What are conveyancing fees ?
Conveyancing is the legal transfer of title of property from one person to another and conveyancing fees are charged by conveyancing solicitors. These solicitors facilitate the changeover of ownership between buyer and vendor. So put simply, conveyancing fees cover the legal expenses of moving house and the fees charged by solicitors for their conveyancing services.
These fees can be broken down into two main areas, which are solicitor’s fees and disbursements.
Solicitor’s fees – these are simply the fees charged by your solicitors for their time and their essential expertise.
Disbursements – these are the items that your conveyancing solicitor must pay on your behalf to third parties. Disbursements are usually payable whether or not your solicitor offers a no sale no fees service.
What are disbursements ?
Disbursements can be broken down into various individual items and there are a number of standard disbursements that are involved when you are selling a property, for freehold property and for leasehold property:
Freehold property
Official copies – the pre-contract package that your solicitor sends to the buyer’s solicitor must contain up to date official copies of the freehold Title Register and Land Registry filed plan. These documents prove that you own the property and will show any legal Notices or Charges against the property.
Official copies of deeds – if you do not possess all the deeds for your property you may have to show official copies of Leases, Transfers, Conveyances or other deeds you may have.
Estate agents fees – fees to an estate agent should be paid at the completion of your sale, if you use an estate agent that is. These fees are usually a percentage of the sale price and your conveyancing solicitor will usually pay the estate agents fees from your sale proceeds.
Energy Performance Certificate – an Energy Performance Certificate is a legal requirement and must be obtained within 28 days of your home being put on the market.
Telegraphic transfer fees – if you require the proceeds of your sale to be transferred to you bank you will have to pay telegraphic transfer fees, which relate to bank charges for the transfer of funds.
Leasehold property
Official copies – for the sale of leasehold properties you must provide the leasehold and freehold title, plus those that relate to any intermediary landlords.
Managing Agent’s pack – the buyer of a leasehold property will expect a Managing Agent’s pack, containing property information, such as major works, ground rent, accounts information and such.
Landlord’s fees – you may be expected to pay the costs associated with a notice of Assignment if one is necessary. This may include landlord’s legal fees.
What conveyancing fees should you expect ?
Many conveyancing firms have websites which have an online conveyancing fees calculator, which will give you a good idea of the fees you can expect to be responsible for. They will usually include all the disbursements that would be involved in your sale, but it is important to make sure that they do. A few companies try to hide some of the disbursements in order to make their fees look cheaper, so check an itemised breakdown of all the items that you will have to pay for.
Here is a brief breakdown of the conveyancing fees you should expect:
Freehold properties:
Official copies – £16 plus VAT
Official copies of deeds – £10 to £20 plus VAT
Estate agents fees – often a percentage of sale price but this can vary
Energy Performance Certificate – £40 plus VAT
Telegraphic transfer fees – £35 plus VAT
Leasehold property
Official copies – £16 plus VAT
Managing Agent’s Pack – £200-£280 plus VAT
Landlord’s fees – anywhere from £150 to £500 plus VAT
How to pay conveyancing fees and disbursements
It is common for you to have to make a payment before the sale of your home to cover initial items such as a managing Agent’s pack. On the completion of your sale the remaining disbursements will be paid for with the sale proceeds and your solicitor will often take their fees at this stage too.