The costs involved in selling a property

There are a number of costs associated with selling a property, some of which are outlined below.

Energy Performance Certificate (EPC)

EPCs are compulsory with the sale of a UK home and can only be awarded by accredited professionals. The assessment and resulting certificate typically cost between £60 and £120.

Estate agent's fee

Fees can vary depending on which agent you instruct and whether you instruct them on an exclusive or multiple agent basis. Some agents may be prepared to negotiate depending on circumstances. VAT will be added so to estimate this expense, calculate the fee based on the asking price of your property, and add a further 20%.

Property solicitor's fee

Solicitors fees can vary. If you are buying a new home at the same time, using the same solicitor for both transactions can have financial and administrative benefits. Some solicitors will charge by the hour, while others charge a flat fee.

Current lender's fee

If you have an existing mortgage and require a new one, the early termination of your old mortgage may incur administrative fees, or early repayment fees.

Removal and storage costs

If you are selling the property that you presently live in, there may be removal or storage costs when it comes to vacating.

Professional cleaning

You may wish to have your property professionally cleaned before potential buyers begin to view the property.

Repair work

Completing any repairs in advance will incur an immediate expense but can save money in the long term. When market demand is high, however, minor issues become far less significant.

Rental costs

If you live in the property you are selling, a buyer may want to move in before you have been able to buy your next home. If the prospective buyer is unwilling to wait, you may decide to rent a property while you continue the search for your next home.

Bridging loans

If you need to move quickly on the purchase of the new property before the sale of your previous property has gone through, a bridging loan may provide a way to cover the deposit, whilst you are waiting for the proceeds from that sale. Bridging loans can be arranged relatively quickly, and while the interest rate and arrangement fees may be higher than that you would pay on your current mortgage, there are generally no tie in periods and they can provide a helpful short term solution.