Moving from one home to another, regardless of how far away the new property is, or how much smaller the house or cheaper the area is, will be an expensive, lengthy and stressful process. Have you fully researched exactly what you will have to pay out for? And have you taken into account whether you can really afford the costs before deciding to move?• Deposit for your new property: If you are selling your home and buying another you may have some equity in your current mortgage that you can utilise, especially if you manage to sell your property for your asking price. But if you are a first time buyer, you will need to save up to pay for a deposit on your new home, this will be thousands, rather than hundreds of pounds. • Mortgage Fees: on top of your monthly repayments, which will most likely take up the majority of your income as it is, there may also be some additional charges added on top. Here is are some of the most common: o Early Repayment Charges-designed to lock you into the full term of the mortgage, this is a charge that you may have to pay if you are lucky enough to be able to pay the balance of your mortgage off early. o Exit fees: otherwise termed as administration charges or deed release fees, these are charges that you may have to pay for at the end of your mortgage when your balance is cleared to exit out of the mortgage contract. This should be specified in your terms and conditions so you will know what this fee is and if it applies to you, so check before you sign. o Higher Lending Charges: these charges are applied to people who do not have sufficient funds for a large deposit and therefore need to borrow over 90%. As these borrowers are considered high risk an additional charge is placed on the account. o Stamp Duty: stamp duty is applied to your account depending upon various things, such as the value of the property, where it is located etc. For example a house worth £250,000 with have a stamp duty of 1-3% applied to it. • Solicitors Fees: From the start of the home buying/selling process you need to find and hire a solicitor that can take care of all the legal aspects for you. The fees involved in this vary from solicitor to solicitor, so you will need to shop around for a good price from a solicitor that is reputable and well established. • Surveyor charges: you will need to have your home surveyed and a report drawn up stating what condition your house is in, buyers will want to see this before closing a deal. Again, surveyor charges vary from company to company. Your surveyor may tell you that you need a specialised examination conducted on your home (for example if they found wood eating pests) as they may not be qualified to evaluate the extent of some damage if it is outside their specialised area. • Removal Costs: At the very least you will need to pay for a van to help you to move your stuff, unless you have a van handy of course. But if you intend to use a removal service, and some of the additional services they provide such as packaging services and storage facilities, the costs involved can start to mount up. Though this will make your move less stressful and give you some cover in terms of insurance.• Packaging materials and supplies: You will need to buy a variety of boxes, bubble wrap, packaging tape and foam peanuts to help you package and protect your belongings securely. You can hire a professional packaging service to this for you, again at a cost.• Post re-direction charges.
Moving home and the costs involved
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