Conveyancing solicitors fees

Conveyancing fees and conveyancing costs are for the legal work that needs to be done when you buy a home as the property’s ownership needs to be transferred between buyer and seller.

Conveyancing fees can be separated into two categories:

• Legal fees are what you pay the solicitor for doing the legal work

• Disbursements cover the payments your conveyancer has to make to any third parties for services like searches

Definition of conveyancing fees

Conveyancing fees refer to the costs associated with the legal process of transferring ownership of a property from one party to another. These fees are typically paid to a solicitor or licensed conveyancer who handles the conveyancing process on behalf of the buyer or seller. The conveyancing process involves various legal tasks, including property searches, contract preparation, and liaising with the Land Registry. Conveyancing fees can vary depending on the complexity of the transaction, the location of the property, and the type of property being transferred.

Importance of understanding conveyancing fees

Understanding conveyancing fees is crucial for anyone buying or selling a property. These fees can add up quickly, and it’s essential to factor them into your overall budget. By understanding what conveyancing fees cover and how they are calculated, you can make informed decisions about your property transaction and avoid any unexpected costs. Being aware of these fees helps you plan better and ensures that you are not caught off guard by additional expenses during the conveyancing process.

Factors affecting conveyancing fees

Several factors can affect the amount of conveyancing fees you pay. These include:

• The location of the property: Conveyancing fees can vary depending on the location of the property, with properties in urban areas typically costing more than those in rural areas.

• The type of property: The type of property being transferred can also affect conveyancing fees. For example, leasehold properties may require additional paperwork and therefore incur higher fees.

• The complexity of the transaction: If the transaction is complex, such as a shared ownership or Help to Buy scheme, conveyancing fees may be higher.

• The solicitor or conveyancer: Different solicitors and conveyancers may charge different fees for their services. It’s important to compare quotes and understand what is included in each to ensure you are getting the best value for your money.

Breakdown of solicitor fees

Solicitor fees can be broken down into several components, including:

• Legal fees: These cover the solicitor’s time and expertise in handling the conveyancing process. This is the primary fee you pay for the professional service provided.

• Disbursements: These are third-party costs, such as property searches and Land Registry fees, that are incurred during the conveyancing process. Disbursements are essential for completing the legal requirements of the property transfer.

• VAT: Value-added tax is typically added to the solicitor’s fees. It’s important to check whether the quoted fees include VAT to avoid any surprises.

What are the disbursements?

There are many different disbursements. Some of the main ones are:

• Bankruptcy search - so the lender can confirm that you have not been declared bankrupt

• Local Authority searches - checks for any restrictions or planning permissions that may affect your property

• Land Registration fees

• Drainage search - checks that the property has the right drainage access

• Transfer of ownership fees - for the cost of sending money to the seller’s conveyancing solicitor

• Stamp Duty Land Tax

• Title deeds copies

• Anti money laundering checks - essential legal procedures to verify identity, typically ranging from £6 to £20

• Telegraphic transfer fee - a bank charge for electronic transfers of funds, typically ranging from £20 to £75

There are lots of costs involved in the overall conveyancing process.

Here’s a rundown of conveyancing fees:

• Conveyancer’s basic fee - varies between solicitors. Can be between £300 to £1500

• Bankruptcy search - £4

• Title deeds copy - £6

• Local authority searches - £250 - £450

• Property fraud check - £10

• Transfer of ownership - £200 - £300

• Stamp Duty Land Tax - 0 - 12%

• Land registration fee - £20 - £1105 (fixed cost depending on the cost of the property)

• Valuation fee - a charge imposed by lenders to assess a property's worth, often varying in cost depending on the property's value

• Booking fee - a charge paid to lenders when applying for a mortgage, ranging from £99 to £300

Are conveyancing fees part of a solicitor quote?

A solicitor’s quote should cover the basic conveyancing fee, solicitor conveyancing fees (that cover the legal work), as well as all or most of the disbursement costs that may come up during conveyancing.

Be wary of receiving a quote that does not list all the disbursements clearly.

Some solicitors may charge you more for tasks that ought to be covered in their basic conveyancing fee.

They might do this by referring to the tasks and charges as ‘potential additional disbursements’ or by adding them in the small print and then charging extra. This may initially make their basic conveyancing fee look lower, but will add up when you see the final bill including those ‘extras’.

Always make sure you read through the small print in search of any additional charges before you agree on a quote.

Is there a fixed solicitors fee for buying a house?

This depends on the solicitors you use. Some may charge a fixed fee or require you to pay solicitor fees upfront for conveyancing searches, while others charge on a per-hour basis.

Additional fees to expect

In addition to conveyancing fees, there are several other costs to expect when buying a property. These include:

Stamp Duty

Stamp Duty, also known as Stamp Duty Land Tax (SDLT), is a tax paid on the purchase of a property in England and Northern Ireland. The amount of Stamp Duty payable depends on the purchase price of the property and the buyer’s status. For example, first-time buyers may be eligible for a reduced rate of Stamp Duty. It’s important to calculate how much Stamp Duty you’ll need to pay and factor this into your overall budget when buying a house.

Some solicitors might ask for a small upfront payment before they start working, while others will not charge you until the buying process has been completed.

Make sure to confirm how your solicitor will want to be paid. Additionally, you will need to pay stamp duty through your solicitor as part of the property purchase process.

You can do your own conveyancing, but it will not be easy.

There are lots of steps in the process besides paperwork. There are searches and other formal enquiries that need to take place. If not done properly, or at all, it can stall the process and cause issues later down the road.

Additionally, lenders will often require that the process is carried out by a legal professional.