Six Costs To Consider When Selling Your Property
by Rizwan Osman on 4th March 2019
Selling a property – and possibly buying another property at the same time – is no walk in the park. The financial burden is heavy, and the emotional burden can be equally so. The more you can do to plan ahead and prepare for the sale of your property, the better.
Planning and preparation will naturally involve setting aside money to fund the cost of selling a property (and buying another property, if this is relevant to you). In doing so, you’ll need to consider what costs will be involved, and this is where we can help.
Below, we’ve offered a lowdown of the potential costs involved when selling a property to make you aware of them, and to reduce the likelihood of nasty surprises popping up further on down the line.
Energy Performance Certificate (EPC)
The property seller must provide prospective buyers with an EPC certificate so that buyers are aware of the property’s energy rating and performance. You will need to purchase a new EPC certificate if the current one is out of date (an EPC is valid for 10 years). The cost of an EPC certificate is between £60 – £120.
Conveyancing fees will vary depending on the value of the property you are selling. The solicitor or conveyancer can charge you a fee based on a percentage of the value of your property, while other conveyancers will charge a flat fee. If you are buying another property concurrently, it is advisable to employ the same conveyancer to manage the legal aspects of buying the new property. For the seller, conveyancing fees can cost anywhere between £700 – £1,200.
Removal company fees
If you live in a small property and have few possessions you want to move, you can simply hire a van and take care of everything yourself or hire a ‘man with a van’ service where you have help moving your possessions. But if you have an entire house of furniture and valuable items to move, it makes sense to leave the task to a professional, fully-insured removal company. Removal fees can vary hugely depending on the service and how much you have to move. If you have a lot to move, fees can range from £800 to more than £2,000. You can get quotes and compare prices beforehand to get the best deal.
Estate agent fees
Fees will vary from estate agent to estate agent, and it’s always worthwhile to compare up to three local agents before making a decision. You’ll need to calculate the fee in relation to the guide price of your property, then add VAT.
Mortgage lender fees
Do you have an existing mortgage? If yes, you can usually transfer the existing mortgage to a new property. But selling a property is a good time to see if you can benefit from re-mortgaging. If you choose to re-mortgage, you may incur repayment and administrative costs. At a time when you want to save on your outgoings as much as possible, it’s worth seeking professional advice to ensure you get the best deal and make the right decision.
Capital Gains Tax (CGT)
Do you live in the property you are selling, or is it a holiday home or buy-to-let property? If it is classed as a second property, you may have to pay CGT if you sell the property for more than you paid for it.
There will be other costs to factor in when selling a property, but the above are the main ones to consider. If you are buying another property at the same time, then you may also need to cover the cost of a home survey, of renovation or refurbishment work, and stamp duty.
If you’re planning to sell a property in Tooting, Clapham or the surrounding areas, we are well-placed to help you with a smooth sale. Contact our sales team today for a sales property valuation.