Have you budgeted for the full cost of moving home?
New research has found that two-thirds of homebuyers underestimate the cost of moving home.The total additional costs of moving home have increased by 25% over the past decade. However, many people's budgets are falling almost £2,000 short of the amount they will actually need.
How should you budget for your move?
When moving house there can be a number of costs that you might not expect, especially if you are a first-time buyer.Here at Farnworth Rose, we've put together a guide on the costs you will need to budget for when moving home.The depositThe largest (and most obvious) cost you will need to take into account is the deposit you will put down on a home.Most people will have a figure in mind as to what they want to raise for their deposit. However, before setting this, it is important that you have included any other upfront costs in your calculations.
What other fees are linked to your mortgage?
Some mortgage lenders will request an upfront cost called an arrangement fee. The cost of these can vary but the average cost is around £1000.You will normally have the option of adding this to your mortgage cost, however, you will end up paying more money in the long run.In some cases, you will be charged a booking fee which can range between £99 and £250.
What legal costs are involved?
When buying a house, you will need to instruct a solicitor to carry out the legal work for your move.Your solicitor will ensure the necessary searches are carried out, communicate with the other side's solicitor and arrange for contracts to be signed.Here at Farnworth Rose, we offer an upfront fixed fee conveyancing quote to make budgeting for your move easier.
Do you need to carry out surveys?
Carrying out a survey is vital to check for any structural defects with the property you are buying.The survey you will need to carry out will often depend on the age and condition of the property you are buying.Although paying for a survey may seem like an unwanted expenditure, it could save you thousands of pounds in the long run by identifying problems early.
Will your house incur stamp duty costs?
If the home you are buying is worth more than £125,000 you will be required to stamp duty land tax.Stamp duty is charged as a percentage of your house price. For instance, if you are buying a home for £200,000, your stamp duty costs will be £1,500 (you pay nothing on the first £125,000 and 2% on the next £75,000).
Talk to the experts at Farnworth Rose
If you're looking to move house, the expert conveyancers at Farnworth Rose are on hand to help your move run smoothly.Our dedicated solicitors can offer any advice you need on the costs of moving and will be there to answer any question you may have on the process.If you'd like to talk to one of our legal experts about your move, call us now on 01282 695 400.Or, if you'd like to receive a quick conveyancing quote online, simply click the button below to complete our online quote calculator.