Congratulations on moving home! Are you fully aware of how much this move will be hitting your finances?
Moving home is by far the most stressful thing we’ll ever have to do in our lives.
It takes a lot of planning, many lists, and a lot of remembering things you shouldn’t forget!
However, when you start the moving process, you notice the extra finances being dwindled away to things that you didn’t think about but were really important to factor into your moving budget.
Not accounting for everything possible is more than just a case of a financial setback or 3; this can cause distress, embarrassment and can really taint your experience of moving home.
All of these unaccounted-for out-of-pocket scenarios can and will happen, so how do we avoid these popping up when moving home and make the already stressful occasion a little easier to manage?
Let’s have a look at some really simple ways to manage your overall budget and look at some of the different elements that could arise, so we can see them and create a smooth move into a new home.
Know your initial costs
Right before you plan anything, you must get your financial bearings.
When you are not 100% informed on the costs that surround purchasing a home, it’s complicated to figure out how to properly budget for these unknown costs of the actual move itself.
Firstly, you need to establish the correct figures for:
- The mortgage payments
- The solicitor’s fees
- Administrative costs,
- Essential Financial Costs
- Legal Fees.
Only after these actual figures have been marked out and accounted for will you be able to see how much excess you will have leftover to cover your secondary costs.
It’s important to note here that costs may vary depending on the service providers you will be using and the location of your new residence.
For Example, Suppose you are moving to Bristol and transporting your belongings there as part of your home move. In that case, you’ll actually be heading to a city that sports one of the highest numbers of millionaires in the UK outside of London.
Bristol is an area that attracts wealthy people, and those areas tend to have higher costs associated with a move there.
Get ready for moving costs.
There are lots of them!
Here are some of the costs you should factor into your secondary budget for moving house, and these are all about the physical and practical aspects of moving house.
Although it is really easy and very tempting to ask for help moving from friends and family to save costs, it’s actually much better to hire a professional removal company.
You can expect to shell out around £545 for a complete removal service, according to an article that quotes figures from Rightmove, located on the website of the consumer organisation Which?
A huge consideration needs to be made to what you are actually taking with you.
Do you even use that weightlifting bench?
Do you really want to take that tired-looking old armchair you never liked anyway?
Moving home is the perfect time to get rid of some junk you may have hoarded over the years!
Here’s why…As well as labour and petrol charges, removal companies will charge you based on how much “stuff” they have to move. The removal companies will often provide a tool online so you can see how much your removal could potentially set you back.
Do you have removal insurance?
Did you think you’d need it as part of your overall home policy?
The truth is, You may already hit a home run on this one if you’ve chosen the right home insurance. If it is already included in your existing policy, it will cover removals with a professional removals company.
It is also crucial to check whether your chosen removals provider is insured and what amount of liability they accept for lost or damaged items.
Please don’t assume they’ll cover every item they transport. Doing this can be a costly mistake, so always triple-check!
Whether you are glad or sad to see the back of your old place, your mail, unless redirected, will still call it home for a while longer, so make sure you set up some mail redirection with Royal Mail.
You can easily redirect your mail to your new address, and this is done from anywhere between 12 weeks and a full year, with fees that start from £33.99.
It might be really tempting to cut this cost corner, but it could potentially see land you in some hot water, or you could fall victim to identity fraud if you do cut the cost out. You could also lose some vital documentation or personal mail.
Have you been renting your current home?
Is your current home in the same condition as when you first moved in?
Part of the legal tenancy agreement is likely to have a clause that states to leave the current residence clean and tidy.
Tenancy cleaning can, in fact, involve stumping up for a specialised tenancy cleaning service, as “clean” is a matter of differing opinion between you and your current landlord.
The current landlord may state that the residence needs to be as clean and decorated on departure as it was on arrival, and rectifying any of this can vary and can cost between £200 and £500, which is dependant on the size of the property and how dirty it is perceived to be.
If this is not completed and agreed upon by both parties, the landlord can claim for breach of tenancy and cleaning costs, which may end up costing a lot more than you think!
Additional Unforeseen Costs
With moving home, you may find you have some additional expenses on the actual days of moving.
Do you require childcare or someone to look after your pets?
Do you need to get food while you are moving around, or even pay toll charges?
Here’s an idea of actual costs:
- A registered childminder will cost approximately £118 for 25 hours of care per child.
- Pet-sitting is relatively inexpensive and can cost around £20 to £30 per day.
- Toll charges can be from as little as £2, but be mindful that this will increase the more trips you have to make through it!
It is best to sort out all of your bills and insurances when you move into your new place, and a change of address is an excellent time to shop around and get the best deals on:
- Home insurance
- Building insurance
- Contents insurance
- Utility bills.
- Council Tax
Your mortgage adviser/provider may insist that you obtain home building and contents insurance at the earliest possible time.
When it comes to your bills, you are not obliged to go with the same provider as the previous occupants, or indeed the provider you have had in your last residence.
Setting up direct debits will help you stay on top of your bills and track your budget.
Don’t forget to check who your new council tax is with (especially if you have moved a fair distance and the district or council tax area is different), what band your property comes under, and whether you’re eligible for a discount.
There are many financial ties and considerations with moving home, and you can manage this as long as you are aware of all of the associated costs, including ones that may pop up and surprise you!
Changing home means revising your budget. This can mean both temporarily and permanently if you are going to be living in different financial circumstances.
You may find that certain aspects of living in your new home or new location may be either cheaper or more expensive, including bills, food, and general living costs.
When moving home, It’s always best practice to keep a careful eye on your personal spending until you get your financial bearings. Only then will you be able to make some smart financial choices and enjoy life even more in your new abode.