The costs of moving home, explained

Legal fees and disbursements

Your conveyancer is the legal professional who handles the transfer, and the legal fee, plus VAT, pays for their work. It usually rises with the price and with complexity: a leasehold flat, a new build, shared ownership, a gifted deposit or a linked sale and purchase all add work. You usually pay it at completion, often with a payment up front for searches.

Disbursements are third-party costs your conveyancer pays for you and passes on. They typically include:

• Searches: checks with the council, the water company and other bodies, such as a mining search where relevant.
• Registration fees for recording you as the owner, which in England and Wales are HM Land Registry fees set by law and based on the price.
• Identity checks.
• For leasehold homes, landlord or managing agent fees, for example for registering your purchase.

The fee for sending your money by same-day bank transfer is the law firm's own charge, with VAT, not a disbursement. Your conveyancing quote lists each cost separately and marks anything not yet known as "To be confirmed". Our quote guide explains them.

Property tax

Property tax depends on where the home is, the price, whether you are a first-time buyer and whether you will own another home. Each slice of the price is taxed at the rate for its band:

• England and Northern Ireland, Stamp Duty Land Tax: 0% up to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5 million and 12% above. First-time buyers pay 0% up to £300,000 and 5% to £500,000, with no relief above £500,000.
• Wales, Land Transaction Tax: 0% up to £225,000, 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above. There is no separate relief for first-time buyers: they pay the same rates.

An additional home costs more: 5 percentage points extra on each SDLT band, or the higher LTT rates in Wales. Non-UK residents buying in England or Northern Ireland pay a further 2%. Your conveyancer usually pays the tax for you just after completion. Explore your figures with our stamp duty calculator.

Surveys

Your lender's valuation only tells the lender whether the home is worth the loan. A survey tells you about the home's condition, and the Royal Institution of Chartered Surveyors (RICS) sets three levels:

• Level 1 Home Survey: a basic condition report, suited to newer, conventional homes.
• Level 2 Home Survey: more detail for most conventional homes in reasonable condition, with or without a valuation.
• Level 3 Home Survey: the most thorough, for older, larger, unusual or run-down homes, or if you plan major works.

The cost depends mainly on the level and the home's size, value and location.

Mortgage and broker fees

Mortgage fees vary between deals, so compare the total cost, not just the interest rate. Common fees include:

• An arrangement or product fee, which you can often add to the loan, although you then pay interest on it.
• A booking fee, paid when you apply and often not refundable.
• A valuation fee, which some lenders waive.
• A broker fee, which may be a fixed sum, a percentage of the loan or nothing at all if the broker relies on commission from the lender.

If you are selling, check your current mortgage for an early repayment charge (a fee for leaving a fixed or discounted deal early) and any exit fee. Moving the mortgage to your new home, known as porting, can sometimes avoid the charge.

Costs when you sell

Estate agents usually charge a commission (a percentage of the sale price, paid on completion) or a fixed fee, with VAT on top, so check whether a quoted fee includes VAT. Sole agency, with one agent, usually costs less than multi-agency, with several. Online agents often charge a fixed fee up front, whether or not the home sells.

Before you market your home in England, Wales or Northern Ireland, you need an energy performance certificate (EPC), which rates its energy efficiency and lasts for 10 years. You will also have the legal fee for your sale and, for a leasehold home, a fee for a management pack (information about the building and its finances).

Removals and storage

Removal costs depend on how much you are moving, how far, and how easy access is at each end, such as stairs, lifts and parking. Packing, specialist items such as pianos and insurance for goods in transit all add to the price. Popular moving days, such as Fridays and the end of the month, can be harder to book.

If your sale and purchase complete on different days, you may need storage or somewhere to stay. Get quotes early, but only confirm a date once contracts are exchanged and completion is fixed.

Insurance, utilities and council tax

In England, Wales and Northern Ireland, you are normally responsible for buildings insurance from exchange of contracts, and your lender will require it. Most leasehold flats are insured through the service charge (the yearly charge for running the building), but you will still want contents insurance.

Take meter readings on completion day, set up your energy and water accounts, and book broadband early. Council tax, or domestic rates in Northern Ireland, is payable from the day the home becomes yours. Some councils charge extra on second homes or long-term empty homes, so check before you buy.

A contingency and a final checklist

Even a well-planned move can bring surprises, so keep a contingency: money set aside for the unexpected, such as a repair found by the survey, a delayed completion or a few days of overlapping bills. Before you move, work through this checklist:

• Get a conveyancing quote and check what is included.
• Work out your property tax.
• Choose the right survey.
• Compare mortgage fees as well as rates.
• If selling, agree estate agent fees in writing and order your EPC.
• Get removal and storage quotes.
• Arrange buildings insurance to start on time.
• Plan for utilities, broadband, council tax and any service charge.