Financial Costs Involved when Moving Home

If you’re about to buy a new home it is essential that you have assessed every aspect of the sale and the costs that will be involved with it. Regardless of whether you’ve moved home many times or this is your first time, checking off what costs you are going to meet is vital in ensuring you aren’t left out of pocket before you’ve even moved into your new home.

Firstly, there will be your mortgage, (unless you’ve been lucky enough to afford to buy the house outright). Before going ahead with your mortgage have a look into the costs that are going to be involved; see how big a mortgage you can afford at the interest rates available, taking into consideration that these costs could rise.

Your mortgage will be based on how much you are earning, and it is normally three times your annual salary, and if you are moving in with a partner, this will also add to the amount available to you. You will also need to put down a deposit, which will be a certain percentage of what the property is valued at, so check to see what percentages lenders are offering. This is a great way to assess how much you are going to be able to afford before you start looking for properties, allowing you to look within your given price bracket.

Once you have decided on your lender, the mortgage will need agreeing in principle, which proves to those buyers and estate agents that you are serious and can afford to buy a home.

Extra Fees When Moving House

Always remember to put some money aside for other costs including property surveys, valuations and mortgage fees. There is also stamp duty involved – you can calculate how much this will be by using a calculator available on the Inland Revenue’s website.

Factor in the costs of insuring your home, with buildings’ insurance and contents’ insurance as well as any decorating or furniture that you may also require. It is also recommended that you look into getting a Will once you own a home, particularly if you have dependents.

Choosing a Solicitor / Conveyancer

As well as all of those other costs, there will also be the legal costs involved in the paperwork for selling your home. You can decide upon a conveyancer or solicitor to carry out these necessary requirements, and you will find that some offer a price based on the amount of work that is involved, while others will have a fixed price in place.

When choosing your solicitor it is also good to go with a local one who has been recommended to you, but if one hasn’t been then always do your research before deciding upon one. The solicitor will be responsible for preparing the contract between you and the seller, while also being responsible for negotiating the contracts.

Once all of the legal aspects of the property are ready and your finances are ready, then you will be ready to exchange contracts with the seller. This is when you will be required to pay 10% of your deposit, with the sale being completed once all of the money is transferred. You will then be able to pick up the keys from your estate agent and start the moving process!

Choosing a Removal Firm

The physical involvement in moving home can also meet with some costs as you need to hire people to help with the move. Try to find a reliable company that has come recommended to you, or ask your solicitor / estate agent if they can recommend someone.

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There is an association called the British Association of Removers (BAR) and if the removal company is a member of this and there are issues involved when they help you move home, you can raise a complaint through them and they will then take it further for you.

Before you get some costs from these companies, try to work out just how much of the move you can carry out yourself. There are different removal services in place; for example, you can pack fully yourself or you can have them pack and remove the furniture for you.

Once you have decided on how much you are going to do, start contacting companies for quotes. Always ask if insurance and VAT are included in their prices and don’t pay any deposits until you have a definite completion date that has been certified by your solicitor.

Firms will vary quite significantly, with some offering more than others, so always get a full breakdown of the prices involved in the move before choosing which firm to go with. For example, some removal companies will give you surplus amounts of bubble wrap, boxes and tape, while others will allow you a certain amount before charging you for any extras you may need.

Finally, check the contract to see how many hours are covered in their hourly rate and what the costs are if you are charged extra after these times.

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