How Much Does Conveyancing Cost? Breaking Down the Fees

Introduction

When buying or selling a property in the UK, one of the key costs you’ll need to budget for is conveyancing. Conveyancing refers to the legal process of transferring ownership of a property, and it involves several fees and charges. These costs can vary depending on whether you’re buying or selling, the complexity of the transaction, and the conveyancer or solicitor you choose.

In this guide, we’ll break down the various conveyancing costs you can expect to pay, from solicitor fees to disbursements and additional charges. We’ll also explore ways to save money on conveyancing, including no-sale-no-fee options and tips for finding the best conveyancer for your needs.

Conveyancing costs are often overlooked when planning a property purchase, but they can add up to a significant amount, especially when combined with other expenses like Stamp Duty, surveys, and mortgage fees. By understanding the breakdown of conveyancing fees, you can budget more accurately and avoid any unexpected surprises.

What is Conveyancing?

Conveyancing is the legal process involved in transferring ownership of a property from one person to another. It includes everything from drafting contracts to conducting property searches, handling payments, and registering the property with the Land Registry. Both buyers and sellers need a conveyancer or solicitor to carry out this process on their behalf.

The conveyancing process typically involves the following stages:

1. Instruction: You instruct a conveyancer to act on your behalf.
2. Drafting Contracts: The conveyancer drafts and reviews contracts for the sale or purchase.
3. Property Searches: The conveyancer conducts local authority and environmental searches to identify any issues with the property.
4. Exchange of Contracts: The sale becomes legally binding once contracts are exchanged.
5. Completion: The final stage, where ownership is transferred, and the keys are handed over.

Conveyancing costs can vary depending on the complexity of the transaction, the property value, and whether you’re buying or selling.

How Much Does Conveyancing Cost?

The cost of conveyancing can vary depending on several factors, including the location of the property, the value of the property, and whether you’re buying or selling. On average, conveyancing costs for a typical UK property purchase range from £800 to £1,500, while conveyancing costs for selling a property are slightly lower, typically between £500 and £1,000.

Here’s a breakdown of the typical conveyancing costs:

1. Conveyancer’s or Solicitor’s Fees: These are the main costs associated with conveyancing. They can range from £500 to £1,500 depending on the conveyancer you choose, the complexity of the transaction, and the value of the property. Solicitors tend to charge more than licensed conveyancers, but they may be necessary for more complex transactions.
2. Disbursements: These are additional costs that the conveyancer will pay on your behalf, such as property searches, Land Registry fees, and bank transfer fees. Disbursements typically add an extra £300 to £500 to the overall conveyancing costs.
3. Stamp Duty Land Tax (SDLT): If you’re buying a property in England or Northern Ireland, you’ll also need to pay Stamp Duty. The amount you pay depends on the

How Much Does Conveyancing Cost? Breaking Down the Fees

purchase price of the property. For first-time buyers purchasing a property up to £500,000, there may be no Stamp Duty on the first £300,000. Above this, rates range from 2% to 12%, depending on the price of the property.

4. Land Registry Fees: When you buy a property, your conveyancer will register your ownership with the Land Registry. The cost of this varies depending on the value of the property and whether the transaction is submitted electronically or by paper. Fees typically range from £40 to £270.
5. Search Fees: Property searches are an essential part of the conveyancing process, as they check for issues like planning restrictions, flood risks, and environmental hazards. Search fees vary depending on the location of the property, but they usually cost between £200 and £400.
6. Bank Transfer Fees: These cover the cost of transferring funds between banks, such as the payment of the deposit and the final purchase price. Bank transfer fees are typically around £20 to £50 per transaction.
7. VAT: Don’t forget that VAT is charged on all solicitor or conveyancer fees at the standard rate of 20%. Make sure to check whether the quotes you receive include VAT.

No-Sale-No-Fee Conveyancing

One way to manage the risk of paying for a failed property transaction is to choose a conveyancer that offers a no-sale-no-fee service. With this option, if your property transaction falls through for any reason (for example, the buyer pulls out or there are issues with the property title), you won’t have to pay your solicitor or conveyancer’s fees. However, you may still need to pay for disbursements like property searches and Land Registry fees.

No-sale-no-fee conveyancing can provide peace of mind, especially if you’re worried about the transaction not going ahead. It’s worth asking your conveyancer if they offer this service before instructing them.

How to Save on Conveyancing Costs

Conveyancing costs can add up, but there are several ways you can save money without compromising on quality:

1. Shop Around: It’s always a good idea to get quotes from multiple conveyancers or solicitors. Some may charge lower fees for the same services, so comparing quotes can help you find the best deal. Be sure to ask for a full breakdown of costs, including VAT and disbursements, so you can compare accurately.
2. Opt for a Licensed Conveyancer: Licensed conveyancers often charge less than solicitors, but they can still handle most property transactions. If your sale or purchase is relatively straightforward, choosing a licensed conveyancer could save you money.
3. Fixed-Fee Conveyancing: Some conveyancers offer fixed-fee services, which can provide certainty over the cost of your conveyancing. This is especially useful if your transaction is likely to be complex or drawn out, as it prevents you from being hit with unexpected hourly fees.
4. Consider Online Conveyancers: Many online conveyancers offer lower fees than traditional high street firms. They typically handle everything remotely, which can be more convenient and cost-effective. However, make sure to check reviews and ensure the firm is regulated by the Solicitors Regulation Authority (SRA) or the Council for Licensed Conveyancers (CLC).

What to Watch Out For in Conveyancing Quotes

When comparing conveyancing quotes, it’s important to be aware of hidden fees that may not be included in the initial quote. These can include:

• Additional fees for complex transactions: If your transaction involves a leasehold property, shared ownership, or Help to Buy schemes, you may be charged extra for the additional work involved.
• Mortgage fees: If you’re buying with a mortgage, your conveyancer may charge extra to liaise with the mortgage lender and handle the release of funds.
• Unforeseen disbursements: While most disbursements are standard, some properties may require additional searches or legal work, which can add to the cost.

Always ask for a full, itemised breakdown of costs before instructing a conveyancer, and check whether VAT is included in the quote.

Conclusion

Conveyancing costs are an essential part of buying or selling a property in the UK, but understanding the breakdown of fees can help you budget more effectively and avoid any surprises. By shopping around, considering no-sale-no-fee options, and choosing the right conveyancer for your needs, you can keep costs manageable while ensuring that your property transaction proceeds smoothly.