If you have read any of our blogs in the past, you might have noticed how often we reference how drawn-out, complex, and expensive property transactions can be. From mortgage fees to advertising costs, and from stamp duty to insurance, there seems to be a cost attached to everything! Perhaps one of the most significant expenditures is conveyancing. Conveyancing typically costs anything from £500 to £1,500, excluding disbursements. The disbursements can bring the total bill to a staggering £2,500! However, much depends on whether you are buying or selling, whether the property is leasehold, and how much it costs.
In this blog, we’ll dive a little deeper so you can understand the costs of conveyancing, whether you are buying, selling, or doing both.
What is conveyancing?
Conveyancing is the legal aspect of a property transaction. It’s where your specialist conveyancer organises the transfer of ownership from one owner to another. They will prepare contracts, transfer cash, review mortgage offers, and organise the searches. Basically, without them, your sale or purchase will grind to a halt!
What are conveyancing costs?
Conveyancing costs are split into two parts: the conveyancer’s cost and the disbursements.
The conveyancer’s costs cover the legal work they conduct; the disbursements are the charges accrued for work done by third parties.
All money will be paid directly to the conveyancer, who will then distribute payments for disbursements to the appropriate third parties where necessary.
How much will the conveyancer charge for their work?
The fee charged by the conveyancer for their work (excluding disbursements) will vary. You can often find conveyancers who charge a set fee, but it’s worth checking the small print to see exactly what is included. Typically, though, the fee set by the conveyancer for their work will be based on:
- The value of the property
- The location of the conveyancer
- Whether the home is leasehold or freehold
- If they are an online conveyancer
- Whether your property is part of a complex transaction (e.g., buying shared ownership)
- Whether you are using a solicitor or conveyancer
- If the property is a new build
In most cases, the more expensive the property, the higher the conveyancer’s fee. However, you can reduce these costs a little. Opting for an online conveyancer can often save a few pounds, and choosing a conveyancer over a solicitor can also lower the total costs. If the home is a leasehold property, though, you might see an extra £300 on top, potentially wiping out any savings you may have made.
Expect to pay £500 to £1,500 for the conveyancer’s time and work.
How much will the disbursements cost?
The disbursement aspect of your conveyancing fees can vary quite a lot. Some disbursements only cost a little, whereas others could set you back more than you may have expected. We’ve listed the most common disbursements below:
ID Check
To ensure money is not being laundered, a conveyancer must verify your identity. They will use a third-party ID service to validate this. Due to the varying services available, costs could range from just under £10 to just over £20.
Bank transfer fees
Due to the sums of money being transferred and the need for them to arrive on a specific day, a telegraphic transfer service is used. Organised by the conveyancer and the bank, it will typically cost between £20 and £50. If the amount of cash involved is less than £60,000, this service will not be required.
Copy of title deeds
When you sell a property, you need to prove it is yours. To do this, your conveyancer will obtain a copy of the title deeds from the Land Registry. This should cost approximately £10.
If your property is leasehold, expect these costs to be higher.
Transfer of ownership
This can be an expensive one. If you are selling, you’ll need to ensure the ownership of the home is transferred from you to the buyer. The conveyancer will organise this with the Land Registry. Expect to see it cost around £300.
Searches
If you are buying, your conveyancer will organise a range of searches. These can vary depending on the type of property, its location, and whether there are any historical issues relating to mining. In some cases, there may even be contributions expected for the upkeep of a parish church. In most cases, searches will include:
- Local Authority search
- Drainage and water search
- Environmental search
These three searches alone could cost up to £300.
Additional searches, such as those looking into mining or supporting the parish church, vary in cost, and if both are needed, you might find an additional £200 added to your total conveyancing costs. The good news is that if both are required and are at the cheaper end of the scale, both searches can cost as little as £40 in total.
Managing agent’s pack
If the property you are selling is leasehold, the buyer will require all relevant information about the leasehold. The managing agent’s pack will be obtained by the conveyancer. With costs varying depending on the property value, type, and location, you could see as much as £800 added to the bill for this.
Supplement for unregistered property
Most properties are registered with the Land Registry, but occasionally, some are not. If this is the case with your property, the conveyancer will have to spend extra time working to gather evidence to prove your ownership of the home. This could cost £100 to £200.
Leasehold supplement
Leasehold properties are more complex and require more work from the conveyancer. This could cost an additional £200.
Lifetime/Help to Buy ISA
If you are buying a home with funds from a Help to Buy or Lifetime ISA, the conveyancer will need to redeem the applicable bonus. This will cost around £60.
Gifted deposits
We all know buying a home can be expensive, so it’s not uncommon for deposits to be gifted by family members. If this applies to you, the conveyancer will need to verify that the cash has come from a legitimate source. This will add £100 to your conveyancing total.
Stamp Duty and Stamp Duty tax return
Stamp duty will vary depending on the property value and whether the purchased property is a main or secondary residence. The completion of the tax return for stamp duty will be done by the conveyancer and could add £20 to £50 to your total.
The disbursements above are the most common, but there can often be more. It is wise to speak with your conveyancer/solicitor in advance to get some clarity.
Will fixed-fee conveyancing keep conveyancing costs down?
Sort of. The fixed fee only relates to the conveyancer’s work and not the disbursements. While you might see an appealing “£300 fixed-fee conveyancing” advertised, your full quote will include the disbursements, which will push the bill above this amount. You should also factor in whether additional disbursements are likely to be added, such as extra searches.
You might also see “no sale, no fee conveyancing”. This can sound tempting but should be treated with caution. Some fees may still be due even if the sale falls through. This is worth investigating before settling on a conveyancer offering this service.
When do I pay conveyancing fees?
In most cases, you pay a fee upfront to your solicitor/conveyancer. These are normally in the £300 to £500 range and will cover a host of the disbursements where the conveyancer has to reach out to a third party.
If you are buying, your conveyancer will then request further funds for the relevant searches. The remaining balance for the purchase and conveyancing fees is then paid the day before completion.
If you are selling, you’ll pay a specific amount to the conveyancer in advance to help cover costs. The remaining balance will then be paid when the sale is completed. To make things easier, the conveyancer will normally deduct their costs from the remaining balance rather than send you all the money and then chase up what they are owed.
Conveyancing costs can be expensive whether you are a buyer or seller so it is wise to research all your options before committing to anything. We provide conveyancing in Epsom that comes with protected fixed pricing. You won’t find a charge added for simply giving us a call or receiving a letter, something many companies charge you for! Instead, we remain fully transparent, allowing those looking for houses for sale in Epsom to enjoy a much smoother buying process. Why not give our team a call today to see how we can help you find your home and keep your costs down?