Moving home can be a costly experience, as we know. Here are some of the items that you will need to budget for when selling your home.
Energy Performance Certificate (EPC)
Energy performance certificates must be commissioned when you put your home on the market. The cost can from £75 – £100 + vat.
Legal fees will always vary depending on the solicitor you instruct and the area. Always obtain a written quote in advance and ensure that you are advised of any potential further costs that may arise. Fees may vary from £300 – £800 + vat. You may pay a little less by using a licensed conveyancer (opens in a new window) instead.
Mortgage Early Repayment Fees
You may find you will incur a penalty when you redeem your existing mortgage. This is more likely if your current mortgage deal involves inducements such as a discounted or fixed-interest rate. Check with your lender whether they will charge. If they do, you may be able to persuade them to waive it, especially if you are prepared to take out a new mortgage with the same lender.
Some lenders charge exit fees on existing mortgages (typically £150 to £300). If you are taking out a new mortgage, you will need to factor in arrangement fees (which could be up to £2500). Your mortgage lender will also charge you a valuation fee (£175 + vat) but remember this is not a detailed survey. It simply checks the property is valued correctly rather than looking for detailed defects in the property
A homebuyer’s report carried out by a surveyor will throw up any serious defects and a full structural survey provides a detailed report. Either survey could save you thousands in the long run, especially in older properties and may also provide leverage for negotiation on price. Surveyor’s fees vary but as a guide a homebuyer’s report starts at approximately £300 and a full structural survey at approximately £500 (depending on size of the property and state of repair).
Stamp Duty Tax
The amount charged depends on the purchase price of the property.
Stamp Duty Fees Payable
Up to £125,000- Zero
£125,001 to £250,000- 1%
£250,001 to £500,000- 3%
There are areas designated by the government as ‘disadvantaged’. Stamp duty is waived in these area on properties sold for £150,000 or less. For further advice please visit the HMRC website.
Fees vary generally from 1% – 3% plus vat. If you use more than one agent you are more likely to pay a higher commission rate, possibly 3% plus vat or thereabouts to whichever agent introduces the buyer.