No one can deny that it can be exciting to sell or buy a property. However, it can also get overwhelming fast. That’s why we try to get the best conveyancing solicitors we can find.
There are a lot of factors that have to be considered when buying or selling a property, including marketing trends and all the complex legal concerns that come with the process. One of the most crucial factors that are often overlooked is the conveyancing fees. These are fees that are necessary for both sellers and buyers if they want their transaction to be successful and legally binding.
You may already be familiar with conveyancing fees, but do you know how much they cost in the United Kingdom in 2023?
Here, we’ll share some answers:
What Conveyancing Fees Are
In the UK, conveyancing fees can vary, depending on the property’s value as well as the kind of transaction. That said, solicitors typically charge some fixed fees for the conveyancing process:
Fixed Fee Type (GBP)
Search Fees (25–60)
Land Registry Fees (10–20)
Variable Fee Type (GBP)
Bank Transfer Fee (40–150)
Legal Fee (500–1500+)
As you can see, various fees can be added to make up the total conveyancing fee. Also, the final cost can include additional work that has to be done, like handling leasehold properties or sorting out disputes about boundaries and the like.
Other Factors That Come Into Play When Calculating Conveyancing Fees
Other factors need consideration as they can affect the total cost of your conveyancing fees. The first one would be the property’s value. Next is whether you are selling or buying. And third is the property’s location.
Let us say you are selling a property that is worth £200,000 or less. Here, you are probably going to shell out about £850 in conveyancing fees. On the other hand, if the property costs between £200,000 and £500,000, you will likely pay £950 to £1,250. If the house costs over £500,000, expect to pay more than £1,500 for the conveyancing fees.
Now, why does it matter if you’re selling or purchasing a property when it comes to conveyancing fees? It’s because selling a property typically costs more than buying because many additional expenses are involved in selling a property, like commissions for the estate agent and marketing expenses, among others.
Where the property is located can also impact how much you will have to pay in conveyancing fees. For instance, if the property is in London or in another major city, you will likely have to pay higher than if your property is in a village or a small town. This is due to the fact that solicitors’ fees also tend to be much higher in the cities.
Breakdown of Legal Fees and Other Costs
The total of the legal fees and related disbursements for conveyancing can be broken down into several categories, some of which we’ll outline below:
These refer to the basic legal fees that are charged by solicitors for the work that they do in relation to your estate property transaction. Some of the tasks included are researching the title of the property, the preparation and filing of relevant documents, liaising with the solicitors of the other party, and more.
These are the expenses that are incurred by the solicitor on your behalf while processing your transaction. These can include such fees as Land Registry fees, search fees, and stamp duty.
Value Added Tax (VAT)
All the legal fees that are charged by solicitors in the UK are subject to value-added tax at the rate of 20%.
There may also be other costs that are associated with your specific transaction. This could include leasehold management company charges or indemnity insurance premiums. Your solicitor will advise you should there be such expenses at the onset of your transaction.
Circumstances Where Fees Associated With Conveyancing May Vary
There are certain situations where conveyancing fees could vary, including:
If the property is found in Scotland or Wales. Their laws and processes might be different from that of England and Northern Ireland.
If the property is considered leasehold instead of freehold because there may be added paperwork and fees involved in leasehold
If the sale is being processed through an auction, which means there may also be extra costs associated with it
If the property you are buying is a new build as there could be different fees that the developer charges
Legal Fees You Should Be Aware Of When You Remortgage Your Property
When you remortgage your property, the legal fees that are associated can vary, depending on the property’s value and how much work is required of your lawyer. Usually, conveyancing fees for a home remortgage range between £500 and £1,500. That said, if your property is considered of very high value or if your lawyer has a lot to do on your behalf, the conveyancing can go beyond that range.
What Disbursements Are
When you purchase a property in the UK, you will have to pay conveyancing fees that will include disbursements. But what exactly are disbursements? These are third-party costs that the conveyancer you hire will have to pay on your behalf and could include fees like search fees, Land Registry fees, and stamp duty, among others.
The cost of disbursements that you’ll have to pay also depends on the price of the property you are purchasing. Let’s say you are buying a property that is worth £200,000. Your stamp duty will cost £1,500. Your conveyancer will also have to pay Land Registry fees amounting to £135. The search fees will cost you £250. The total you’d have to pay for disbursements will be £2,885.
Also, the conveyancer will add the fee they charge for handling the disbursements to the final bill, so you won’t have to worry about any upfront costs.
What Will Happen If the Sale Falls Through?
If you are buying a property, you wouldn’t want to hear that the sale of the house has fallen through. But that does sometimes happen, especially in competitive markets. What happens if that does happen?
If you already have a mortgage agreed upon in principle, the lender can offer you guidance on what your next steps should be. If you don’t have one, though, you’ll have to speak to a solicitor regarding your options.
In many cases where the sale has fallen through, the buyer is entitled to a refund of the deposit and all other fees they have paid. However, in certain situations, you may not be entitled to a refund. This may be the case if your offer was significantly lower than the asking price or if issues had arisen with the property that was not disclosed right from the beginning.
Because of this, you are advised to take caution when making an offer on a property. Discuss these risks with your solicitor before you make an offer so that you can make an informed decision.
Considering how complex the process of buying and selling a property is, the services of conveyancers are really necessary. Before you hire one, it’s important that you know how much the average conveyancing fees are in the UK and what those fees are for. This way, there won’t be any surprises.
Conveyancing Calculator is a useful tool that you can use to find the best conveyancing solicitors and how much their fees are. Let us help you find the right conveyancing professionals today!