Gransnet forums

House and home

Page 1 of 1
Flip | Customise

Moving costs are too depressing

(11 Posts)
Add comment | Report
linksdom Tue 10-May-16 15:46:03

We live in London and have slowly worked our way up the housing ladder over the last however many decade (I appreciate we are extremely lucky to be on the ladder at all and to own a property)

Now the children have left home we have more space than we need so have made the decision to downsize. We have seen a little house we want to buy. It's not dissimilar in price to the one we are selling but it's in a much nicer area with a lovely community feel and many of our friends live there (not far from where we are now but we much prefer it) so it's as much about lifestyle as the house itself

It's been a good decade since we last moved and in this time stamp duty has gone through the roof. Even having negotiated with the agent we are selling with to the lowest percentage those costs are also high. Then you have to factor in solicitors and surveys and searches. The latter are not the end of the world but when you add everything up you realise that moving costs alone are going to be tens and tens of thousands of pounds.

I'm finding it totally depressing that the very act of moving is going to use up all our savings and more and that we will end up with a bigger mortgage on a smaller house which seems madness.

We could of course stay put but the area has changed a lot since we moved here and we don't feel particularly safe - also it is not good for transport or shops which as we get older is something we wanted to think about. Almost all our friends live where we want to move to.

We are trying to plan for the future in practical terms but appear to be decimating our financial future by doing so. No longer sure what to do

(Yes - we could move to a cheaper area but then we would also be moving away from friends and family. And we have also considered a smaller property but need (and want) somewhere for family to come and stay so a one bedroom property doesn't work for us)

Add comment | Report
pennylope Tue 10-May-16 16:11:45

I feel for you. My DD has been in this position recently in London. They were very lucky that their house had gone up since they bought it and were delighted to think they had equity for a new property. But it's all a bit meaningless because the rises in London have meant upsizing is impossible for most. So unless they move away it doesn't really do them any good at all.

A friend of theirs moved recently and paid nearly a hundred thousand pounds in moving costs! (Stamp duty, agent fees for selling, solicitors and surveys and various other charges) And no it wasn't a mansion it was a 3 bed and a box room terrace in an ok area but no parking that they bought. The world has gone mad

Add comment | Report
tanith Tue 10-May-16 16:11:46

If you want to hang on to some savings then the only answer really is to stay put or buy something that leaves enough from the sale of your present house to pay the fees and moving costs.. can't think of any other alternative.

Add comment | Report
Ana Tue 10-May-16 16:42:57

A hundred thousand pounds in moving costs? shock

You could buy a small terraced house for that round here! grin

Add comment | Report
pennylope Tue 10-May-16 16:48:58

That is north London for you

It's ludicrous

Add comment | Report
tanith Tue 10-May-16 17:02:30

pennylope they must of included the deposit in those costs as the average costs for moving in London are below 20K according to the National Statistics Office.. I did think 100K was an OTT figure as my friend moved within London in the last two years and it cost less than 10K including all the other fees as well as moving..

Add comment | Report
pennylope Tue 10-May-16 17:18:06

No. That's what I thought too. But...the house was some figure over a million pounds (and only a wee terrace!) not sure exactly but the stamp duty was upwards of £65,000. The estate agency charged something like 1.5% on the sale of the original house and that ended up being (all the figures approximate as can't remember the exact ones but the ballpark stayed with me because I was so shocked) £15,000 so that's £80,000 before you factor in surveys and solicitors for buying and selling and searches and removal vans and so on. I can see how it would have been at least £90,000. It's terrifying. Not sure how anyone in London manages to move ever

Add comment | Report
tanith Tue 10-May-16 17:25:28

Well I guess they weren't exaggerating then shock

Add comment | Report
CariGransnet (GNHQ) Tue 10-May-16 17:25:42

pennylope yikes!

But as one who has lived in N London for a long time I can well believe it.

Tanith - I guess it varies within London both in terms of area and size of property but the prices are staggering (especially to one who has come from the North!) and with the high percentages on stamp duty I think that ONS figure is VERY optimistic.

Plenty of areas round these parts where these days 2 bed flats go for £700,000 upwards*. That would be stamp duty of £25,000 without factoring agency and other costs.

I'm thinking of moving to the Hebrides

*saw one when out nosing and playing fantasy house buyer strolling the other day. 3 bed flat. £1.275m! Obviously I considered purchasing a matching pair shock

Add comment | Report
Av1dreader Tue 10-May-16 17:32:51

On the Rightmove website they have a moving costs calculator.

Add comment | Report
J52 Wed 11-May-16 07:25:15

As I have mentioned before, we have moved in the past month. So much has changed! It was nearly 30 years since we last sold and the cost of doing so has risen alarmingly, not just with inflation! There are extra costs involved with EPC reports, marketing involves glossie brochures to keep up with the competition! ( fortunately these were 'included' in our fees!)
The solicitors costs for searches etc. are more detailed and thus cost more. Also you have to prove where the money is coming from, for money laundering legalities!

If you require a mortgage ( we didn't ) there are other fees associated with arranging it and extra surveys that were not there when we had a mortgage.

I was happy to see that packing, removal, and storage were within the prices we expected! No wonder people are staying put and extending, upwards, outwards and downwards!
Moving is not to be entered into lightly, nowadays.

Page 1 of 1
Flip | Customise