Selling a house can be surprisingly expensive, even outside of stamp duty and property prices. Whether you’re moving across the country or just down the road, you’ll find there are plenty of costs to consider when selling a house in 2022, including…
- Estate agent fees
- Conveyancing
- EPC documents
- Mortgages
- Removal costs
- Tax
Luckily, we’re here to breakdown these costs, so you can sell your home with confidence.
How much does it cost to sell your property?
Moving house is often ranked as one of the most stressful things you can undergo – not to mention the most expensive. Even when simply selling a property, there is a range of costs that will add to your bill.
Estate agent fees are one of the biggest culprits when it comes to escalating finances, as they’ll charge a percentage of the sale of your home. The more expensive the property, the bigger the fee!
Alongside this, there are mortgage considerations, legal fees, and other obscure costs that can creep in.
Total everything up and, on average, it can cost between £3910 – £11,920 to sell a house in the UK.
This is based on the current average cost of a UK property, which stands at roughly £270,000.
Broken down, your bill will include the following…
Estate agent fees: £2700 – £8100
Conveyancing fees: £750 – £2000
Energy Performance Certificate: £60 – £120
Removal company fees: £400 – £1700
However, this is a best case scenario. You may find there are other costs involved, such as…
- A mortgage exit fee
- Early mortgage repayment charge
- Capital Gains Tax
- Porting a mortgage
- Home report (if selling in Scotland)
So, you may find you need more money to hand than you originally thought.
How much does it cost to sell through iBuying?
Instant buying (iBuying) is one alternative to traditional selling routes, and is rising in popularity thanks to the convenience and speed involved. In exchange for a 10-15% discount on the market value of your home, an iBuyer will be able to provide an instant cash offer on your house.
While this means you lose a fraction of the acquired equity of your home, it will help you save on the short-term fees, which you’ll be paying directly out of pocket.
The average cost of selling a house with an iBuyer is £1050-£3700. All you have to cover is the conveyancing fees and moving costs.
Estate agent fees
Estate agent fees can vary depending on whether you choose a high-street company or an online agent.
High street estate agents typically change between 0.75-3% of the agreed selling price. You’ll also need to check whether or not this percentage covers VAT, as some agents charge for this on top of the price set out.
Remember: you can always haggle for a better deal. Ideally, you want to push for a rate around 1.3% that also includes VAT.
What are online agents?
In the last 10 years, there’s been a new kid on the estate agent block, who charge significantly less than their high-street counterparts. Typically an online estate agent will charge between £100 – £1000.
Online estate agents originally emerged as a bare bones service that allowed a homeowner to reduce the cost of selling their house by providing their own marketing information and manage their own viewings.
However, in recent years, these services have expanded their offerings and can be more hands-on (for an increased fee).
Energy Performance Certificate (EPC) costs
Don’t forget, you are legally obligated to obtain an EPC before you sell your home. You can either purchase yours from an estate agent or through the government’s EPC register.
It should only cost between £60 and £120, and will let future buyers understand how energy efficient your home is.
Home reports (Scotland)
For those of you in Scotland, instead of just an EPC you’ll need to commission a home report. These are more expensive, typically costing between £580-£820.
It’s worth bearing in mind that in Scotland the seller is the one responsible for surveys, rather than the buyer. Your home report will include…
- A single survey
- Energy report
- Property questionnaire
As part of the energy report section, you will also obtain an EPC.
Solicitor fees for selling a house
As with estate agent fees, conveyancing costs are tied to the value of your property. The larger the transaction, the more you’re likely to pay.
On average, a solicitor will cost between £750 – £2000.
Typically, when it comes to putting your bill together, the costs will fall into two categories: legal fees and disbursements. The legal work will be covered by your solicitor, while disbursements refers to the third-party charges that came up during the conveyancing process, such as searches.
Should you remortgage or port?
If you’ll still need a mortgage after selling your house, then you’ll need to consider your finance options. Namely, are you going to port your existing mortgage? Or seek out a new deal by remortgaging?
Porting your mortgage
Porting your mortgage simply means that you want to move your current deal over to your new home. This is a relatively easy process, especially if your next property is the same price as your current – or even cheaper. In these two scenarios, all you’ll need to factor in is the cost of a valuation (although some lenders may cover this for you) and make sure your finances are up to a credit check.
Remortgaging
If the property you’re buying is more expensive or you’ve reached the end of your mortgage agreement (meaning you’re now on a pricey standard variable rate), then it’s advised you consider a remortgage.
Do bear in mind that finding a mortgage yourself may prove cost-effective in the short term, but spending that little bit more to bring on board a mortgage broker does typically result in reduced costs in the future.
Mortgage fees
Porting a mortgage can incur an arrangement fee, typically between £100-£500.
Likewise, you may find yourself paying up to £300 if you want to remortgage and there’s a mortgage exit fee in place.
Other mortgage fees could include…
Booking fee: £100 – £250
Valuation fee: £150 – £1000
Early repayment charge
Watch out for an early repayment charge! If you’re on a fixed-term mortgage and you want to get out of this early, you may have to pay between 1-5% of what’s remaining on your loan.
For example, if you have £250,000 left on your mortgage, it may cost between £2,500 – £12,500 to get out of the deal early.
Removal costs
On average, it can cost between £400 – £1700 to move your things from one property to the next.
Prices will vary depending on…
- Size of your property
- Size of van required
- Quantity of professionals required
- Whether you want furniture assembly include
- Distance between properties
If you want to save yourself money, it’s always an option to hire a van and carry this job out yourself. However, many find the process very labour intensive and it might not be worth it, should multiple trips be required.
Capital Gains Tax
Some properties will be subject to Capital Gains Tax. Essentially, if your property isn’t your main residence and you stand to profit from the sale, then you’ll have to pay between 18% – 28% in tax.
Homes included under Capital Gains Tax
- Buy-to-lets
- Holiday lets
- Business premises
- Land
Some inherited properties may also be included. However, spouses and civil partners will be exempt. Likewise, if you’ve already paid inheritance tax, then capital gains may be waived.
Preparing your house for sale
On top of all the fees associated with selling your house, you’ll also need to work out how much it’ll cost to get your house appealing to future buyers. This may include…
- Hiring professional cleaners
- Repainting
- Landscaping your garden
- Door and window repair
- Boiler repair or replacement
Overall, these small touches could set you back nearly £2000 – or more, depending on the scale of the work involved. Those of you comfortable with DIY will have the easiest time, but it never hurts to invest in professional quality work, especially if it means you get your house off the market that much faster.
Is your lease below 80 years?
Speaking of appealing to future buyers, you’ll find many buyers put off by a lease that only has 80 years or less left. This is because after 80 years you will pay significantly more to extend, and new homeowners already have to wait 2 years before they’re able to do this themselves.
What’s more, if your home has under 70 years left, mortgages will start to get more expensive. If you hit the 60 year marker, you may even find the property deemed un-mortgageable.
Extending a lease could cost between £2000 – £20,000, depending on the time left. Work out how long is left on your lease and then reach out to a solicitor to understand your options.
