Conveyancing Costs 2019
The quotes that you receive from potential conveyancing solicitors can vary a great deal and are dependent on a number of factors. It is important to know how to decipher the conveyancing fees that you are looking at. Our guide will help you work out how to do this and give you a rough idea of what conveyancing fees you might have to pay when buying and selling a property.
What Are Conveyancing Fees?
Conveyancing fees are the fees you pay to cover work carried out by your conveyancing solicitor. Conveyancing fees for buying and selling a property typically cost between £850 and £1500. As well as this you will pay disbursements which are payments your solicitor takes on behalf of a third party such as search fees. If you are getting a conveyancing quote for a leasehold property, this will cost more than for freehold properties. We have put together all the information you need to know about conveyancing fees and how much you can expect disbursements to cost. There are a number of fees associated with buying and selling properties and the conveyancing fees are just one of these.
What Are The Average Conveyancing Costs 2019?
Conveyancing fees vary but are typically between £850-£1500, plus the cost of disbursements. The average conveyancing fee when buying a freehold property is around £1,040. The average conveyancing fee for selling a home is around £1,000. This is based on the average UK home which is priced at £232,797 and includes 20% VAT. However, solicitors and conveyancers charge varying amounts for their fees so it is well worth shopping around to find the best deals.
Conveyancing fees aren’t the only cost to factor in. Disbursements that your conveyancing solicitor might charge you for include:
Further Fees Might Include:
- ID Fee- To comply with money laundering regulations and lender requirements, conveyancing solicitors music confirm the identity of each person buying and selling the property. Checks will be completed online through third party providers. This can cost £2 – £15 per person.
- Telegraphic Transfer – When you buy a property, the funds are transferred electronically so they arrive in the seller’s solicitors account on the completion date. The mortgage lender will also insist on the electronic transfer. Can cost between £15 – £45.
- Fraud Prevention Checks – which confirm the identity and bank account details of the seller’s solicitor. Can cost £7.50 – £12.
- Stamp Duty (SDLT) Form Fee – This is different to Stamp Duty Land Tax. The SDLT form fee is what the solicitor charges for completing the SDLT1 form. They submit this to HMRC on the buyers behalf. It must be completed on every purchase, even if no Stamp Duty is due. Can cost £20 – £50.
- Leasehold Supplement – Buying a leasehold property is more time consuming than buying a freehold property as more legal documents must be examined by the solicitor. Can cost £100 – £350.
- Acting For Lender Fees/Mortgage Fees – This is to cover the solicitors fees who act on behalf of the mortgage provider, whether sale or purchase. Some lenders will only allow certain firms to act for them on a purchase. Can cost £30 – £70.
- Bankruptcy Search Fees – The Bankruptcy Search (K16) is a pre-completion search on behalf of lenders. Can cost £2.
- Land Registry Fees – The Land Registry Fee is a charge payable to HM Land Registry to register the change of ownership of the property into the new owners names. A sliding scale of fees applies depending on the property value. Searches include the Title Register and Title Plan. The Title Plan sets out the boundaries of the property, land included in the title, and shared maintenance responsibilities. The Title Register and Title Plan each cost £3. You can order this from the Land Registry.
- Searches (Search Packs, Local Authority Searches And Others) – Searches are the enquiries made during the purchase of a property. Searches are made for any issues that may affect the value of the property. Your conveyancing solicitor will organise these with the local authority depending where you are. They include drainage and water, and environmental searches and should be included in the conveyancing quote. Fees vary from £189 to £375.
- HM Land Registry Registration (Disbursement) – The Land Registry registers ownership of property and land in England and Wales and is a government department. Fees are charged a property changes hands. These depend on the purchase price of the property.
Mortgage Fee – If the property you are selling has a mortgage on it, a fee for handling this is charged. It covers the releasing of the lender’s charge over the property. THis can cost £20 to £125.
- Office Copies – Solicitors must obtain the formal title documents from the land registry called “Official Copy of Register of Title” or ‘official entries’ or ‘office copies’. These prove that the seller is the owner of the property and show whether another party has an interest in it. It will show any rights, restrictions or covenants on the property and cost £3 if ordered online, or £7 by post. Additional and non-standard documents can cost over £100.
Why Are Conveyancing Fees For Leasehold Properties More?
When you compare conveyancing solicitor quotes, you might notice that those for leasehold properties are quite a bit much higher than freehold. This is because there is more work involved in the transaction which means additional costs. You might have to pay for a ‘Deed of Covenant’, a legally binding agreement between the buyer and landlord/management company which covers things like carrying out repair work.
Your conveyancer will also have to make investigations into the length of lease you are taking over, as well as discussing with the landlord whether to serve notices on them or the managing agent. They might have to ask for further information about the service charge or management details, for example. Costs can range from £100 to £1,000.
There will occasionally be other fees due, usually for extra certificates / building regulation checks / insurance policies etc.
“Cheap” Conveyancing Fees
When comparing conveyancing quotes to choose a conveyancer, it is important to look beyond the cheapest quote. Sometimes conveyancing solicitors offer a cheap online conveyancing quote (initially) to attract customers. These prices are often quite literally, too good to be true.
Whenever you compare conveyancing quotes, double check whether they have only quoted the base legal fee, omitting the disbursements. Make sure VAT is added to your quote as this is a legal requirement.