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 solicitors fee: Solicitors fees can vary depending on a number of factors. 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, including Londonwide Conveyancing, will 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, a number of 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
- Capital Gains Tax: if you are selling a property that you do not live in, then you may have to pay Capital Gains Tax
We do not charge for our advice. Instead, we simply charge a fee for arranging your mortgage of up to 0.5% of the mortgage amount. A typical fee is £499.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Kinleigh Financial Services undertakes credit broking and is not lender.