Conveyancing is an important part of a property transaction process. Whether you’re buying or selling a house, hire a conveyancer to ensure a legal and efficient property sale. This licensed professional will handle the legal transfer of ownership and other tasks to complete the transaction.
This conveyancing process comes with a price.
In this article, you’ll learn more about the typical conveyancing fees and the factors affecting those fees. This knowledge will allow you to choose the right conveyancer you’ll trust to help with the property transaction process.
Conveyancing fees cover the expenses needed to complete a property ownership transfer. It pays for the legal or administrative work that leads to a successful and legally binding transaction.
There are two ways to categorise these fees.
The first is the legal fees paid to a licensed conveyancer or solicitor. They take care of the property ownership transfer.
The second is the disbursements that include third-party fees and other costs incurred to complete the transfer. These include stamp duty, local searches, Land Registry fees, etc.
In a survey done on 100 firms reveals the average conveyancing fees in England and Wales. For freehold properties, the average is £1,187.98 to £1,265.65 while leasehold properties have an average of £1,401.99 to £1,491.83. These figures are inclusive of VAT and applicable for both buyers and sellers.
The actual price will vary depending on the licensed conveyance firm and the complexity of the property involved. While both buyers and sellers pay conveyancing fees, the former usually pays more.
To help you get the right value for your conveyancing requirements, here’s a breakdown of the fees you should expect to pay.
This is the fee you pay the solicitor or licensed conveyancer. The cost of their service will depend on 3 things: the mortgage, property price and property type (freehold or leasehold). The average is between £400 to £1,000 (+VAT).
This fee covers necessary searches to ensure the property is clear of issues. This is a must before buying a house. It involves local, environmental and drainage searches. The cost would depend on the location of the property and will usually go between £250 to £400 (+VAT).
This provides you with a detailed report on the condition of a building – which is ideal for homebuyers. It’ll determine if the property is worth the asking price. This typically costs £250 (based on the basic Home Condition Report from the Royal Institute of Chartered Surveyors).
This is the transfer fee for the change of official property ownership. It registers the asset under the buyer’s name. This will cost between £20 to £540 – depending on the value of the property.
The conveyancer facilitates the land registry application – usually through an online portal. If the application is complex and cannot be applied online, the registry fee will be higher.
The payment of Stamp Duty Land Tax (SDLT) or Land Transaction Tax (LTT in Wales) covers the government tax imposed on property transactions. It’s a lump sum amount paid by the buyer upon the completion of the transaction and applies to certain price brackets.
For properties valued at £250,000 or below, there’s no need to pay SDLT. If it’s a first home purchase, there’s no SLDT for up to £450,000. Make sure you check out the latest rates from the government website.
Getting an official copy of the title deed from the Land Registry will cost from £6 to £25. The fee depends on the property type involved (e.g. freehold or leasehold). Both the buyer and seller should get a copy of this.
This covers the cost of transferring payments, specifically those involving large sums like payments to the mortgage lender, etc. This can cost between £30 to £45.
Several factors affect the cost of conveyancing service.
The first is the property type. Leasehold properties are generally more expensive because they require more legal work.
The second is the location of the property. The local search costs and taxes will vary from one location to another. View the local government websites to get more details about the rates you need to consider.
The third is the complexity of the property transaction. The more complex it is, the more work is needed to complete the transfer of ownership. This would mean higher legal fees.
In all these payments, it’s important to always factor in the VAT. This could add up so include it in your calculations.
Also, ask the conveyancing firm you’re considering if they have fixed or hourly rates. Fixed fee conveyancing usually avoids unexpected costs – but it’s still prudent to know the details to determine if the amount is reasonable.
Always be wary of hidden costs. Use a conveyancing fees calculator and compare different quotes so you can choose the best price and service that’ll meet your requirements. Ask your estate agent for referrals as they usually have a network of property experts who can help.
Conveyancing is essential in completing the buying and selling process so include it in your budget upfront. While getting the lowest price is ideal, make sure you’re getting the right service out of it.
Speed is of the essence in property transactions. This is why Muve has gone through innovative measures to ensure swift and efficient conveyancing processes – for both buyers and sellers.
Contact us to complete the property exchange in no time. Get a free quote and learn more about how Muve can help you achieve a hassle-free conveyancing process.
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