The cost of moving house.. TBC!

user1977

dealio123 said:

@Noneforit999 when you say mileage do you mean the distance between sold house and purchase house? I am moving 150 miles away

I presume it was meant in the sense of the idiom, not literally:

https://dictionary.cambridge.org/dictionary/english/your-mileage-may-vary

(from the disclaimer in adverts about car fuel consumption)

dealio123

@user1977 i thought as much 😂 but worth checking! was clutching at straws to work out why i’m paying so much haha but thank you. 

TonyMMM

Our recent move cost us about £30k in tax and all fees.

Not something I'd want to do too often...

dealio123

@TonyMMM gosh that is a lot! totally agree i’m hoping I can stay put in my next place for a long time. 

Hope you’re happy in your new home ☺️

Noneforit999

dealio123 said:

thanks for sharing @housebuyer143 & @MrCarrot, really interesting to see others costs, i too will be keeping a spreadsheet!

@Noneforit999 when you say mileage do you mean the distance between sold house and purchase house? I am moving 150 miles away, and really trying to work out why my fees are alot more expensive than most, again might be with the fact i’m selling a leasehold and purchasing a new build but it’s not mentioned anywhere explicitly in the quote so unable to tell. next time i move i will 100% get multiple quotes, and would love to save on EA fees and do online as they’re always a big portion! 

Poor choice of words on my part but I meant everyone has difference circumstances which will vary the price. The leasehold sell and new build buy might explain the price difference actually.

We sold for £1200 recently and are purchasing for £1650 in Kent. Both freehold though and not a new build. 

dealio123

hello again, sorry something dawned on me today and as you can tell from the time of posting it’s keeping me up! i did contact my solicitor earlier but no response as of yet. 

i’m very confused about the whole exchange deposit & mortgage deposit… and as helpful as google is, it’s confused me even more 

chain 

FTB > me > new build 

purchase price new build 395,000

sold price 280,000

equity in property 53,000

mortgage deposit - 15% (85% LTV)

lender requires 15% as it’s a new build - £59,250

• £6250 shortfall/difference savings required
• the rest will be made up from my equity

exchange deposit - 10% 

ftb buyer buying my property - 28,000 (10% of the purchase price) 

me - 39,500 (10% of my purchase price) 

• 11,500 shortfall / difference 

very confused, do i need to produce that 11,500 to make up the 10% for exchange? 

ps i appreciate the 11,500 will incorporate the 6250 so it’s essentially only another 5250 to find. 😂 but on top of my already extortionate moving costs, i’m honestly not sure if it’s do-able as they’re pushing for exchange in 2 weeks.. and again stupidly i hadn’t accounted for this 🤦🏻‍♀️

hope the above makes sense and hope someone can shed some light, thank you in advance! 

Mutton_Geoff

dealio123 said:

hello again, sorry something dawned on me today and as you can tell from the time of posting it’s keeping me up! i did contact my solicitor earlier but no response as of yet. 

i’m very confused about the whole exchange deposit & mortgage deposit… and as helpful as google is, it’s confused me even more 

chain 

FTB > me > new build 

purchase price new build 395,000

sold price 280,000

equity in property 53,000

mortgage deposit - 15% (85% LTV)

lender requires 15% as it’s a new build - £59,250

• £6250 shortfall/difference savings required
• the rest will be made up from my equity

exchange deposit - 10% 

ftb buyer buying my property - 28,000 (10% of the purchase price) 

me - 39,500 (10% of my purchase price) 

• 11,500 shortfall / difference 

very confused, do i need to produce that 11,500 to make up the 10% for exchange? 

ps i appreciate the 11,500 will incorporate the 6250 so it’s essentially only another 5250 to find. 😂 but on top of my already extortionate moving costs, i’m honestly not sure if it’s do-able as they’re pushing for exchange in 2 weeks.. and again stupidly i hadn’t accounted for this 🤦🏻‍♀️

hope the above makes sense and hope someone can shed some light, thank you in advance! 

Your sums are a bit back to front, probably because of the way you are thinking about who is buying the house and how it's funded.

It would normally be presented like this:

Purchase Price £395,00
Funded by:
Proceeds from sale £53,000
Mortgage £335,750
Savings £6,250
TOTAL £395,000

Just curious where the selling agents fees are coming from, removal costs, purchase legals & disbursements, SDLT (£7,250)?

Is the agents fee already removed from the amount of £53,000 you say you have as equity? If not then the sale proceeds could look like this, the sum you need to do before inserting your "proceeds from sale" above.

Sale price £280,000
Less
Mortgage redemption £227,000
Agents Fees £3,360 (1% plus VAT)
Legals £1,000
Balance for new property £48,640

Of course, these are guestimates for the actual numbers but you don't mention them in your sums. As for the lack of the full 10% when moving upwards, solicitors sort this out amongst themselves with a handshake or by adjusting your purchase deposit to 5% etc. It would be rare you'd have to find this money only to then receive it back but I am curious if you've accounted for all costs in your move?

dealio123

@Mutton_Geoff bless you thank you so much for replying! 

appreciate your feedback, im new to this whole buying/selling so apologies if anything was badly worded/laid out. 

if you look at the original post you will see all of my “moving costs” as i was the OP! some of your guesstimates are accurate ☺️ others eg legal fees sadly are not! also i need to repay HTB (20%) so the mortgage redemption figure is different. 

rightly or wrongly, i’m putting all of the “equity” (53k) into the purchase of my new home. so for any of the fees/taxes these are all funded by savings but they are rapidly depleting day by day as everything is adding up! perhaps i’ve gone about all of this the wrong way ☹️

but good news re. the solicitor handshake, makes sense and hoping that will be the case. 

thanks again!

Mutton_Geoff

dealio123 said:

@Mutton_Geoff bless you thank you so much for replying! 

appreciate your feedback, im new to this whole buying/selling so apologies if anything was badly worded/laid out. 

if you look at the original post you will see all of my “moving costs” as i was the OP! some of your guesstimates are accurate ☺️ others eg legal fees sadly are not! also i need to repay HTB (20%) so the mortgage redemption figure is different. 

rightly or wrongly, i’m putting all of the “equity” (53k) into the purchase of my new home. so for any of the fees/taxes these are all funded by savings but they are rapidly depleting day by day as everything is adding up! perhaps i’ve gone about all of this the wrong way ☹️

but good news re. the solicitor handshake, makes sense and hoping that will be the case. 

thanks again!

It's not the wrong way to do it and no need to apologise to me! I am suggesting you might find it easier to itemise (as you have) the costs of selling up, then the proceeds, add your savings etc then calculate purchase price/costs and where the money is, how you will access it during the purchase process.

Once you have the proceeds of sale, (the £53k) it's no different from the money you are saving/earning, it's just all free cash to put towards your purchase but it does sound as if you're stretching yourself with little or no contingency funding. Since you are being careful and aware of your costs, perhaps you just need to lay it out better on paper and in your mind. I find it easier to have two sets of calcs, one for the sale then a balance after everything done, then the purchase and a list of all the costs providing a total then where that money is all coming from, including any savings you can accrue in the time it takes to buy.

Atomix

If you were buying a £400k property when we last bought a house, pretty certain SDLT was 3% of the total.

So 12k vs your 7k.... so 5K saved there?

(just looking at it another way - to make you feel better)