Conveyancing Costs & Fees

Conveyancing Costs & Fees

There are two basic aspects to costs and fees in a conveyancing transaction.  One is the firm’s charges for dealing with the legal and administration work in connection with a transaction.  The other is those sums the firm has to pay out on your behalf to third parties.  These are called disbursements.

The fees involved in any transaction are important and we review these on a regular basis.  We try to work on a fixed fee basis, ensuring that you know what the fees will be for your transaction from the outset, however, this is not always accurate, as we have seen no Contract documentation at that point, and we are estimating our costs on the basis of dealing with a straight-forward transaction.  If during the transaction, there is an aspect of the matter that was not discussed at the outset, when the estimate of costs was given, and which is likely to be any additional cost, we will make sure you are informed of this at the earliest opportunity and a clear estimate of those extra costs will be provided.

Conveyancing matters are dealt with by fully qualified and experienced fee earners.  Mr Paul Harfitt is a Solicitor with more than 40 years’ experience in dealing with conveyancing matters.  Alexandra Lusby is a Chartered Legal Executive and has held a full practising certificate since 2002.  Carol Husbands qualified as a Licensed Conveyancer in 2013.

Our scale of fees is based on the value of the transaction and an assessment of the specifics of each case.  This will take into account whether the property is freehold, leasehold or a shared ownership property, and will require us to obtain or consider information from a management company and freeholder landlord.  Where applicable, it will also take into account the amount of work we consider will be required to bring the matter to a successful conclusion for you, based on the time likely to be spent on the case at our firm’s standard hourly rate of £250 plus VAT at 20%.  Therefore, the higher the value of the property and the more work involved, the higher the legal fees will be.  An example of a costs estimate for a freehold residential sale and purchase is shown below.

Examples of matters that can cause additional work are as follows:

• If a legal title is defective or part of the property is unregistered.
• If the property is leasehold or shared ownership.
• If it is discovered building regulations or planning permission has not been obtained.
• If the property is a new build.
• If the property is not connected to mains services.
• If Indemnity Insurance policies are required.
• If you require the matter to be expedited.
• If there is a Lender.

The average conveyancing transaction takes around 10 weeks, but this is dependent on various factors, such as the length of the chain, how long searches, mortgage offers and other information take to be received, and other factors such as complexity of the matter.  We will keep you updated on the progress of your transaction and provide you with realistic timescales once it is clear what the transaction will entail.

FLOW CHARTS SHOWING THE RESPECTIVE STAGES AND ESTIMATED TIMESCALES OF A SIMPLE SALE AND PURCHASE ARE PROVIDED BELOW. 

Example of our costs for the Sale of a Residential Property

Our fees cover all of the legal work required to complete the sale of the Property.  This will include the preparation of contracts, proving title, dealing with enquiries raised by the buyer, exchanging contracts, completing the matter, repaying any mortgages and accounting to you.

The fees quoted below are based on the following assumptions:

The estimated cost of legal work includes all work involved with preparing contract documentation, advising you on the standard documentation required, dealing with enquiries from the buyer’s solicitors, liaising with estate agents and any existing mortgage lender, redeeming the mortgage with the lender and reporting to you on completion.

Our legal fees for a typical or standard residential sale of a registered propertyrange from £800 plus VAT charged at 20% (£160.00) to £1,750 plus VAT at 20% (£350.00) up to the value of £650,000.  For any transaction above this value you will need to contact us directly to obtain a detailed estimate for the costs involved in your property transaction.  Typical disbursements on the sale of a property include the cost of obtaining Land Registry documents, or searches where the property is unregistered. 

Example fee for the sale of a freehold property, registered with HM Land Registry and valued at £350,000.

