How much are Conveyancing Fees? - House Buyer Bureau

Buying or selling a property is a significant financial transaction that involves a complex legal process known as conveyancing. Conveyancing fees are the charges associated with the legal work and administrative tasks performed by a conveyancer or solicitor to transfer the legal ownership of a property from one party to another.

What are conveyancing fees?

Conveyancing involves various legal and administrative tasks, including property searches, drafting and reviewing contracts, preparing legal documents, conducting due diligence, liaising with relevant parties, and registering the property with the appropriate authorities. Typical conveyancing costs in the UK are charged by conveyancers, solicitors, or law firms that specialise in property law, for carrying out the aforementioned tasks.

How are house conveyancing fees calculated?

Conveyancers or solicitors may charge conveyancing fees based on different methods, including fixed fees, hourly rates, or a percentage of the property value. It’s important to clarify the fee structure with your conveyancer or solicitor before engaging their services to avoid any surprises.

Fixed fees

Some conveyancers or solicitors may charge a fixed fee for their services, which means you will pay a set amount regardless of the property value or complexity of the transaction. Fixed fees can provide transparency and predictability, as you know the exact cost upfront.

Hourly rates

Conveyancers or solicitors may charge an hourly rate for their services, where the total cost is based on the time spent on the transaction. Hourly rates can be beneficial for simple transactions or when the scope of work is uncertain, but they may result in higher costs if the transaction becomes complicated or takes longer than anticipated.

Percentage of property value

In some cases, conveyancers or solicitors may charge a percentage of the property value as their fee. This can be calculated as a percentage of the purchase or sale price or a combination of both.

It’s important to note that conveyancing fees usually do not include other costs associated with buying or selling a property; these costs are separate from conveyancing fees and should be budgeted for separately.

How much are the legal fees?

Legal fees for conveyancing can cost between £500-£1,500 and will vary based on the specific circumstances of the property and the transaction.

What is the average conveyancing fee UK?

Research by ReallyMoving.com has found the average conveyancing cost for buying a freehold property is £909, and buying a leasehold property will have an average conveyancing fee of £1,360. The higher charge for leasehold properties is because leases are often complicated and will need additional time to check.

In comparison, research by Home Owners Alliance has found that conveyancing costs when selling a property typically range from £610-£950.

It’s important to remember that whether buying or selling, higher-priced properties see higher conveyancing fees, likely above the current averages.

What factors affect the cost of house conveyancing?

There is a range of factors can affect the cost of conveyancing fees, including:

The cost of disbursements – third-party costs incurred by the conveyancer or solicitor on behalf of the client, such as property searches or title registrations
If your region has different regulations or requirements
If the sale involves complicated legal work (like dealing with a deceased estate or additional parties)
If the transaction has tight deadlines
If the conveyancers carry out additional services as part of the package, including arranging building inspections or providing legal advice on related matters
If your conveyancers charge a higher rate because of their experience or reputation
If any additional legal work is required, such as:
- If the property is especially high-value
- If the deposit was in part funded by the Help to Buy Scheme
- If the property is leasehold

It’s important to discuss all potential costs, including disbursements and any additional services, with your conveyancer or solicitor upfront to get a clear understanding of the total fees involved in your specific transaction.

What are conveyancing fees when buying a house?

There are a few different fees that make up the overall conveyancing fees when buying a house, the first of which is the legal fee, which covers the cost of the conveyancer or solicitor’s professional services in handling the legal aspects of the property transaction. This includes reviewing contracts, conducting property searches, preparing legal documents, and coordinating with other parties involved in the transaction.

On top of the legal fees are the search fees which cover the cost of various property searches, such as title searches, local authority searches, environmental searches, and drainage searches. These searches are conducted to identify any potential issues or restrictions that may affect the property.

There are also fees charged by the government’s Land Registry to register the change of ownership and any new mortgage on the property.

Stamp Duty Land Tax (SDLT) is a tax levied by the government on properties sold above a certain threshold, and the amount is usually calculated and paid on your behalf by your conveyancer. In Scotland, there is a Land and Buildings Transaction Tax (LBTT) and in Wales, it’s a Land Transaction Tax (LTT). The amount of stamp duty payable depends on the purchase price of the property and other factors, such as whether it is a first-time purchase or a second home.

What are conveyancing fees when selling a house?

Just like the buyer’s legal fee, the seller’s legal fee covers the cost of the conveyancer or solicitor’s services in handling the legal aspects of the property transaction from the seller’s perspective, including preparing contracts, responding to inquiries, and facilitating the transfer of ownership.

There may also be additional fees for services such as arranging the discharge of any existing mortgages, dealing with leasehold properties, or handling other special circumstances that may arise during the transaction.

What are the main disbursements in conveyancing?

Search fees
Conveyancers or solicitors conduct various property searches to gather information about the property and its surroundings. The purpose of these searches is to identify any potential issues or restrictions that may affect the property, such as planning permissions, building regulations, or environmental risks, and may include the following searches:

Local authority
Environmental searches
Chancel repairs
Coal mining

Local authority searches gather information from the local authority’s records and typically include information on planning permissions, building regulations, road adoption status, conservation areas, and other matters that may affect the property.
Building regulations searches are conducted to verify if the property has been constructed or altered in compliance with the relevant building regulations. This may include checking for approvals of building works, completion certificates, or any other relevant documents related to building regulations compliance.
Water and drainage searches obtain information about the location and condition of water and drainage connections, water quality, and any outstanding charges or restrictions related to water and sewerage services.
Environmental searches are conducted to identify potential environmental risks or contamination that may affect the property, this search may include information on contaminated land, landfill sites, flood risk, radon gas, and other environmental hazards.
Coal mining searches may include information on past, present, or future coal mining activities that may affect the property, including coal mining subsidence claims, mine entries, and other mining-related risks.
Chancel repairs liability searches are rarer and typically only conducted for properties located in areas where the potential liability for chancel repairs (an ancient legal liability) still exists.

