How much does residential conveyancing cost?

What Are Conveyancing Fees?

Conveyancing fees refer to the costs you pay for the legal side of buying, selling, or remortgaging a property.

These fees are charged by a professional – usually a conveyancer or solicitor – to manage the paperwork, property searches, and transfer of ownership. When buying or selling a residential property, conveyancing ensures the process is legally sound and that no complications arise during or after the transaction.

Conveyancing fees are usually split into two main parts:

Legal fees – These cover the cost of the conveyancer’s time and expertise.

Disbursements – These are third-party costs that the conveyancer pays on your behalf (e.g., property searches, Land Registry fees).

You’ll need conveyancing whether you're:

• Buying or selling a property
• Remortgaging
• Releasing equity from your home

The Breakdown of Conveyancing Costs

The total cost of conveyancing for residential properties can vary based on a few factors. Typically, you'll need to budget for both legal fees and disbursements. Here's a breakdown of what you can expect:

Legal Fees

Legal fees for conveyancing can range from £500 to £1,500 (plus VAT). The total amount will depend on factors such as the complexity of the transaction, the type of property, and whether the conveyancer charges a fixed fee or hourly rate.

For a straightforward purchase or sale, many conveyancers offer fixed-fee packages that cover standard legal work. However, additional costs may apply if complications arise, such as if the property is leasehold or the transaction is urgent.

Disbursements

Disbursements are additional charges for services provided by third parties, and they usually include:

Local Authority Searches: £250-£450 – This is an essential search to check for any planning or local issues that could affect the property.

Land Registry Fees: £20-£500 – This varies based on the property value and covers the cost of registering the property in your name.

Stamp Duty Land Tax (SDLT): Varies – This is a tax payable if the property is worth more than £250,000 (with different rates across the UK). A conveyancer will calculate and pay it on your behalf.

Bank Transfer Fees: £20-£50 – Charged for transferring funds to the seller’s conveyancer.

ID Verification Fees: £5-£20 – Required to confirm your identity as part of anti-money laundering checks.

Detailed Look at Legal Fees: What You’re Paying For

Legal fees cover the work that your conveyancer or solicitor carries out throughout the conveyancing process.

This includes handling contracts, providing legal advice, liaising with the other party’s conveyancer, and managing the transfer of funds.

Key tasks included in legal fees:

Contract work: Drafting and reviewing contracts to ensure everything is in order.

Searches: Requesting property searches (such as local authority searches) to identify any potential risks or issues.

Liaising with lenders: Working with mortgage providers and ensuring the necessary legal paperwork is in place.

Completion of transfer: Ensuring the funds are transferred, and ownership of the property is registered with the Land Registry.

Some solicitors charge an hourly rate for this work, while others offer fixed-fee packages such as Pathway Conveyancing. If you’re opting for a fixed fee, make sure to check what’s included and whether any additional work will come at an extra cost.

Disbursements: Third-Party Costs Explained

Disbursements are necessary additional costs that your conveyancer will pay to third parties as part of the process.

They are not part of the conveyancer's legal fee, but they are crucial to ensuring that the transaction is completed properly. Here's what you can expect:

Conveyancing Searches: The most common search packages include checks with local authorities, drainage companies, and environmental agencies.

These will highlight any potential issues with the property, such as planning restrictions or flood risks. Searches can cost anywhere from £250 to £450, depending on the location and type of property.

Land Registry Fees: These are mandatory charges to register your ownership of the property with HM Land Registry. The cost ranges from £20 to £500, depending on the value of the property. For more expensive homes, this fee will be higher.

Stamp Duty Land Tax (SDLT): If you're buying a property over £250,000 in England, you’ll need to pay Stamp Duty. The rate depends on the property value and your circumstances (e.g., first-time buyer or second home). Your conveyancer will calculate and submit this payment to HMRC on your behalf.

Anti-Money Laundering Checks: To comply with legal regulations, conveyancers need to verify your identity and confirm the legitimacy of funds used in the transaction. This usually costs between £5 and £20.

