Relocation costs

[rebl]

We've had a rather interesting twist in events that we never saw coming. Dh was made redundant a couple of weeks ago (out of the blue). He went to an interview on Friday that the head office is in York (2hrs away from here). The job was to be in Manchester. BUT during the interview DH told them that if this had happened November time we would have jumped at the chance to move to York. We have very supportive family there and its ultimatly where we would like to live. The kids are preschool, starting primary school in September so if we are going to move to York then this is the time to do it for them. We really want to be in York ultimately and this is a fantastic opportunity.

The company are desperate to get people to their York office but struggle to get people to want to move there. They asked him what financial relocation incentive did we need to move there rather than go to the Manchester office.

This is just exactly what we want ultimately but we never saw the opportunity happening. We moved house (locally) just before December. We bought a house that needs work doing to it and we have done some of it. We've rewired, located the source of the damp and fixed it (so not done the damp injection thing as recommended). We've put in off road parking. We've decorated all bedrooms and in the middle of doing the living room. We've spent around £3000 so far on the house. We've just applied for planning permission for making it a 4 double bedroom, 3 reception, utility, kitchen/diner house. The garden is a disaster and MAJOR work. The bathrooom isn't great but I don't think it will put people off.

If it wasn't for the fact we only moved 2 months ago we would be jumping at the chance but we just can't afford another house move. It cost in the region of £10k to move and we certainly would not be making that back on selling the house. We would need to sell this house and buy another. Because of the slowness of the market we will need to be in a rental for a certain amount of time whilst we sell.

The company want a figure from us. How do I go about this? I've got a list to try and get numbers for:
Visits to area to find rental
Conveyancing (selling and buying)
Stamp duty
Estate agents fee
Mortgage redemption penalty
Mortgage arrangment fee
Survey costs
Searches
Rental cost (we can't afford our mortgage and a monthly rent)

Have I missed anything? I'm pretty sure we won't make money on this house. I don't feel like we've improved it enough to get people to pay more for it than we did only 2 months ago so I have to make sure all costs are included, we just can't absorb financial costs on moving again.

The other thing is I'm self employed and would loose my business (its not built up enough to sell). I could start up again in a new area but obviously would have the initial outlay again (around £2000). Would it be cheaky to put that cost in there?

We moved 100 miles for DH's new job and as a kindness the new company paid £5k toward relocation costs but that was 5 1/2 years ago and to be fair that didn't quite cover our estate agency fees, removal costs and stamp duty.

They wanted proof of the amounts so it isn't like you can hike it up

It would honestly depend on the salary they are looking to pay your DH and how much relocation costs you are looking it. It boils down to how badly they want him.

We wanted to move, were willing and it was for a better salary and I could then be a SAHM so it meant more to us to have the job than the relocation costs.

Good luck.

Thank you Fizzylemonade. We won't be moving if they only pay £5k as it won't cover costs! They know that emotionally we are prepared to move, its only finances stopping us and that they're only stopping us purely because we only moved 2 months ago. If it had been when all hell was breaking loose on our purchase back in November we would have gone up to York and absorbed all the costs as we were moving anyway. Its the whole, only been in the house for 2 months that makes it so expensive to move.

Relocation allowance over something like £8k will be taxable so you might want to take this into account. What you can negotiate for relocation depends very much on the seniority of the position and how badly they want you. e.g MD of a Company Division may get entire housing costs covered for a year or two or three! For less senior positions, relocation is rarely above the tax free limit.(Not the BBC, I take it!) From personal experience, as long as the important details - basic package - salary, pension, share options, bonus % is acceptable, the rest of the perks like company car, Bupa, + relocation - you can quibble over in the details of the draft contracts. Believe me, unless you can negotiate directly with the CEO, you will get the 'standard' relocation package offered by HR (if indeed, there is one)

Don't forget HIP fees, removal costs, and possibly costs of things like redirection of post, phone reconnection fee etc.

My DH is also looking at relocation packages but his coy have a relocation scheme so its all documented. The amounts vary from £25000 to £100000 (!) depending on your position and there are tax rules on how much you can spend on certain items (otherwise you need to pay tax) so guess it does very much depend on what level of job is being offered (and how keen the coy are for your DH to move). I take it they don't have a relocation scheme? I'd be happy to send you a copy of my DHs coys scheme - can you send private mails on this site ? Sorry first time I've posted on mumsnet!

Ours paid for:

Buying our house off us at market price then selling it on. If they got less than they'd paid us they took the hit, if they got more we got the extra.

Visits to SE from North Yorks inc planes, hire car or taxi to hotels, all meals on househounting trips

new school uniforms

all purchase costs, obviouysly inc. Stamp Duty

Hire of rental place up to a max of about £3k per month

All plumbing in of dishwashers, w/machines etc, fitting of electric cooker etc

An allowance of about £5k for soft furnishings, carpets etc

Pickfords inc full packing service

Overnight hotel stays on the night of arrival before actually moving in

Basically we didn't have to spend a penny and actually got some nice new stuff for nothing.

We've relocated with the same company 3 times. Lst time was 10 years ago and inc the stamp duty which was about £25k, the whole thing was about £40k, but the best bit was them buying our old house from us so we were effectively cash buyers.

Sorry taken me so long to get back to this, been away. Its very useful to know that there is a tax issue with this all as well. 8K would cover the worst of it for us. But it would still cost us more than we have but we could maybe work that out another way.