There have been lots of changes to the market in the last few years with the pandemic and Brexit, so if you’re looking to sell your house in London, now could be a good time.
It’s estimated that 1.5 million homes were sold in 2021, making it the busiest year for the housing market since 2007.
And there’s not much sign of that slowing down, but it is worth knowing that there are hidden costs and fees to be paid when selling a house and those can be more expensive for those living in the capital.
According to Zoopla, The average price properties in London have sold for in the last 12 months is £700,325.
Here’s a breakdown of the typical costs you can expect to incur based on selling your house in London for the average price of £700,325.
|Estate agent fees
|£7,000 – £21,009
|Energy Performance Certificate costs
|£8,235 – £23,000+
This doesn’t include preparing for house viewings, early mortgage repayment fees and capital gains tax.
Estate agent fees
Selling a house can be a simple and easy process or it can be quite difficult, that can depend on your estate agent.
Estate agents will help with a lot of the work that comes with selling a London property including;
- Take the photos of your home
- List the property
- Talk to prospective buyers and answer any questions
- Arrange viewings
- Sorting paperwork
For this an estate agent will take a commission of the property value – typically this is between 1 and 3% if you use a sole estate agent. If you use more than one estate agent you may incur the higher end of those fees from both estate agents.
Estate Agent Fee Calculator
There’s a lot of legal stuff to sort out when selling your house, so you’ll need a solicitor/conveyancer to help navigate that.
As with most services, the quality you can get can vary widely and so do the costs. The same with solicitor and conveyancing fees. Some work on a fixed fee basis, others charge a percentage of the house value.
Fees are typically less when selling a house than buying a house but the exact costs depend on whether you have a mortgage and whether the home is freehold or leasehold. (In short, freehold means you own the property and the land and leasehold is when you own the property but not the land.)
An Energy Performance Certificate (EPC) gives an overview of the property’s energy efficiency – what energy costs at the property and recommendations on how to reduce them.
It’s compulsory to order an EPC when putting a house on the market and it has to come from an accredited assessor. You can arrange this yourself or an estate agent can arrange this for you. These typically cost around £35-120.
It’s great if you have friends with vans who can help you move the contents of your house yourself but it’s not always possible. More importantly it can be a tiresome and stressful chore, depending on how much you’ve accumulated whilst living in your home. Moving yourself also means you’ve got to deal with furniture, taking it apart, loading it up and reassembling it at the other end.
- 17 small boxes
- 15 medium boxes
- 7 large boxes
- 4 extra-large boxes
A removal company will come and assess what you have, bring you the boxes, packaging paper, bubble wrap and tape and leave you to pack. They then collect all your boxes and your furniture, load it up, move it to the next place, and put it back in the rooms. Which means, you only have to pack up your belongings and unpack them in your new home.
They can make the whole moving process less stressful and for those who can afford to do it, it’s totally worth it but be sure to look around for quotes – prices can vary.
Preparing for house viewings
Your London house might be ready to be sold as it is, but you might also want to freshen it up (say with a fresh coat of paint) before putting it up for viewings. Or, it may be a major change is needed, for instance, a new kitchen, and that could come with a higher price tag. These costs should be taken into account when working out what it would cost to sell your house.
If you’re looking for a quick sale, having a house that’s ready to move into and that looks presentable can help you achieve that.
Early repayment fees
If you’re planning on paying off your mortgage early when selling your home, it could be worth checking with your lender how much your early repayment charge might be. A lot of the time, the fee is higher than expected, and something you’ve not budgeted for. There may also be an admin fee for your lender to close down your account.
Early repayment fees can be anything from 1-5% which on a mortgage of £700,000 could work out to a sizable amount.
You can find out any fees you will incur by paying your mortgage off early by calling your lender directly.
Capital gains tax (CGT)
Capital gains tax is tax you pay on the sale of a non-inventory asset (property, stocks, bonds, etc.)
You do not have to pay CGT on the main home you are living in so, if you’re selling your home to move to another, you will not pay CGT.
However, if you have a house for the purpose of letting, a second home or a property used for business, you will need to pay CGT because it’s classed as an income. You will only need to pay tax on the profit of the sale.
Estate agent fees and stamp duty can be deducted and there’s a free threshold of £12,300 per person, which can be combined if the house is owned by two people.
So, how much does it cost to sell a house in London?
There are a lot more things and costs to consider when selling than just calling an estate agent and they can add up to more than you anticipated.
But if you are considering selling you may want to look into some of these costs to confirm your decision to sell. And if you are still in the market to sell your home but all the costs have put you off, you can always get in contact with us to get a cash offer today. We’ll give you a free valuation and take homes of all conditions, quick.
About Richard Mews
Richard has 31+ years of property experience, has been Chairman of several regeneration committees and has helped more than 600 homeowners and landlords get easy, stress-free personal solutions for selling their property. Richard’s goal is to give you unbiased help to receive a quick house sale, even if that means not working with him.