These disbursements ensure that all necessary checks are made, and the legalities of buying or selling your property are adhered to. It's important to clarify whether your conveyancer's quote includes all expected disbursements to avoid any surprise fees.

Related:

What is Residential Conveyancing?

What is an extension of tenancy agreement?

What does a Residential Conveyancer do?

How Long Does the Conveyancing Process Take?

Additional Conveyancing Costs for Leasehold Properties

If you're buying or selling a leasehold property, you can expect higher conveyancing costs compared to freehold properties. This is due to the additional work and complexity involved in dealing with the lease.

Here’s a breakdown of the common extra fees associated with leasehold transactions:

Landlord’s Sales Pack: This is usually required by the buyer’s conveyancer and contains important details about the property’s lease, service charges, and ground rent. The cost can range from £200 to £500, depending on the managing agent or freeholder.

Notice of Transfer Fee: When ownership of the leasehold property changes, the landlord or managing agent must be informed. This fee typically ranges from £100 to £300.

Deed of Covenant: This is an agreement between the buyer and the landlord to comply with the terms of the lease. Conveyancers charge around £150 to £300 for preparing this document.

Certificate of Compliance: Some leases require a certificate to confirm that the buyer is compliant with the lease’s terms. This can cost between £100 and £300.

Leasehold Management Information Pack: This pack provides critical information on service charges, insurance, and any planned maintenance work. Fees range from £150 to £500, depending on the management company.

These extra costs can add significantly to the overall conveyancing bill, so it’s important to clarify them with your conveyancer early on if you’re dealing with a leasehold property.

Factors That Influence Conveyancing Fees

Conveyancing fees are not one-size-fits-all. The amount you’ll pay will depend on several factors that can either raise or lower the overall cost.

Here are the key things that can influence how much you’ll pay:

Property Value: Generally, the higher the property value, the more work is involved in the transaction. Many conveyancers charge on a sliding scale based on the value of the property, particularly when buying or selling.

Location: Conveyancing fees can vary depending on where the property is located. Some areas, particularly in London and the South East, may command higher fees due to higher property values and demand.

Freehold vs Leasehold: As mentioned earlier, leasehold properties come with additional complexities and disbursements. If you're dealing with a leasehold, expect higher legal fees and more disbursements.

Urgency: If you need to fast-track the conveyancing process, your solicitor may charge an expedition fee. This can add between £100 and £300 to the total cost.

Complexity of the Transaction: If any unusual issues arise, such as boundary disputes, shared ownership, or if you're buying a new build, the solicitor may charge more due to the additional work involved.

Each of these factors should be considered when getting a quote from a conveyancer. Make sure to ask for a detailed breakdown so you know exactly what you're paying for.

How to Choose the Right Conveyancer: What to Look For in a Quote

Choosing the right conveyancer is essential to ensuring your property transaction runs smoothly. When you're comparing quotes, there are a few key things you should look out for to avoid any surprises later on:

Transparency of Fees: Make sure the quote includes a full breakdown of all legal fees and disbursements. A good quote will outline the total cost upfront, with no hidden charges lurking in the small print.

Fixed Fees vs Hourly Rates: Some conveyancers charge a fixed fee, while others bill by the hour. Fixed fees are often preferable because they give you a clear idea of what you’ll pay, but always check what is and isn't included in the quote.

Disbursements: Ensure that all disbursements are listed and that there’s no mark-up. Some conveyancers may charge extra for services like photocopying or postage – these costs should ideally be included in the legal fee.

VAT: Always check whether VAT is included in the quote, as it can add a significant amount to the total bill.

Accreditations and Reviews: Make sure the conveyancer is regulated by a recognised body, such as the Solicitors Regulation Authority (SRA) or the Council for Licensed Conveyancers (CLC). It’s also worth checking online reviews and asking for recommendations from friends or family.

Taking the time to thoroughly compare quotes and check the details will help you avoid unexpected costs and ensure you’re getting a good deal.

Related:

What is a Transfer of Equity?

