Costs of Selling and Buying a Home Explained

When you are buying and selling a property at the same time, property prices will be an important factor in your financial calculations but there are lots of costs that you might overlook.

Professional fees are generally higher in London than other areas of the UK, so before you start house hunting or put your property on the market, it is a good idea to get a better idea of the potential costs involved. 

If you are buying or selling a high-value property in areas such as Mayfair, Fitzrovia or Marylebone where average property prices are significantly higher than the UK average, fees that are charged as a percentage of the property value will be higher for properties in the most desirable parts of London. 

Here is a breakdown of all the potential costs involved in buying and selling a home in London: 

Costs of buying & selling a house summarised 

If you are buying and selling a property at the same time, this summary of costs will help you to plan your finances and potentially save money on certain types of services – from conveyancing fees to options like equity release. 

What are the home selling related costs? 

These are the typical costs to expect when you sell a house in London: 

Estate agent fees 

When selling your home, one of the most significant costs will be estate agent fees, which are most commonly charged as a percentage of the sale price. The fees range from around 1% to 3% of the property value plus VAT, so in Maida Vale where the average property price was £870,000 in the last 12 months, a 1% agent fee for this house value would be £8,700 plus VAT, and a 2% agent fee would be £17,400 plus VAT.  

Some estate agents offer a fixed fee which can sometimes be more cost effective, but it is important to check which services are included for the fee and to ensure that the agent has experience in selling similar properties.   

Conveyancing/solicitor fees (selling) 

Another significant cost to budget for when selling your home is conveyancing fees covering the legal work involved in selling your property. Conveyancing fees tends to be lower on the selling side, as the buyer pays for searches. Typical conveyancing fees for selling a London property are around £1,000 to £3,000, and costs vary depending on property value and complexity of the legal work.  If you are selling a leasehold property, there will be some extra paperwork for the conveyancer to complete, costing around £300.  

EPC certificate 

It is a legal requirement to have an EPC certificate before selling a property in the UK, so that buyers have the energy performance information about the property before they decide whether to make an offer. An EPC costs between £60 and £120, depending on the size of the property.  

Mortgage exit fees/early repayment charges 

If you have a mortgage with a fixed term and you switch to a new mortgage deal, you will usually need to pay an early repayment charge or exit fees. An early repayment charge is usually between 1% and 5% of the outstanding loan balance, depending on how many years are left in the term. 

Some home movers port their mortgage and keep their existing mortgage deal, so there are no early repayment charges or exit fees. Similarly, if you are on a standard variable rate mortgage, there is not usually an early repayment charge. 

Home staging/preparation costs 

Getting your property ready for the sale may also incur some costs if you need to make some small repairs. Sellers sometimes choose to pay for professional home staging to boost the visual appeal of the home and attract the desired type of buyer. Home staging costs around £300 upwards, depending on the company you choose, and the types of staging accessories required. 

Removal/storage costs 

Removal companies usually charge higher rates in central London areas, so if you are hiring removal services, you can expect to pay at least £500 to £1,000 or more for larger quantities of belongings. Removal costs will also be higher for longer distances between the properties and if you require additional services such as unpacking of your items. Another cost to consider is storage costs if you are not moving straight into your new home after selling your current home and need to store items for a period. 

Want to find out more?  Explore our articles on things to do when moving house in Central London, find out about how to negotiate a house price effectively and learn about how to choose an estate agent in Central London.

What are the home buying related costs? 

There will also be some additional buying costs to account for, such as: 

Stamp Duty Land Tax (SDLT) calculations 

Stamp duty tax applies to all properties in England or Northern Ireland valued at over £125,00 (or £300,000 for first-time buyers). The stamp duty is calculated based on the value of the property, so you will pay more stamp duty if you are buying a property in the higher price range. 

For example, for a property purchased at £800,000, you would have to pay stamp duty of £30,000. Payment must be made to HMRC within 14 days of purchasing the property and your solicitor will arrange this. 

Conveyancing/solicitor fees (buying) and searches 

When you are buying a property, you will have legal fees for the conveyancing work and searches. Conveyancing fees for buying a property will be around £2,000 to £3,000 plus approx. £300 to £400 for searches. When you are getting conveyancing quotes, it is worth checking whether there are any discounts if you use the same conveyancer for the legal work on both the buying and selling side. 

Survey costs (homebuyer/building survey) 

It is highly recommended that you have a home survey completed before purchasing a property to check for any issues that may not be obvious on viewings. There are three different levels of home survey: 

• Level 1 – £300 to £900 
• Level 2 – £400 to £1,000 
• Level 3 – £650 to £1,500+ 

Level 1 is a basic condition report generally suitable for new builds, while a Level 2 is more comprehensive and is generally recommended for standard, modern properties. For high-value, complex and older properties, a Level 3 survey will involve more thorough investigations of structural integrity and hidden defects. 

Mortgage arrangement fees 

If you are taking out a new mortgage to purchase the home, you may be required to pay mortgage fees. The potential mortgage costs include a booking fee of around £100 to £200 and a mortgage arrangement fee, typically £1,000 to £2,000. You can use comparison tools to compare the different mortgage deals available to find lower interest rates, deals with the lowest fees and total mortgage costs. 

Valuation fees 

Your mortgage provider will usually require a valuation survey to check the property is worth the amount that you are paying. Most mortgage providers cover these costs but if not, the valuation could cost around £1,000, so it is a good idea to check this before choosing a mortgage deal. 

Land Registry fees 

Your conveyancer will arrange for your Land Registry fees to be paid, which will be between £150 and £500 depending on the value of the property you are buying. 

What about bridging finance costs? 

In some scenarios, homebuyers use bridging finance, for example, if buying a property before selling their existing home. This provides a loan until the other property is sold and the proceeds of sale can be used to pay it off. These are some of the costs you may need to pay if you use this finance option: 

• Arrangement fees (typically 1% to 3% of the loan amount) 
• Valuation fees (around £300 to £400) 
• Legal fees (£500 to £2,000) 
• Exit fees (approx. £500) 

Want to know more?  You can also read about our first time buyer guide for Central London, discover tips on capital gains tax when selling a property and explore staging your home to sell in Central London.

Cost when buying & selling a house FAQs

Conclusion

When you are buying and selling a home at the same time, using experienced and proactive conveyancers and estate agents will help to ensure the process goes as smoothly as possible.  

If you are considering moving home, our experienced team will be happy to help. We offer a personalised approach, with local market expertise across Regents Park, Soho, Camden and surrounding areas of central London. Get in touch to find out more about our services and to arrange a valuation.