How to Keep Moving Costs to a Minimum
Moving home can be a stressful and expensive business if not given the property time to plan and research the options available to you. Here we outline the major expenses when moving, ssuggesting the various ways you can shop around, negotiate or take a DIY approach in order to cut the costs involved when moving home.
Estate Agent Fees
When our experts manage your home sale, they can give you the best chance of a quick, painless sale for the best price. We are always clear and upfront on what is included in fees paid – so we will clarify what is included in marketing packages as standard and what is charged as extra (if any), how much access you will have to the team working for you and how viewings and sales follow-through will be handled. Our aim is to ensure you feel like your money has been well-spent in order to reach your home move goals.
Mortgages
Those with equity in their home or a large deposit will have a better choice when it comes to the most competitive mortgage deals, saving you paying over the odds in the long term. Lenders can reel you in with attractive headline rates, but always make sure to check the full details as rock-bottom offers sometimes come with fees attached. There are a variety of mortgage types to choose from and we work with a local adviser that can help advise what the most suitable financing product fits your circumstances. Boost your deposit where you can, shop around for the best deal available to you and keep an eye out for any incentives/help to buy schemes available, particularly if you are a first-time buyer.
Home Report & Surveyor Fees
All homeowners selling their property in Scotland are required to produce a home report, which can cost anything between £500 – £700 plus VAT, depending on surveyor fees – shop around to strike a balance between reliability and affordability.
Land & Building Transaction Tax
Replacing Stamp Duty, home buyers in Scotland now have to pay Land and Building Transaction Tax when purchasing any land or property, applicable on all properties over £175,000 from June 2018, more information in our previous post here. The new incoming LBTT tax rates will go as follows, with zero tax on properties up to £175,000, 2% on properties between £175,000 -£250,000, 5% between £250,001 – £325,000, 10 % between £325,001 – £750,000 and 12% on any properties bought for £750,000 plus. These taxes are compulsory but it may be worth keeping the thresholds in mind and negotiating property prices down in order to make tax savings.
Solicitor Fees
Moving house will involve you employing a solicitor or licensed conveyancer to manage legalities. Costs will cover the conveyancing along with so-called disbursements, which include Land Registry Fees and local authority searches. You will be looking at paying around £850-£1,500 for legal fees, including VAT at 20% – as solicitors’ fees vary, it’s worth taking the time to get a number of quotes.
Removal Costs
Hiring professional removals companies can take the stress and heavy lifting out of moving home but come at a cost – hundreds or even thousands of pounds depending on how large scale or long-distance your move is. There is always the option to take the DIY approach and save money by hiring a van and completing the packing, loading and unloading yourself or with the help of friends and family. Other practical tips include giving a good declutter before any house move, meaning less to move and you could even raise a few funds by selling on any unused or unwanted items. Collecting packing materials (boxes, crates, newspaper, bubble wrap) in the months up to your house move also helps cut any unnecessary costs for packing materials.
If you do want to use a removal service think about moving outside peak times (peak times usually being the end of the week, end of the month or during holiday periods) and make sure any finances are well spent by using reliable recommended companies.
Home Insurance
Another cost to remember as you’ll want your contents to be covered in-transit during any house move. Most mortgage providers also ask for cover to start at your new address from the date that contracts are signed. Again, it pays to shop around for the best deals available in order to make a saving.