Land Registry fees
HM Land Registry is a government department responsible for recording and maintaining records of property ownership in England and Wales; Scotland uses the Land Register of Scotland. As part of the conveyancing process, the conveyancer or solicitor may need to register the change of ownership and any new mortgage on the property with the Land Registry. The fees for both registers are charged based on the value of the property and the type of registration required.

Unregistered Property Supplement Fee
Most properties are registered with the Land Registry (covering over 88% of the land mass of England and Wales), however, there are some properties that aren’t registered with them, most likely due to the land or property not being sold since compulsory registration came into effect in 1990.

If a property is unregistered, the conveyancer needs to carry out extra work which can cost between £120-£240.

Stamp duty land tax (SDLT)
Stamp Duty Land Tax (SDLT) is a tax levied by the government on properties sold above a certain threshold. The amount of stamp duty payable depends on the purchase price of the property and other factors, such as whether it is a first-time purchase or a second home. The conveyancer or solicitor is responsible for calculating and submitting the stamp duty payment on behalf of the client.

Bankruptcy search
A bankruptcy search is conducted to check if any of the parties involved in the property transaction, i.e. the buyer or seller, are bankrupt. This search is typically carried out to ensure that the parties involved have the legal capacity to buy or sell the property and that the transaction is legally valid.

Leasehold information pack (LIP)
Leasehold information pack (LIP) fees are charged by the freeholder or managing agent in the case of leasehold properties; the pack is a set of documents that the seller is required to provide to the buyer as part of the conveyancing process. This pack typically includes the lease, service charge information, ground rent details, building insurance, and other relevant information about the leasehold property.

Transfer of title deeds
This fee covers the legal and administrative tasks associated with preparing and executing the transfer of title deeds, including drafting legal documents, obtaining signatures, and registering the transfer with the Land Registry.

Registration of the transfer
This fee is charged by the Land Registry for registering the change of ownership and any new mortgage on the property and it is based on the value of the property and the type of registration required.

How to reduce house conveyancing fees

While conveyancing is a necessary part of buying and selling a house, there are ways to reduce the costs associated.

Compare quotes from different conveyancers to get a good steer on the going market rates so you don’t get overcharged. Keep in mind that the cheapest is not necessarily the best option, in terms of quality and reliability, so it’s important to balance cost with reputation.
Negotiate fees with your chosen conveyancer or solicitor. Some conveyancers may be willing to offer discounts or flexible fee structures, especially if you are referred to them by a friend or family member, or if you have multiple properties to buy or sell.
Scrutinise and understand the fee structure of your chosen conveyancer or solicitor. Some may charge a fixed fee, while others may charge an hourly rate or a percentage of the property value. Understanding the fee structure can help you make informed decisions and potentially negotiate or request specific services to be included or excluded from the fee.
Request a breakdown of disbursements upfront and review them carefully to ensure they are necessary and reasonable. Some disbursements may be optional or can be reduced or waived, depending on the circumstances.
Avoid unnecessary delays and additional fees by being organised and responsive throughout the conveyancing process. Provide all the necessary documentation to your conveyancer promptly and respond to their requests promptly to avoid any additional charges for extra work or delays.
Carefully review the terms and conditions of your conveyancer’s engagement letter or contract to check for any hidden fees or charges that may be added later in the process. Ask your conveyancer to provide a clear breakdown of all fees and charges upfront to avoid surprises later on.
Do your research. Online conveyancing services may offer more competitive rates compared to traditional brick-and-mortar firms. These services typically don’t have a physical presence which can help reduce overhead costs and may result in lower fees. Check around and read reviews to ensure whomever you choose is reputable and reliable.

Tips for choosing a conveyancing solicitor

Choosing a conveyancing solicitor is an important decision as it involves legal and financial aspects of buying or selling a property. Here are some top tips to consider when selecting a conveyancing solicitor:

Look for a conveyancing solicitor who has extensive experience and expertise in handling conveyancing transactions. Check their qualifications, years of experience, and any accreditations they may hold.
Research the solicitor’s reputation and read reviews from previous clients. Look for testimonials on their website or independent review platforms. This can give you insights into their professionalism, communication, responsiveness, and overall client satisfaction.
Enquire about the solicitor’s fee structure and get a detailed breakdown of all fees and charges upfront. Make sure they are transparent about their pricing and there are no hidden fees or charges. Compare their fees with other solicitors to ensure they are competitive and reasonable.
Consider a conveyancing solicitor who has local knowledge and experience; they may have insights into local regulations, property market trends, and potential issues that could arise during the conveyancing process.
Seek recommendations from friends, family, or your real estate agent who have had positive experiences with a conveyancing solicitor. Word-of-mouth referrals can be a reliable way to find a reputable solicitor who has been proven to provide quality services.

Choosing the right solicitor can make all the difference to the speed and stress involved in your sale

Selling your property is a ‘big deal’ and you need a legal expert who will look after your best interests. The conveyancing process can be complex and lengthy and is often the main cause of delays in selling a house.

As a ‘quick sale’ specialist we work with a number of solicitors who know the importance of working quickly whilst still delivering you an excellent service. We can recommend a solicitor from our panel of quick house sale experts at no cost to you.

You are free to choose your own solicitor (and we will make a contribution to their costs) but in our experience, this can add weeks or months to the sale process – particularly if the solicitor you’ve chosen is not a conveyancing expert.

Our house-buying experts will make sure that your house sale progresses in a timescale that suits you, be that 7 or 70 days — you’re in control! Get your offer today.

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

View articles by Chris