What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

The True Cost Of Moving Home: Looking Beyond The Purchase Price

When planning a move, most people focus on the purchase price, deposit and mortgage repayments. However, moving home involves a range of other costs, many of which arise long before completion.

These can include legal fees, property searches, surveys, mortgage costs, Land Registry documents, management information packs and removal expenses. Some of these costs may be payable even if the transaction does not proceed.

This is an important consideration because property transactions do not always complete. The Government’s Home Buying and Selling Reform Roadmap reports that around one in three transactions fall through, costing consumers approximately £400 million each year.

Understanding abortive costs

“Abortive costs” are expenses incurred on a transaction that does not ultimately complete.

For example, surveyors may already have inspected a property, searches may have been obtained and conveyancers may have carried out significant legal work. These services often involve professional time and third-party payments which cannot necessarily be recovered if the transaction comes to an end.

Why transactions fail

A sale or purchase can fall through for many reasons, including:

Survey findings or structural concerns.
Mortgage difficulties or down-valuations.
Delays in obtaining information.
Problems elsewhere in a property chain.
Changes in personal or financial circumstances.
Renegotiation of the agreed price.

By the time these issues arise, costs may already have been incurred by one or both parties.

Buyers and sellers alike can be affected

Buyers often expect to pay for surveys, searches and mortgage-related costs. Sellers can also incur significant expenditure, particularly where leasehold properties, management companies or estate managers are involved. Information packs and supporting documentation frequently attract charges which are payable whether or not the transaction completes.

Planning a realistic budget

When budgeting for a move, it is sensible to think about three categories of expenditure:

Costs payable on completion, such as SDLT, removal costs and final professional fees.
Early transaction expenses, including searches, surveys and legal work.
A contingency fund for unexpected costs or delays.

Having some financial flexibility can help reduce pressure if additional reports, enquiries or unforeseen issues arise during the transaction

Questions worth asking

Before instructing professional advisers, consider asking:

What costs are payable if the transaction does not complete?
Which payments to third parties are non-refundable?
Are there additional fees if another property is found?
What is included within the quoted fee?

Understanding the answers at the outset can help avoid surprises later.

The practical message

The cost of moving home is about more than the purchase price and deposit. A realistic budget should also take account of legal work, surveys, searches, lender charges and the possibility that a transaction may not proceed.

Careful planning and a clear understanding of potential costs can help buyers and sellers make informed decisions throughout the moving process.

This article provides general information only and does not constitute legal or financial advice. If you would like to discuss the legal aspects of buying or selling a property, please contact the Wollens Residential Conveyancing Team.