How Much Are UK Conveyancing Fees In 2023?

All the expenses related to the house purchase until the ownership transfer is over, come under conveyancing fees.

In the UK, conveyancing fees could be a few hundred to thousands of pounds. Recent studies have pointed out that conveyancing fees have increased significantly in the UK in the past few years.

So, this article provides updates on the UK conveyancing fees in 2023. This will give you a heads-up of what to expect if you move to a new home this year.

Conveyancing Fees

Conveyancing fees are the amount you pay to make a house purchase legal. The legal side of a house purchase will only be over properly if you spend the conveyancing fees for the right things.

Conveyancing fees are paid to a solicitor or conveyancer during the purchase. A conveyancer has expertise in the legal aspects of house sale and purchase. A conveyancer will be available throughout the sales process to assist the seller and the buyer.

Although the seller pays conveyancing fees mostly, there are instances where the buyer should also pay a part of it. Conveyancing costs are determined based on the total value of the property. On average, conveyancing fees can be anywhere between £500 to £2500, without the disbursements.

The disbursements can cost several hundred pounds extra. The average cost of disbursements in the UK in 2023 is £700 or more.

Conveyancing fees can be divided into two parts.

1. Legal Fees

Legal fees cover the total fees of the conveyancer or solicitor.
It is to pay for their time and service.
Legal fees can be based on a fixed or hourly rate, depending on the conveyancer.

2. Disbursements

Disbursements are the amount spent on third-party service providers.
The solicitor deals with the hiring of such services. Thus, the solicitor distributes the amount for various services they have hired for the house.
If the case or sales project is relatively complex, the disbursements can also increase.

Find out how you can reduce these fees here.

Total Conveyancing Fees in the UK 2023

Buying a house in the UK can cost you at least £500 as a conveyance fee, excluding disbursements. The maximum amount can be a few thousand pounds. The disbursements can be about £700 or more.

Conveyancing fees vary widely based on the total value of the property, the location of the property, and various checks that may be needed for the sale. You must pay about £300 more if the property is leasehold.

Numerous online tools and trusted websites are available to calculate the conveyancing fee instantly. You can use such websites and tools to get a personalized quote on your property’s conveyancing fees.

Legal Fee

As mentioned before, legal fees consist of the fees paid to avail of the services and time of the conveyancer. The legal fees can vary widely depending on various factors. Some of those important factors are as follows.

Value of the property
Whether the property is freehold or leasehold
Online or offline conveyancing
Conveyancer’s location
Whether a licensed conveyancer or a solicitor
Shared ownership or right to buy or help to buy
Lease extension, remortgage, transfer equity
Cash buying or not
Whether additional searches are necessary

Following is a list of the average legal fees you may pay on various properties.

Selling leasehold property - £1,420
Buying leasehold property - £1,490
Selling freehold property - £1,270
Buying freehold property - £1,320

Reduce your legal fees here

Disbursements

Conveyance disbursements are additional costs the seller or buyer may pay to hire third-party services. Disbursements contain fixed and relative prices. Fixed price services include Land Registry searching services and the like. Relative prices include stamp duty and the like.

The main disbursements are described as follows.

1. Searches

Conveyancing searches apply to buyers.
This includes all kinds of local searches to determine whether any upcoming projects or developments are nearby.
The major searches include Local Authority Search, Water and Drainage Search, Environmental Search, etc.
Conveyancing searches can cost between £250 and £450.

2. Anti-money laundering checks

Anti-money laundering checks are essential to prove that the purchasing money is legal.
These checks validate the buyer’s identity.
These checks are used to avoid the use of any illegal money.
An online company will be carrying out this verification.
You may have to pay extra for this process if you are a foreign national.
Anti-money laundering checks can cost between £5 and £20.

3. Property Fraud

Property fraud check is to avoid spending money on a non-existing legal company.
This check ensures you spend money on a real lawyer and company.
This is a very common check and costs only £10.

4. Title Deeds

You will have to spend some amount on getting a copy of the property's title deeds.
The amount has to be paid to the Land Registry.
Leasehold properties have higher title deeds fees than freehold properties.
It is only applicable to the sellers.
The title deed copy will have a property plan and a property register.
Title deeds can cost around £6.

5. Bank transfer fee

You must pay a bank transfer fee if you are transferring over £60,000.
If you redeem your mortgage by selling the property, you must pay another amount as a bank transfer fee.
The total bank transfer fee is around £40.
The bank transfer fee can change depending on the total value of the property and the amount you are transferring.

6. Transferring ownership

The transferring ownership fee is for changing the name on the ownership documents to the buyer.
This fee has to be paid at the Land Registry.
Transferring ownership can cost between £200 and £300.

7. Stamp duty land tax

For properties worth over £125,000, the buyer has to pay a stamp duty land tax.
The stamp duty costs vary as it is based on a sliding slab.
There is a change in stamp duty estimation for first-time buyers.

8. Unregistered property supplement fee

It is essential for selling property to be registered with the HM Land Registry.
If your property has no Land Registration, you must pay an additional amount as a supplement fee.
The conveyancer will have to work extra for such unregistered properties.
The Unregistered Property Supplement Fee usually costs between £120 and £240.

9. Help to Buy supplement

Properties in the Help to Buy scheme are associated with some extra-legal work.
Buyers of such properties usually have to pay a supplement fee to take care of this additional supplement fee.
Help to Buy Supplement fee costs between £200 and £300.

10. Gifted deposits

This fee applies to people who have received financial help to deposit the new home.
It is essential to prove that the money you received was from legitimate sources or persons.
You will usually have to pay around £100 for checking gifted deposits.
You may also have to pay an insurance sum to the said money, which can cost around £200.

11. Bankruptcy check

A bankruptcy check is applicable for buyers.
This is exclusively done for buyers availing mortgage.
This is to verify whether the buyer could go bankrupt soon.
Generally, it costs around £3 on average.

Reduce disbursement fees here

Factors that Influence Conveyancing Fees

The total amount that you pay as conveyancing fees in the UK is influenced by several factors. Some of them are as follows:

The complication of the purchase or sale is directly proportional to the conveyancing fees. If the sale is relatively more complicated, you will have to pay more money as the conveyancing fees.

Conveyancing fees also depend on whether the property is leasehold or freehold. