When comparing conveyancing services, it's essential to review the fees upfront. To choose a solicitor, start with the service level that the law firm promises. You can get an idea of this level by reading their reviews and visiting their website. Then, contact the firms on your shortlist.
You can make your decision after you see how they handle your inquiry or when you learn how much information they supply, how they update you, and how they deal with any problems.
What Are the Average Conveyancing Fees?
The average conveyancing fee is determined by the time it takes to transfer the property. The longer it takes, the more it costs. The average conveyancing fee is £1,162, but this amount can vary depending on the state of the property and the type of transaction.
A refinancing buyer will pay more than the average conveyancing fee because the process tends to be longer. The conveyancing process is also more complicated when more than one person purchases the property, such as a couple.
You may pay more for a firm that offers a discount to people who have been referred to them by a friend or family member or who are joining the conveyancing service to another one. You may also save some money if you take care of documents and get them to your conveyancing service early.
Fees vs Disbursements
Conveyancing fees and disbursements are different. Conveyancing fees are an all-inclusive price that you pay to your solicitor. A disbursements fee is an expense that your solicitor is allowed to recover.
For example, the disbursements fee might cover the costs of a surveyor, courier, or electronic signature. You will not be charged a fee or disbursements fee, but they may be charged to the other party, and you may be responsible for paying them.
Most mortgage lenders will cover the disbursements fees. They consider the disbursements fees a benefit to the lender and increase their loan.
Conveyancing Fees and Disbursements for Buying a Property
Below is what comprises the conveyancing fees when buying a property and an estimate of how much they cost:
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Purchase Legal Fee
The purchase legal fee is the sum paid to the solicitor for housing-related legal work itself. Some solicitors charge on top of the standard transaction cost as part of their service. Legal fees range from around £400 to £1,500.
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ID Fee
The ID fee is the sum paid to the solicitor for the identity check completed by the conveyancing department. This fee is optional and charged on top of the legal fee. It is usually around £100.
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Fraud prevention checks (lawyer verification)
The money laundering laws have been strengthened as part of the UK government's counter-money laundering policy. Starting in 2007, all transactions of more than £24,000 will require a lawyer to verify the buyer's identity. The average cost of the check is £180. However, if you choose a solicitor that charges £500 for the ID fee, the lawyer verification will cost £500.
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Stamp Duty (SDLT) form fee
The Stamp Duty Land Tax (SDLT) is a tax that must be paid when you buy a property over a specific price. The amount you have to pay depends on the property's value in pounds.
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Telegraphic Transfer or 'TT' fee
This is the fee charged by the UK's Land Registry when you make the electronic transfer of ownership of the property. This fee is £25 and is paid to the Land Registry.
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Leasehold Supplement fee
When you buy a leasehold property, you will have to pay a fee to the leaseholder for the lease extension. This fee can range from £125 to £800.
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Bankruptcy Search Fees
When you apply for a mortgage, you will be required to provide the bank with your credit history. To comply with the regulations, you must have a credit check. Some solicitors will not charge additional fees for this. However, you can expect to pay around £20 to £50.
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Acting for lender fees/Mortgage fees
The lender fees are the fees paid to the solicitor for acting for a lender. These fees are optional and charged on top of the legal fee. They range from around £100 to £400.
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Land Registry Searches
The Land Registry offers a range of searches. The Land Registry searches normally only require paying for your order documents. Still, some solicitors may include in their conveyancing fees an offer to pay for Land Registry searches up to £350.
Conveyancing Fees and Disbursements for Selling a Property
Below is what comprises the conveyancing fees when buying a property and an estimate of how much they cost:
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Sale Legal Fee
The sale legal fee is paid to the solicitor to carry out legal work on the property sale. Some solicitors charge on top of the standard transaction cost as part of their service. Legal fees range from around £300 to £1,500.
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Mortgage discharge fees
You will have to pay your lender to release you from the loan you took out to buy the property when you sell a property. In many cases, the lender will charge a fee of £150 to £300.
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ID Fee
A surveyor will charge a fee to check the property buyer's identity and check for any registered charges allegedly due to the property. This fee can range from £100 to £200.
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Leasehold Supplement
When you sell a leasehold property, you will have to pay the leaseholder to extend the lease by the balance of its term. This fee can range from £125 to £800.
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Office Copies and Related Documents
When you sell a property, you will have to pay for copies of your deeds and other documents. This will depend on the solicitor you choose, but the average is between £250 and £500.
Conclusion
Conveyancing fees vary depending on the value of the property and the type of transaction. You will not have to pay the fee and disbursements in most cases. However, you will have to pay the fees when buying or selling a property, and some of these fees are mandatory.
The average conveyancing fee is £1,162. However, that may change depending on the solicitor's fee and the type of transaction. You can get an estimate of how much conveyancing fees cost by contacting the solicitors on your shortlist. They will provide you with all the information you need to know, but only by contacting them directly will you compare the prices based on your specific needs.
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