Moving House ‘The Hidden Costs’

The stress of buying, selling and packing can put people off the idea from moving house from the start…….

[quote] Research has shown that moving house is deemed one of the most “stressful life events” that people will encounter up there with divorce and bereavement.[/quote]
September 2012 marked the first time since January 2012 that house sellers decreased, whilst demand from potential buyers has continued to shrink for the last four months.

Richard Donnell, Director of research at Hometrack said “Pricing will remain under slow, downward pressure but the tightening of supply will limit the scale of price falls in the short term”

There is low consumer confidence with the greatest gap between asking and achieved prices continue to be in the northern regions and the time homes are taking to sell has increased to around 10 weeks on the housing market.

From the obvious costs shown in our case studies below, you have got to watch out for the ‘hidden costs’.

 

These can be anything from increasing legal bills to unforeseen problems occurring with the purchase or sale of your properties.  Or it could be those dreaded mortgage companies – are you able to get the extra finance you are looking for…….. If so at what long term cost?

Your new mortgage will often entail having larger repayments to budget for – is this affordable for your household, or will it put a strain financially on your household or lifestyle choices?

Remember to take into account if you are already in a fixed rate mortgage, there may be a penalty to come out of the mortgage early! Or if you are on a tracker mortgage as inflation increases so will your repayments.

The case studies below show on average the costs involved in just moving house according to the economic climate at present.

Case Study 1: Moving from a two bedroom property (£120,000) to a three bedroom property (£155,000) in the West Midlands

Case Study 2: Moving from a three bedroom property (£155,000) to a four bedroom property (£230,000) in the West Midlands.

*House values and costings are based on   averagesCase   Study 1Case   Study 2
Costs (Averages)Costs (Averages)
Estate agents fees (1.5%+VAT)£2,160.00£2,790.00
Stamp duty on new property (1%)£1,550.00£2,300.00
Solicitors costs£2,000.00£2000.00
Mortgage set up fee£1,000.00£1000.00
Removal costs (within 5 mile radius)£600.00£600.00
  
TOTAL   COST£7310.00£8690.00

 

So Moving house does not come cheap!…………………….. A long with all the stress and hassle is it worth even considering?

With those MOVING COSTS you would be half way there to extending your property into the loft or garage…… THINK sensibly in this economic climate with stagnant house prices and many houses in negative equity it is sensible to gain that extra space in your home and wait until the housing market recovers.

 

Loft Conversion Landing with Velux Rooflight in CannockAn average cost of a Velux Loft Conversion is around £18,000.00 and with the average Dormer Loft Conversion being around the £23,000.00 figure.  According to research by Nationwide adding an extension or loft conversions could have the potential to increase the value of your property by almost a quarter.

Nationwide’s house Price Index special report to an average three bedroom house found;

–  An extra bathroom could add 6% value to the property.

–  An extra double bedroom can add around 12%.

–  An extension or Loft Conversion to create double extension and en-suite bathroom could add 23% to the value.

 

So an extension or loft conversion could be the Ideal Solution. It can potentially add value to your property without all those additional moving costs and inconvenience of uprooting your family.

 

For more information from Nationwide visit;

http://www.nationwide.co.uk/mediacentre/pressreleases/viewarticle.htm?ID=2039

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