Moving home can be costly. Here are some of the things you need to budget for when selling your home.
• Energy Performance Certificate (EPC)
• Legal Fees
• Mortgage Early Repayment Fees
• Surveyor’s Costs
• Stamp Duty Tax
• Estate Agents Fees
Energy Performance Certificate (EPC)
When you put your home on the market energy performance certificates must be commissioned. The cost can vary from £75 – £100 +VAT.
Legal Fees
Depending on the solicitor you instruct, and the area, legal fees will vary. Always get 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 instead.
Mortgage Early Repayment Fees
You may incur a penalty from your mortgage lender 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
Surveyor’s Costs
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
The amount charged depends on the purchase price of the property:
• 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 {link to?}.
Estate Agents Fees
Fees vary generally from 1% – 3% +VAT. If you use more than one agent you are more likely to pay a higher commission rate, possibly 3% +VAT or thereabouts to whichever agent introduces the buyer.
For more information or help on any aspects of buying or selling feel free to contact us directly.