make Moving Fun for the Family
Removal Costs
Many people forget just how much hiring a professional removal service can cost. Depending on the distance and size of your move, you could pay anywhere from £300 to £1,500. If your new home has difficult access, such as narrow streets or parking restrictions, additional charges may apply. Always make sure you are turning to a reputable moving company like Finest Van to help. If you’re packing yourself, don’t forget the cost of packing materials like boxes, bubble wrap, and tape, which can easily add another £50 to £100.
Storage Fees
If there’s a gap between moving out of your old property and into your new home, you may need to store your belongings. Storage units can cost between £20 and £50 per week, depending on the size and location. This can add up quickly, especially if your move gets delayed for any reason.
Utilities and Council Tax
When moving house, remember that utilities such as gas, electricity, water, and broadband may come with connection fees. Some providers charge a new connection fee, which can range from £30 to £100. In addition, make sure you budget for council tax in your new area, as rates can differ significantly depending on the property’s banding.
Redirecting Mail
It’s a good idea to set up a mail redirection service through Royal Mail to avoid missing important documents or bills. This typically costs between £35 and £75 for three to twelve months of coverage.
