When you're moving, nobody minds parting with hard-earned savings to help set up a mortgage (heck you're just glad someone's going to lend you the money to buy your dream home!). But coughing up thousands for stamp duty, estate agents' fees and all those other 'hidden' moving costs can really grate.
A survey by property portal Propertyfinder.com showed that the average cost of moving house in the UK has more than tripled over the last 10 years, to nearly £9,500. Add in mortgage lenders' and surveyors' fees, and essential household bills and the average new homeowner can expect to spend over £11,000 in the first year alone, according to GE Money Home Lending.
With the current economic climate, budgeting for the move has never been so important.
This is a tax on buying property and accounts for nearly half of all the moving costs on the average home. The amount charged depends on the purchase price of the property, but most buyers pay this tax.
Up to £125,000- Zero
£125,001 to £250,000- 1%
£250,001 to £500,000- 3%
£500,001 to £1,000,000 - 4%
£1,000,001 to £2,000,000 - 5%
£2,000,001 plus - 7%
In areas designated by the government as ‘disadvantaged’, there won’t be stamp duty to pay on properties sold for £150,000 or less. For further advice, go to the HMRC's website.
The loophole that allowed people to reduce their stamp duty bill by paying over the odds for fixtures and fittings has been closed. You have to fill in a detailed form and the Inland Revenue makes random checks of cases that fall just below the stamp duty thresholds to check people aren't pulling a fast one.
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