Trying To Understand The Cost Of A Sale

It’s impossible to say just how much selling and buying a house at the same time will cost, as it depends on an individual’s situation.

However, we’ve provided a run-down of the most basic costs that are more than likely to occur if you’re selling your property with a traditional estate agent. 

Capital Gains Tax

For example, you might need to invest in improvements to the house you’re selling and the one you’re buying, or you might have to pay fees such as Capital Gains Tax.

Mortgage fees

The first fee to consider when deciding whether or not to sell your home and buy another is any charges that may come with changing your mortgage. If you’re still in your initial mortgage term, you need to check whether or not your mortgage is portable or not. If it is, there may still be a small fee involved, but this shouldn’t be an excessive amount.

However, if your mortgage isn’t portable, you’ll essentially need to pay it back when you sell, and then begin a new one when you buy. Many mortgages will charge you a percentage fee for paying off your mortgage early – and if you have negative equity, this could end up being quite expensive.

Estate agent fees

If you’re selling with a traditional estate agent, they will usually charge you between 0.50% and 3% of your sale price.

When it comes to buying another house, there shouldn’t be any estate agent fees to pay.

Energy performance certificates (EPC)

This is mandatory when selling a house, so, unfortunately, you can’t avoid this cost. Before you put your home on the market, you need to obtain an EPC certificate, which looks into the energy efficiency of your home.

You need a credited assessor to do this for you, so you’re usually looking at a charge of around £75-£90. You can usually obtain them through your estate agent, but you can also shop around online to look for a better deal.

Conveyancing fees

You’ll need to have both the house you’re selling and the one you’re buying conveyed, and solicitors’ fees for this can be steep. Depending on whether or not your home is freehold or leasehold, and whether or not it has a mortgage, fees can range from around £600-£2500. If you are buying and selling at the same time, this amount may double.

Removal costs

Removal costs are unavoidable – unless you have your own mode of transport or a friend or family member who’s willing to help you move to a new house. Removals are often charged depending on the number of rooms in your house, the number of goods being transported, and the distance between the house you’re selling and the one you’re buying.

As an extremely rough estimate, you could be looking at a charge of anywhere between £100 and over £1000. Be sure to shop around online to get a good few quotes before choosing a removal company.

Don’t forget, you’ll often be charged more if you’re asking that they remove or pack items for you – do this yourself for a cheaper price.

Potential Extra Costs

• You might need to prepare your property for sale depending on its condition; the cost will depend on the work that is needed.
• Although it is not required legally, the buyer’s solicitors started to request a Gas Safety Certificate which may be around £100 and Electrical Installation Condition Report (EICR) at around £150.

I hope this post is useful to you. Please do let me know if you have anything to add, and I will gladly consider it and add to the article if it helps my readers and don’t forget, if you need further advice/assistance or would like to reach out you can find my contact details below. 

Josephine – Your Trusted London Property Partner

Tel    : +44 (0) 7491 430055

email: josephine@josephinedayan.com