While preparing to put up a property for sale or buy one, it is good to research how much the conveyancing process will cost you.
Due to the complicated process, a conveyancing solicitor or a licensed conveyancer handles the conveyancing process. The complexity of the process may determine if you should hire a solicitor or a conveyancer. Get an instant online conveyancing quote and see how much you could save.
Sometimes, individuals can choose to undertake this overwhelming process themselves if they buy in cash. Still, if you are taking out a mortgage, the provider would require that you use a conveyancer on their panel.
Conveyancing quotes can add a substantial cost to the property transaction. This write-up will look at the fundamental elements of conveyancing quotes.
How much should conveyancing cost?
A conveyancing fee is an amount that a client pays to the conveyancer for legal and administrative duties done.
Your conveyancer will give you a conveyancing quote which usually includes:
· Legal Fees – This is the quote provided by the conveyancer for services done.
· Disbursements- This is payment to third parties like the local authority search and Her Majesty Land Registry search for their services.
The average legal fees are between £700 and £1500 for purchasing or selling an average freehold property.
The legal fees are higher for leasehold property because they involve more legal work and effort.
It is essential to know that high legal fees are not equal to getting excellent service. Also, it is wise to approach very cheap legal services cautiously because the initial conveyancing quote can often be lower, and many hidden costs start showing up in the middle of the process.
It is worth noting that conveyancing solicitors are likely to charge more than licensed conveyancers. This is because a conveyancing solicitor can offer a broader range of legal services and have vast legal knowledge that might come in handy.
Disbursements are fees made to third parties involved in the conveyancing process.
The principal conveyancing disbursements through which you’ll incur costs are:
§ Anti-money laundering check:
Done by online companies to verify your identity
§ Cost of searches:
The buyer’s conveyancer does it once the offer has been accepted, including local authority search, HM Land Registry search, environmental search, and water and drainage search.
§ Bankruptcy search:
This is needed if you are taking a mortgage. If you are paying cash, this is not needed.
§ Cost of title deed:
Both the buyer and seller need a copy of the title deeds. If the property in question is a leasehold property, the cost of getting a copy will be higher as the title deeds may consist of several documents.
§ Transfer of ownership at Land Registry:
Your conveyancer will have to pay Her Majesty’s land registry fee for transferring ownership as a buyer.
§ Stamp Duty Land Tax (STLT):
As a buyer that wants to buy a property that crosses the STLT threshold, you need to pay stamp duty land tax. However, this is not in all cases.
§ Bank transfer fee:
You will have to send payments to the seller or your mortgage provider using a telegraphic transfer during the conveyancing process. Your conveyancer will charge a “telegraphic transfer fee” fee for performing the transfer, plus the bank transfer fees. The Bank transfer fees vary depending on the bank.
§ Charges for leasehold properties
If you are purchasing a leasehold property, you may have to pay a fee for registering a change of ownership and for a Deed of Covenant.
Preparing for the conveyance cost is an excellent way to prepare. With this breakdown, you can get a fair idea of how many things you are paying for and how much you should pay in conveyancing fees.
Remember, it is alright to compare conveyancing quotes and ask questions if you are confused at any points.