●	Legal Costs	£1,000.00 plus VAT at 20% (£200.00)
●	Bank Transfer Administration Fee for transfer of funds, for example to any mortgage lender by CHAPS same day transfer.	£40.00 plus VAT at 20% (£8.00)
●	Disbursements (HM Land Registry documents)	£3.00 per document downloaded – minimum cost of £6.00 (no VAT)

 

Disbursements

Disbursements are third party costs related to your matter, such as Land Registry fees and Searches. We handle the payment of the disbursements on your behalf.  These fees may be subject to change if, for example, further information relating to your property becomes available.  HM Land Registry charge £3 (no VAT) per document downloaded in relation to a registered title, and the minimum cost of this would be £6 for both the registered title and the title plan.  Any other documents referred to in the title would have an additional £3 (no VAT) cost per document.  We may also need to carry out bankruptcy searches against each seller at a cost of £2 (no VAT) per person, and Anti-Money Laundering searches at a cost of around £10 per person including VAT at 20%.

Leasehold Property Sales

If your property is a leasehold or shared ownership property, we will need to obtain what is known as a management pack from any management company or freeholder landlord.  The costs of these packs can vary but usually range from £100 to £500, and we will not be able to advise on this until contact has been made with the party who will need to prepare the pack.  There may be VAT payable on these fees but we cannot advise on this until contact has been made with the provider.

There will also be additional work involved in dealing with the sale of a leasehold or shared ownership property and therefore, we make an additional charge of £100.00 plus VAT at 20% (£20.00) for dealing with a leasehold or shared ownership property.

Example fee for the sale of a leasehold property, registered with HM Land Registry and valued at £200,000.

●	Legal Costs	£900.00 plus additional £100.00 plus VAT at 20% (£200.00)
●	Bank Transfer Administration Fee for transfer of funds, for example to any mortgage lender by CHAPS same day transfer.	£40.00 plus VAT at 20% (£8.00)
●	Disbursements (HM Land Registry documents)	£3.00 per document downloaded – minimum cost of £15.00 (no VAT)
●	Essential Leasehold Management Pack from Freeholder Landlord/Management Company	Costs vary dependent on requirements of freeholder and/or management company.

 

Where you are selling a leasehold property, or a property where there is a management company, it is likely that there will be additional fees and disbursements payable to the freeholder/landlord, in relation to service charges and ground rent, and provision of a management information pack.  However, these fees vary, and we cannot give an accurate indication of these until we have made contact with the company.  You should ensure that all payments for rent and service charges are made up to date and that payments continue until the point of completion.  You will be advised of any additional fees as soon as these are made known to us.

 

Example of our costs for a Residential Purchase

Our fees cover all the legal work required to complete the purchase of your new home, from investigating the title to the Property to registration at the Land Registry and submitting the Stamp Duty / Land Tax Return to HMRC or the Welsh Revenue Authority. 

Our fees for a simple freehold purchase of a registered property range from £850.00 plus VAT at 20% (£170.00) to £2,000.00 plus VAT at 20% (£400.00) up to the value of £650,000.  For any transaction above this value you will need to contact us directly to obtain a detailed estimate for the costs involved in your property transaction.

Example fee for the purchase of a freehold registered property valued at £350,000.00

●	Legal Costs (including cost of preparing and submitting Stamp Duty Land Tax Return and Land Registry registration application)	£1,165.00 plus VAT at 20% (£233.00)
●	Bank Transfer Administration Fee for transfer of funds by CHAPS same day transfer to seller’s solicitors.	£40.00 plus VAT at 20% (£8.00)
●	Disbursements – property and Land Registry Searches	Various (see below)
●	Stamp Duty Land Tax (assuming no reliefs available or higher rate payable– see below for further information)	£5,000.00 (no VAT)
●	HM Land Registry registration fee	£150.00 (no VAT)

 

Disbursements

Disbursements are third party costs related to your matter, such as Land Registry fees and Searches.  We handle the payment of the disbursements on your behalf.  These fees may be subject to change if further information relating to your property becomes available.  We will also need to carry out a final search with HM Land Registry prior to completion for which the Land Registry charge £3 (no VAT).  We may also need to carry out bankruptcy searches against each buyer at a cost of £2 per person (no VAT), and Anti-Money Laundering searches at a cost of around £10 per person including VAT at 20%.

