Moving house is an exciting step, whether you’re upgrading to a bigger home or relocating for work. But while you may have factored in the big-ticket items like the deposit or mortgage, the true cost of moving often hides in the small print. If you’re planning a move in the UK, here’s a breakdown of the hidden expenses that can take a surprising toll on your budget.

1. Solicitor and Conveyancing Fees

One of the unavoidable costs of moving is hiring a solicitor or conveyancer to handle the legal aspects of transferring property ownership. From reviewing contracts to conducting local authority searches, these professionals ensure the process runs smoothly.

• Estimated Cost: Between £850 and £2,000, depending on the complexity of the transaction and the property price.

2. Stamp Duty Land Tax (SDLT)

Stamp Duty is one of the most significant costs when buying a property in the UK. The amount depends on the property’s value and whether you’re a first-time buyer, an investor, or buying a second home.

• First-Time Buyers: No Stamp Duty on properties up to £425,000.
• Residential Purchases (main home): Rates start at 0% for properties under £250,000 and increase to 5% for the portion between £250,001 and £925,000.

For example, if you purchase a property worth £400,000, you’ll pay £7,500 in Stamp Duty (this is correct at the time of writing).

Use the HMRC Stamp Duty Calculator to get an accurate figure for your purchase.

3. Mortgage Broker Fees

A mortgage broker can save you time and effort by finding the best mortgage deal tailored to your needs.

• Estimated Cost: £500 to £1500 on average (here at Bee Financial, our fees start from £299 depending on your case).

4. Removal Costs

Moving your belongings is another cost to consider, and the price can vary significantly depending on how much you’re moving and the distance involved.

• Estimated Cost: £300 to £1,500 for a professional removal service.
• Additional fees may apply for packing services, temporary storage, or disassembling/reassembling furniture.

5. Emergency Fund

No matter how well you plan, unexpected expenses are almost inevitable when moving house. Broken appliances, redecorating, or fixing unforeseen issues with the new property can add up quickly.

• Recommended Emergency Fund: At least £1,000 to £2,000, though more may be prudent if you’re buying an older home.

6. Other Costs to Keep in Mind

Surveys and Valuations

A property survey helps identify structural issues or other potential problems.

• Basic Valuation: Typically this will be carried out by the lender and may come with a cost.
• Homebuyer’s Report: Around £400 to £1,000.
• Full Structural Survey: Up to £1,500, depending on property size.

Utilities and Council Tax

You may need to pay overlap fees for utilities like gas, electricity, and broadband, especially if you’re moving mid-billing cycle. Updating your council tax account is essential to avoid overpayment.

Redirection of Mail

Keep your post secure by setting up a Royal Mail redirection service.

Estimated Cost: Around £33.99 for three months.

Moving is a milestone worth celebrating, but understanding the hidden costs can help you plan smarter and avoid unpleasant surprises. By budgeting carefully for these additional expenses, you’ll ensure a smoother transition to your new home. If you’re thinking about moving soon, contact us today to discuss your options.

Annabelle Bezant, November 2024