Special Conveyancing Scenarios and Associated Costs

Not all property transactions are the same, and in some cases, you may face additional costs depending on your specific circumstances. Here are some special scenarios where you might encounter extra fees:

Remortgaging

If you’re remortgaging your home, you’ll still need a conveyancer to handle the legal aspects of switching lenders. The average cost for remortgaging conveyancing is around £500 to £1,000. Key disbursements include search fees (£250 to £450), Land Registry fees (around £20), and bank transfer fees (£20-£50).

View our Remortgaging conveyancing services.

First-Time Buyers

As a first-time buyer, you may benefit from reduced conveyancing costs, particularly if you’re purchasing a property below the threshold for Stamp Duty. Many conveyancers offer discounts or packages aimed at first-time buyers.

View our First-Time Buyers conveyancing services.

New Build Properties

Buying a new build can be more complex, often requiring extra legal work to check planning permissions, warranties, and the build’s status. Conveyancing fees for new builds tend to be higher, with an additional supplement ranging from £200 to £500.

View our New Build conveyancing services.

Help to Buy and Shared Ownership

If you’re using a Help to Buy scheme or purchasing a shared ownership property, the legal process becomes more involved. Additional legal fees of around £200 to £300 may apply due to the extra paperwork and government involvement.

View our Help to Buy conveyancing services.

Auction Purchases

If you're buying a property at auction, you’ll need a conveyancer ready to act quickly. Auction properties typically require fast conveyancing within a set timeframe (usually 28 days), which may lead to higher legal fees due to the urgency.

In each of these scenarios, it's important to clarify all additional costs upfront with your conveyancer to ensure there are no surprises during the process.

When Are Conveyancing Fees Paid?

Conveyancing fees are usually paid in stages throughout the buying or selling process. It's important to understand when you'll need to pay specific fees, so you can plan your budget effectively.

Upfront Costs: Some conveyancers may ask for an initial deposit to cover the cost of disbursements, such as searches. This can range from £200 to £500. The majority of these costs will be payable shortly after your conveyancer is instructed to begin the process.

During the Process: You may be required to make further payments for disbursements as the transaction progresses. For example, conveyancing searches are often carried out early in the process and will need to be paid for at that time.

On Completion Day: The bulk of the fees, including the conveyancer’s legal fees and the remaining disbursements (such as Land Registry fees and Stamp Duty), will usually be payable on the day of completion.

This is when the ownership of the property is transferred to you, and the final payments need to be made to complete the process.

Your conveyancer should provide a clear breakdown of when each payment is due. Ensure that you're clear about the payment schedule so you can avoid any unexpected requests for funds.

How to Save Money on Conveyancing Fees in 2024

There are several ways to reduce your conveyancing costs while still ensuring that you receive a quality service. Here are some tips to help you save money:

Compare Quotes: Don’t settle for the first quote you receive. Use comparison websites or contact multiple conveyancers to get a range of prices. Be sure to check what is included in each quote and whether there are any hidden costs.

Use an Online Conveyancer: Online conveyancers often offer cheaper rates than traditional high-street firms. However, make sure the service meets your needs and that communication will be smooth, especially if you prefer face-to-face contact.

Fixed Fee Conveyancing: Some conveyancers offer fixed fees, which can help you avoid unexpected costs if the transaction becomes more complex. Ensure the fixed fee includes all necessary work and isn’t just a basic package.

No Sale, No Fee: Look for conveyancers who offer a ‘no sale, no fee’ option. This means you won’t have to pay their legal fees if the sale falls through. Keep in mind, however, that you may still have to cover disbursements for work already carried out.

First-Time Buyer Discounts: If you're a first-time buyer, look for conveyancers who offer discounts or packages tailored to your situation. This can sometimes save you a significant amount on legal fees.

By carefully comparing quotes and considering your options, you can find ways to reduce your conveyancing costs without compromising on service quality.

Do You Need a Conveyancer or Can You Do It Yourself?

While it’s possible to handle the conveyancing process yourself, known as ‘DIY conveyancing,’ it is generally not recommended unless you have legal expertise. Here’s why:

DIY Conveyancing

DIY conveyancing means that you take on the responsibility of preparing contracts, conducting property searches, and dealing with all the legal aspects of transferring property ownership. While this can save you on legal fees, the process is complex and time-consuming, and mistakes can be costly.

