Question about home move costs

Tiddleshalifax

This might sound stupid (sorry - novice here)
when selling a home and upsizing, what costs should reasonably be expected (not associated with the move but the house)
coveyencing for both your current and intended properties, estate agent fees?
I presumed that as we should have our deposit from our equity - this would cover the deposit and nothing would need to be paid in addition? Is that right?

mind is in overdrive as when we bought we were FTb and now we are home movers. 

Flugelhorn

removals 
stamp duty
replacing things that vendors may take eg fridge / freezer etc 

re deposit - would have to discuss with solicitors but often the deposit gets moved up the chain and the vendors solicitor will hopefully accept less than 10% on exchange 

ele_91

Estate agent fee - varies widely but I’ve usually paid around 1.5% of the sale price. Some also do fixed price or you can go down the Purple Bricks, Strike route etc which may be cheaper but have their drawbacks. 

Conveyancing to sell - depends on house value but around £1k, more if it’s a leasehold
Conveyancing to buy - More than you pay to sell as you have searches, etc included. Also depends on value of house - if you are buying somewhere more expensive, expect to pay more than when you were a FTB. I am buying a house worth £325k and conveyancing to buy is around £2k all in. 

Survey - Around £500 for a home buyers report
Valuation fee if you are getting a new mortgage, again depends on house value. 

Removals - dependent on house size but could be up to £2k. If you are in a chain it will be more difficult to DIY move as you need to move out of your current house and into the new one on the same day. 

Redwino222

I have budgeted £10k for my house move - this is mainly driven by

conveyancing, estate agent fees, mortgage fees, stamp duty, removals and Incidentals 

Tiddleshalifax

Thank you!

it will be below Septembers increase to the threshold so don’t have to worry about that. 

I’d presumed we could take the deposit from our equity as the mortgage will be redeemed upon completion? Is that not the case?

thanks

davilown

Tiddleshalifax said:

Thank you!

it will be below Septembers increase to the threshold so don’t have to worry about that. 

I’d presumed we could take the deposit from our equity as the mortgage will be redeemed upon completion? Is that not the case?

thanks

Yes it’s quite normal for your deposit to come from the equity you are bringing from your current house.

AnotherJoe

davilown said:

Tiddleshalifax said:

Thank you!

it will be below Septembers increase to the threshold so don’t have to worry about that. 

I’d presumed we could take the deposit from our equity as the mortgage will be redeemed upon completion? Is that not the case?

thanks

Yes it’s quite normal for your deposit to come from the equity you are bringing from your current house.

Not the deposit on exchange, no.  It can't because you don't access that equity until your house is sold on completion. The exchange deposit is actual money that is moved. So it is not and cannot be from your equity.   Your equity makes up the difference, along with your mortgage, upon completion. 

What usually / often happens is that the deposit paid by the bottom of the chain makes its way up from one house to the next. So you end up paying less than customary 10% deposit upon exchange. This is subject to agreement from your vendors but that is the norm these days. If your vendors won't agree you'll have to find the money or pull out. 

Look at this post which explains it well 
https://forums.moneysavingexpert.com/discussion/comment/78283648#Comment_78283648

Tiddleshalifax

Thanks. 

I shall have a look at that this afternoon 

pinkteapot

Things you need cash on hand for when you're selling and buying simultaneously: 

1. Mortgage application and/or survey fees (some mortgage products let you add them to the mortgage but that's not an MSE way of paying for them due to the interest over the life of the mortgage). 
2. The difference between 10% of your sale price and 10% of your purchase price so you can top up the deposit on exchange - IF your vendor doesn't agree to take a smaller deposit. Anecdotally that's rare though - in a lot of chains a smaller deposit just passes up. 
3. Removals - bear in mind that if you're selling and buying (with no temporary accommodation in between) you cannot make multiple trips to and from the house you're moving out of - you need to get everything out in one go, so you're generally beyond the realm of self-moving. At a minimum you're likely to need a man and van, but more likely a big van or a few vans. Removals generally want paying at the end of the day of the move, so you any equity released during the sale probably won't be in your account yet - but you could pay on credit card if the company accepts it and those house funds are on their way. 

Your solicitor will take their fee plus any stamp duty owed from the sales proceeds, and also pay the EA from them. So, provided you have sufficient equity + new mortgage to cover the purchase price of the house and those fees, you don't need cash in the bank for them.