Search Fees

Search fees are typically between around £200.00-£500.00, (including VAT, where applicable) but these are dependent on the location, size and type of the property.  Where you are having a mortgage, it is likely your lender will insist on searches being requested.  We will advise as soon as we are able on the total cost of the recommended searches for the property you are purchasing.  The typical standard searches include a local authority search, drainage and water search, environmental search and a chancel search.  We will provide you with full information on the different searches required at the outset of the transaction.

Stamp Duty Land Tax/Welsh Land Transaction Tax

This will depend on the purchase price of your property.  You can calculate the amount you will need to pay by using HMRC's website or, if the property is located in Wales, by using the Welsh Revenue Authority's website.  Links to these websites are below.

SDLT - https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#!/intro

LTT - https://www.gov.wales/land-transaction-tax-calculator

Land Registry fees

HM Land Registry fees for registration are calculated on a sliding scale based on the value of the Property. The brackets are quite wide and, therefore, small changes in the price being paid for a property will not greatly impact the fee payable.  For further information relating to Land Registry fees go to https://www.gov.uk/guidance/hm-land-registry-registration-services-fees

Leasehold Property

If the property you are purchasing is leasehold or shared ownership, we will make an additional charge of £200 plus VAT at 20% (£40.00).  There will also be additional disbursements levied by the management company and/or freeholder landlord for dealing with any notice of assignment, transfer or charge but it is not possible to advise on the cost of these as they vary from provider to provider.

Example fee for the purchase of a leasehold registered property valued at £250,000.00

●	Legal Costs (including cost of preparing and submitting Stamp Duty Land Tax Return and Land Registry registration application)	£1,065.00 plus additional £200.00 plus VAT at 20% (£233.00)
●	Bank Transfer Administration Fee for transfer of funds by CHAPS same day transfer to seller’s solicitors.	£40.00 plus VAT at 20% (£8.00)
●	Disbursements – property and Land Registry Searches	Various (see below)
●	Stamp Duty Land Tax (assuming no reliefs available or higher rate payable– see below for further information)	£0.00
●	HM Land Registry registration fee	£150.00 (no VAT)
●	Notice fees to Freeholder Landlord/Management Company dependent on requirements of Lease	Costs vary dependent on requirements of freeholder and/or management company.

 

Where you are purchasing a leasehold property, there will likely be additional sums to be paid.  The landlord/management company may require a notice to be served upon them on completion notifying them of the change of ownership and this will likely attract a fee.  In addition, you may be required by the seller to reimburse them for any service charge or ground rent that they have already paid.  We will advise of as soon as this information is provided to us by the seller’s solicitors. 

Surveys and Valuations

It is up to you whether you choose to have a survey of the property you are purchasing, but it is important to note that this is something that only you can decide.  It will be up to you to instruct a surveyor and they should advise you on the level of survey which is advisable for the property you are purchasing.  Whichever report you decide upon, you should remember that the risk is entirely yours when buying a property and that if it does have any defects, you will be unlikely to have any come back against the seller.  This is because the old maxim “Caveat Emptor” (“let the buyer beware”) still applies to property purchase.  In view of this you are strongly recommended to have a valuation and survey undertaken at the very least.  The cost of repairs, which may not be revealed by a simple valuation, may result in the expenditure of many thousands of pounds, probably beyond the means of the buyer. Indeed, if the cost of repairs is high you would be entitled to re-negotiate a reduction in the price if you have not already exchanged contracts, or withdraw from the transaction altogether.  If you are having a mortgage, your lender may also insist on a full survey, however, if they do not, they will only carry out a basic valuation on the property to confirm that it is worth the price you are paying and what they are lending you.  You should, therefore, carefully consider whether you want to have a survey.  Further information on surveys can be found at https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/building-surveying-standards/home-surveys.

 

View Purchase Flow Chart

View Sale Flow Chart

 

PLEASE CONTACT US TO OBTAIN AN ESTIMATE OF OUR COSTS FOR YOUR SPECIFIC TRANSACTION.

Updated 4^th October 2023