Moving into a new house can be an exciting experience. On the one hand, you get to go through old stuff, discard unwanted property, acquire new property and even have a change of environment. However, on the other hand, moving might not be so exciting for your pockets. This is because the cost of moving house can be expensive. The cost of moving house can have a toll of your finances if you are not prepared for it.
It is important that you are aware of the average cost of moving house so that you can plan better and maybe even save some extra bucks. The cost of moving house is usually determined by some variables. In this article, the cost of moving house will be broken down so that you do not face any financial shocks down the line.
The costs you should consider are broken down into upfront costs and costs on the day.
The upfront costs will include:
- Insurance fees
- Valuations and surveys
- Stamp duty
- Legal fees
The costs on the day will include:
- The fees for redirecting your mail
- The fees for a temporary storage
- The cost of hiring a removal company
- The costs of hiring a cleaning agency
- Insurance fees: This protects you from any damage to the building which might affect its value. Building insurance also covers fixtures that are permanent. Fixtures such as bathrooms and fitted kitchens. Insurance fees are part of upfront costs and contribute significantly to the cost of moving house in the UK.
- Valuations and surveys: A survey of the building is usually done by a professional to identify any problems in the building which may cost you money in the future. You will have to pay the professional that conducts the survey. Surveys are not compulsory but they are really important as they can save you a lot of money in the future.
A survey may range from a basic survey which may cost around £270 to a comprehensive survey which can cost anywhere between £500 to £2000. However, this is depending on the size of the building.
- Stamp duty: A stamp duty is a tax you might have to pay when you buy a house. If you are going to buy a house in Northern Ireland or England then you might not pay the stamp duty tax at all. This is if the cost of the house is less than or equal to £500,000 but you will need to pay the stamp duty tax for houses that cost more than £500,000. In Scotland and Wales, you will be required to pay a Land and buildings transaction tax (LBTT).
- Legal fees: Contrary to unpopular opinion, you need a solicitor to take care of the legal aspects of your contract. Buying a house or renting an apartment can sometimes get complicated. Legal advice helps you avoid these complications. Whether you are buying a new house or you are renting an apartment, the effect of the presence of a solicitor cannot be overemphasized. You should consider adding legal fees to your cost of moving house.
You can also decide to hire a licensed conveyancer because they are usually cheaper but you should know that they are not qualified to handle complex legal matters.
You should expect to pay between £800 and £1500 for legal fees. The definite price will finally depend on the solicitor you hire. You should also verify whether the cost of legal fees includes VAT, Search fees, and Land registry fees.
If the solicitor you hire does any extra work because of your peculiar circumstances, you will be charged for it. A perfect scenario is when you decide to collaborate with a friend to buy a house. Your solicitor will have to write up a deed of trust. This would stipulate what happens if one of the parties decides to move out or decides to sell their share. This extra work by your solicitor will attract extra fees.
Cost of moving house on the day.
- Fees for re-directing your mail: since you will be moving to a new house, you should consider the fees for re-directing of mails. The prices range from £33 to £66 for 12 months. Redirection can easily be done online.
- Cost of hiring a removal company: hiring a removal company will significantly contribute to the cost of moving house in the UK. However, it is worth it because it saves you a lot of time and energy. If you do not have big furniture, you can simply hire a self-drive van. If the removals are light then you can hire a man with a van (it will be cheaper to go with these options). If you have a lot of property and heavy furniture, then you should probably go with a removal company. The price you pay for a removal company will depend on the agreement you reach with the company. Make sure that the removal company you choose to hire is insured.
- Fees for temporary storage: You might need to store some of your possessions before moving. This will no doubt add to the cost of moving house. You might need a 50 square feet unit of space or 150 square feet unit of space depending on the size of your property. The prices for each will vary but be prepared to pay up to £140 per month or more.
- The cost of hiring a cleaning agency: if your current property is rented you should check what your tenancy agreement stipulates. If it states that you would have to use a preferred cleaning agency, then you should add that to your cost of moving house. This way you are certain that your tenancy deposit is secured.
For a comprehensive cost of moving house in the UK contact us at myconstructor.co.uk to get a detailed breakdown of your cost of moving house.