Selling Tips: What You’Ll Pay When You Sell Your Home In London

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Posted on: 6 September 2021

Selling Tips: What You’ll Pay When You Sell Your Home in London

There are many costs associated with selling a home in REMAX . From estate agent fees to legal charges, to the costs associated with actually moving.

Preparing Your London Home for Sale

Many sellers find that giving their home a refresh before placing it on the market is the best way to entice the broadest range of potential buyers.

This might include:

  • Repainting walls
  • Hiring professional cleaners
  • Paying for a storage unit to hide away excess furniture and personal items

If you hire professionals for these jobs, then costs will be incurred.

Getting an Energy Performance Certificate

An Energy Performance Certificate (EPC) is a document that outlines how energy-efficient your home is. Every home needs a valid EPC before it can be advertised for sale, and it is the seller’s responsibility to ensure it is in place.

The certificate will grade your home on a scale of A-G. Those sitting at the bottom of the chart may be less attractive to potential buyers, as it indicates that the costs of running the home will be substantially more.

These certificates can be obtained from any accredited company. However, there is no uniform fee. The price will vary depending on the location and size of your home but usually start around £60.

It should be noted that an EPC is valid for ten years, so it may be the case your property already has a valid document.

Mortgage Charges

You may incur a mortgage exit fee when selling your home.

A mortgage exit fee is a charge that your lender may issue when you close your mortgage account down. This can range anywhere between £25 and £300. However, be sure to check your original mortgage document, as not every lender demands this payment.

Alternatively, some homeowners choose to ‘port’ their mortgage. ‘Porting’ is the process of transferring the mortgage over to the new property, removing the need to exit the mortgage and apply for another. This forms the ideal situation for many, as it can potentially save thousands of pounds.

However, the mortgage will need to be reassessed as the charge will now be held against a completely different home. The lender will examine the circumstances and, where appropriate, will simply transfer the debt from one home to the next.

However, it is always best to investigate current deals and offers, as it may be more financially savvy to move to a different lender rather than ‘port’ an existing loan.

Estate Agent Costs

Working with a good estate agent in London is crucial when selling your home.

Agents will deal with the process of advertising your home and conducting viewings on the property. They can also assist with the negotiation process, which will help increase the speed at which you have a legitimate offer in place.

Understandably, the fees that estate agents charge vary dramatically and the fee will also depend on the location and of course the service that the agency provides.

Most agents work on a ‘no sale, no fee’ basis. Meaning, if your home does not sell, you will have nothing to pay.

The fee generally ranges between 0.75% and 3% + VAT of the total sale price. For less expensive properties, agents may instead work on a fixed charge basis.

Online agents tend to request much lower and often fixed rates. However, the service they offer is usually very different to what you can expect from the more experienced high street businesses.

Legal Fees

Conveyancing is the legal process of transferring the home from one owner to the next.

Once you have accepted an offer on your home, you will instruct a conveyancing solicitor to deal with this process.

Conveyancing fees can vary depending on the property you are selling, but average between £750 – £1500. The charge is commonly paid on the day that the sale completes.

Removal Expenses

Of course, there are many logistical costs associated with the process of moving. These might include hiring a van or a whole removal team, depending on your family’s needs.

Should you suffer from an interim period between completing the sale of one property and your next purchase, you may also incur storage costs. Many also choose to insure their valuables for this period, ensuring anything broken in transit can be replaced.

REMAX are your local property experts for the London area. We can advise you on all aspects of your home move.

Call us on 0203 092 2987 or email info@remaxrightstep.co.uk to chat with a member of our friendly and experienced team.

 

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