Moving house can be expensive as there is much more expenditure involved than simply the cost of the new property. Costs associated with selling a current home include estate agent’s fees, energy performance certificate and legal conveyancing costs. Whilst purchasing a new property will include stamp duty, mortgage valuation/survey fees, legal conveyancing costs and other legal fees and searches.
There are some costs that cannot be avoided such as Stamp Duty Land Tax, which has to be paid by the buyer to the government for selling the house. There is an exemption for certain designated disadvantaged areas if an individual buys a property that is worth less than £150,000.
Estate agents are not essential when selling a property although many people use them. The fees they charge vary from area to area. Choosing a cheaper firm can save money, but this has to be weighed against the quality of service provided. The alternative is to sell your home yourself online. There are a number of websites that offer services to individuals wishing to sell their homes. Some sites are free and offer a basic DIY approach whilst others charge fees and offer more services. Sellers should check carefully all the fees charged and remember that you still have to pay other costs such as stamp duty and legal fees.
Solicitors and Surveyors
Solicitors and surveyors again are not essential. Individuals can do their own conveyancing and there are free online DIY conveyancing packs available. However, this requires that the individual is competent and willing to do the job or there could be legal problems later on. There are two types of survey, a basic one and a full structural survey. The difference in cost between a basic survey and a full structural survey is considerable but it is a good idea to have a full survey if you can afford it. It is essential to have the survey done by a professional surveyor because if there is a serious structural fault with the new property finding out before the purchase can save a lot of money and heartache.
Costs that can be reduced or eliminated are cleaning, removals and storage. These can be done by the individual depending on how much needs to be moved. If you do decide to choose a professional removal firm there are various ways of reducing the costs. Get a range of quotes and in big cities consider companies from outside the immediate area that may be cheaper. Agree a price up front, move earlier in the week when they will be less busy and book early. Providing your own packing materials can also reduce the cost, as can throwing away stuff you don’t need and doing your own packing. Moving some of the items into storage can also be less expensive. Disconnecting and uninstalling your own large appliances such as washing machines and refrigerators will also save money.
During your move you may have the need for a loan to tide you over. There are various organisations that offer short term lending, including banks, online loan companies and a new form of lending known as peer-to-peer lending. The latter cuts out intermediaries such as banks and has advantages for both lenders and borrowers. Often lenders get higher returns and borrowers lower interest rates than they would with traditional lenders.