The costs for a conveyancing transaction can be misleading. Whilst it is now expected that a fixed legal fee can be given for a straightforward transaction, often, the plethora of unadvertised fees and costs which can arise is unique to each individual case. Each conveyancing transaction is split into two forms of costs, the legal fee owed to the Solicitor and the Disbursements which are usually paid to third parties to conduct mandatory tasks during the transaction. We have elaborated on some of these disbursements below so you’re aware of the reasons for the additional costs.
ANTI-MONEY LAUNDERING CHECKS
Required by the government to prevent money laundering, these are various legal checks to confirm your identity when buying or selling property. Your ID documents will be compared against other independent sources, with this process now commonly carried out online.
The cost of money laundering checks may vary, though foreign nationals and ex-pats tend to have to pay more as checking their ID is usually more complicated.
STAMP DUTY LAND TAX
Stamp Duty Land Tax is actually a disbursement and its cost depend on the property price. Read more about Stamp Duty here.
HM LAND REGISTRY FEES
Every land and property transaction in England must be registered at HM Land Registry. This government department charges a compulsory fee for registering the change in ownership, with the fee applied on a sliding scale depending on the price of the property or the mortgage on it. Current fees range from £20 to £1,105. Check the Land Registry site for more information on fees.
OFFICIAL COPY ENTRIES AND FILED PLAN
Your solicitor must apply to the Land Registry for an official copy of the deeds and an official copy of the filed plan when you are selling your property. Where a document referred to in the official copy is not set out in the official copy, your solicitor will have to obtain an official copy of the document. When you are buying a property, your solicitor will obtain an official copy of the filed plan to use for search purposes, sometimes referred to as the Search Plan.
SEARCHES
When you buy a property or remortgage your existing home, your solicitor must undertake certain legal searches on the property that reveal more information about the land on which it stands, the surrounding area, environment, water and drainage, and details of any planning applications. Other common searches in England and Wales are chancel repairs and mining and brine mining. Read more about the most common searches and why they are required here.
LAND CHARGES (BANKRUPTCY) SEARCH
When you are buying a property, your solicitor must carry out a search against the names of all buyers and/or borrowers in the Land Charges register. This search will reveal if anyone involved in the purchase is currently bankrupt, is an undischarged bankrupt or is about to be made bankrupt in a pending court action.
LOCAL SEARCH INDEMNITY INSURANCE
A full local search on a property may not be required when you are buying without a mortgage or where your lender agrees. In this instance, your solicitor may recommend that you purchase local search indemnity insurance to protect you against any problems that arise that might otherwise have been revealed in a local search.
OTHER INDEMNITY INSURANCE
Solicitors use indemnity insurance to protect you from any number of issues that could arise and affect your sale or purchase. Common issues are around title deeds, leases, insolvency, restrictive covenants and missing landlords. The solicitor will arrange the insurance and you will pay the premium.
PROPERTY FRAUD CHECKS
TRANSFER OF OWNERSHIP
BANK TRANSFER OR TELEGRAPHIC TRANSFER FEES
ADDITIONAL FEES AND COSTS FOR LEASEHOLD PROPERTY
LEASEHOLD: LANDLORD’S NOTICE FEE
Where the property you are buying is leasehold, you must pay a fee to the freeholder (landlord) or their agent to register you as the new owner and your lender as an interested party. Where a separate management company is involved in managing the lease, you may have to pay a fee to the management company.
LEASEHOLD PACK OR MANAGEMENT COMPANY INFORMATION
When you sell a leasehold property that is subject to management company rules, ground rent payment and service charges, your solicitor will require the specific details of these from the freeholder or management company. The management company will charge a fee for providing this information and the fees varies from company to company.
GROUND RENT/SERVICE CHARGE
In order to provide all our clients with the upmost transparency, we have listed
a non-exhaustive list of additional charges and disbursements which may arise during your case:
| Additional Charges (where applicable) | Fee* |
| Lender Representation Fee (Purchase) | £100 + VAT (at 20%) |
| Lender Portal admin Fee | £50 + VAT (at 20%) |
| SDLT Return Preparation Fee | £100 + VAT (at 20%) |
| Telegraphic Transfer Charge (each) | £35 + VAT (at 20%) |
| Indemnity Insurance Arrangement Fee (per Risk) | £60 + VAT (at 20%) |
| Deed of Covenant Arrangement Fee | £180 + VAT (at 20%) |
| Help to Buy Administration Fee | £50 + VAT (at 20%) |
| Help to Buy Equity Scheme | £360 + VAT (at 20%) |
| Right to Buy Administration Fee | £125 + VAT (at 20%) |
| Anti-Money Laundering Check Fee | £15 + VAT (at 20%) |
| Notice of Assignment/Charge (per notice) | £100 +VAT (at 20%) |
| Disbursements (where applicable) | Cost** |
| Land Registry Document Fees (no VAT) | £6 to £30 |
| Bankruptcy Search (per name) (no VAT) | £2 |
| Land Registry Priority Search Fee (per title) (no VAT) | £3 |
| Land Registry Registration Fees (no VAT) | £20 to £1,105 |
| Land Charges Search Fee (no VAT) | £10- £15 |
| Property Searches | £95 to £300 (inc. VAT at 20%) |
| Freehold/Leasehold Management Pack, Notices & Certificates (estimated) | £50 to £600 (inc. VAT at 20%) |
| Lender Portal fee | £30 (inc. VAT at 20%) |
| Deed of Covenant Preparation Fee | £150 + VAT (at 20% |
| Stamp Duty Land Tax | Variable |
All disbursement costs are estimates only and may vary on a case-by-case basis. Also, all costs information is subject to our terms and conditions and client waivers.
Furthermore, any quotes generated may vary pursuant to any referral payments included.
CONTACT US
Contact us now directly on 0800 03 555 39 to discuss how we can help you or complete our no obligation online enquiry form and we will call you back.