You would also need to handle communication with the other party’s solicitor or conveyancer, navigate any potential legal complications, and ensure that the transfer of ownership is legally binding.

Risks of DIY Conveyancing

Complicated Legal Process: The legal process can be overwhelming, especially if the transaction involves a leasehold property, shared ownership, or issues such as boundary disputes.

No Professional Liability: If an error occurs during the process, you won’t have the protection of a conveyancer’s professional indemnity insurance, meaning you would be liable for any financial losses.

Mortgage Lender Requirements: Most mortgage lenders require you to use a professional conveyancer to protect their interests in the transaction.

If you're getting a mortgage, DIY conveyancing may not be an option.

While DIY conveyancing can be an option for some straightforward transactions, the risks usually outweigh the potential savings, and hiring a conveyancer is often the safer choice.

The Role of Technology in Modern Conveyancing

Technology is playing an increasingly important role in the conveyancing process, helping to streamline transactions and improve communication between clients and conveyancers. Here’s how modern technology is making a difference:

Online Conveyancing

Online conveyancing services allow clients to manage much of the process remotely, which can save time and money. Documents can be uploaded and signed electronically, and many online conveyancers offer secure portals for tracking the progress of your transaction in real-time.

Electronic Identity Verification

One of the key technological advances is electronic identity verification, which helps conveyancers quickly and securely verify clients’ identities. This reduces the need for face-to-face meetings and speeds up the initial stages of the process.

Digital Signatures and Paperless Transactions

The use of digital signatures is becoming more widespread in conveyancing, allowing contracts to be signed electronically. This can significantly speed up the process, especially for buyers and sellers in different locations.

Property Search Automation

Many conveyancers now use automated systems to conduct property searches, which can reduce the time it takes to receive search results. These systems often provide more comprehensive information and can identify potential issues earlier in the process.

While online and digital conveyancing services can be convenient and cost-effective, it’s important to ensure that the conveyancer you choose has secure systems in place to protect your personal data.

Frequently asked questions with simple answers

1. What is conveyancing?

Conveyancing is the legal process of transferring ownership of a property from one person to another. It involves handling contracts, conducting property searches, and ensuring all legal requirements are met during a property transaction.

2. Do I need a conveyancer to buy or sell a house?

Yes, it is highly recommended to use a conveyancer or solicitor when buying or selling a property. They handle all the legal paperwork and ensure the transaction is completed correctly and in compliance with property laws.

3. How much do conveyancing fees cost?

Conveyancing fees typically range from £500 to £1,500, depending on the complexity of the transaction, the type of property, and the conveyancer’s fee structure. Additional disbursements, like searches and Land Registry fees, will also apply.

4. What are disbursements in conveyancing?

Disbursements are costs paid to third parties on your behalf during the conveyancing process. These include fees for property searches, Land Registry charges, and Stamp Duty, among others.

5. What’s the difference between freehold and leasehold conveyancing?

Freehold properties are simpler to deal with, as you own the property and the land it’s on. Leasehold properties involve additional work because you own the property but not the land, which usually results in higher conveyancing fees due to added legal checks.

6. When do I pay my conveyancing fees?

Conveyancing fees are usually paid in stages. Some costs, like property searches, may need to be paid upfront, while the remaining fees are typically due at completion.

7. Can I do my own conveyancing?

While it’s possible to do DIY conveyancing, it’s not recommended due to the complexity and legal risks involved. Most mortgage lenders also require you to use a professional conveyancer.

8. How long does the conveyancing process take?

The conveyancing process typically takes between 8 to 12 weeks, but this can vary depending on factors like property type, legal complications, and how quickly documents are processed.

9. What are the key steps in the conveyancing process?

The key steps include instructing a conveyancer, conducting property searches, exchanging contracts, transferring funds, and registering the property with the Land Registry.

10. What happens if my property transaction falls through?

If the transaction falls through, you may still need to pay some fees, such as disbursements and work already completed by the conveyancer. However, if you've opted for a ‘no sale, no fee’ service, you won’t be charged the conveyancer’s legal fees.