The Real Cost of Moving House - Part Three
Welcome to the third part of our guide to the real cost of moving house, called (with a touch of inspirational genius) ‘The Real Cost of Moving House – Part Three’. We’ve already looked at matters including conveyancing and Stamp Duty Land Tax (SDLT) with fees and costs paid to or through your solicitor, as well as costs paid to other parties such as the estate agent’s fee. To conclude, here are more (but not necessarily all; every situation is different) of the costs you might need to pay as you buy your home.
Land Registry Fee: Land Registry is a government department with responsibility for registering the ownership of land and property in England and Wales. Land Registry currently safeguards land and property ownership totalling over £4 trillion. Anyone buying or selling land or property, or taking out a mortgage, must apply to Land Registry to register a new owner of registered land or property; unregistered land or property, or; an interest affecting registered land or property, such as a mortgage, a lease or a right of way. In short, when you buy a property, you need to pay Land Registry to transfer the ownership into your name.
Like SDLT, the Land Registry fee depends on the value of the property you are buying. However, the Land Registry fee is much less than SDLT (probably hundreds of pounds rather than the thousands of pounds likely with SDLT).
If you have engaged a solicitor to help you buy your property – and you absolutely should have done, because buying a home without help from an experienced and skilled conveyancing solicitor is extremely risky – your solicitor will ordinarily pay your fee to Land Registry on your behalf. The solicitor will then add the cost to his or her fee.
Energy Performance Certificate (EPC): If you are selling your current home as you buy a new property, you will need an EPC for your potential buyers. (By extension, you should see the EPC for the property you are buying.)
The EPC will contain information about your property’s energy use and typical energy costs, alongside recommendations on how those costs can be reduced.
EPCs, which are valid for 10 years, rate the energy efficiency of properties from the most efficient (A) to the least efficient (G).
EPCs are not needed for residential buildings which will be used less than four months a year or for temporary buildings that will be used for less than two years.
Mortgage Broker Fee: Mortgage brokers engage with mortgage lenders on your behalf to find the best terms and rates for your requirements. If you have used a mortgage broker, you might be charged a fee but, as some mortgage brokers are paid commission by lenders, the service might effectively be ‘fee-free’ to you. You should make sure you understand the financial implications of your relationship with a mortgage broker before committing. For example, a fee of 1% of the loan amount could rise to an expensive level if you are borrowing a large sum of money.
Be cautious about paying a fixed fee up front to a mortgage broker. You might not be able to recover the money if, for whatever reason, you end up not going ahead with your move.
Removal Costs: And so the exciting day of the move finally arrives. The cost of the removals service will depend on factors including the volume of your possessions and the distance of the transportation. You will also need to decide if you or the removals company will provide the packing materials and physically pack the items.
Moving house can be a stressful time for all involved. If you'd like to ease the process, our conveyancing solicitors are effcient providers of residential conveyancing services. Discuss your requriements with us today.