Budget and Fees involved!
When selling your house, you need to get a realistic idea of what funds will be available to purchase your next home. Work out your various fees against your mortgage borrowings, any equity and an estimated final sale price of your current property.
Fees & expenses could include:
Marketing - Either for an estate agent or to sell privately. (see 'Choose the Marketing Option' (above) for details of both methods)
Conveyancer/Solicitor - These professionals are required to carry out the legal obligations for your sell and purchase. These fees can vary. Some conveyancers charge a fixed fee and some a percentage (0.5% - 1%) of your property's value. A fixed fee, 'no sale, no fee' could be an appropriate method to use. The representative you choose will liaise with the representative handling the sale of the vendors home you are looking to buy. They will also sort out the land registry searches and fees. Work carried out will include the necessary actions for both properties - the one you are selling and the property you are purchasing.
Removal Costs - Usually two methods are used - a professional removal service which will quote you and the fees will be dependant on your new location/distance, the quantity of possessions to move and the optional packing & boxing of possessions. They can usually also offer storage should you require it. The DIY approach would require sourcing a large enough van, fuel costs and any insurance to cover the movement of your possessions. You also need to factor in any cost involved using the assistance of people and friends, even if its feeding and watering them for the duration!
Mortgage Fees - Any fees for early redemption or changing your mortgage may apply. Lending, arrangement, legal, survey and broker fees must all be considered. Speak to your mortgage lender to ascertain what fees you are eligible for.
Stamp Duty Land Tax (SDLT) - This is a government set fee that you have to pay the HM Revenue & Customs when purchasing a property. The percentage amount due depends on the purchase price of your property. e.g. House purchase of £350,000 will be a total of £360,500 (£300,000 + £10,500 [3%])
For the latest information and to calculate online, visit the HM Revenue & Customs website calculator.
House Survey - Your mortgage lender will normally arrange for a surveyor to visit the property you are purchasing as it is in their interest to safeguard their money on the property they are lending out on.
Home Information Packs (HIPS) - The Home Information Pack also known as the HIP is compulsory for most homes up for sale in England and Wales. Potential buyers can get a HIP for a property as soon as the property is on the market.
A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller's agent. It is a legal requirement to have a HIP and you cannot market your property without one.
The HIP lets buyers see important information about the property at the start of the process, free of charge. This means there is less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.
The HIP is valid for one year, even if the house is taken off the market and put back on within that year. Documentation in the HIP normally expires after three months but this information can still be used for up to a year. For more details, visit the government website about HIPS.
Energy Performance Certificate (EPC) - The Energy Performance Certificate provides an energy rating for a home. The EPC provides a rating of the property's energy efficiency and displays this as a graph, similar to those found on fridges and washing machines. It looks at the performance of the dwelling with regards to heating and lighting. The ratings are on a scale of A-G. A is the best rating. Most homes in the UK have a band D-E. The EPC also states factors which could help to improve the dwelling's energy performance. Any changes as per recommendations will have the owner save money of the fuel bills. The house can also be more attractive to a potential buyer.
Domestic Energy Assessors are individuals that are qualified to survey and record their findings for the EPC. Areas in the house that will be looked at include: loft and wall insulation, the boiler and central heating system, double glazing and the lighting.
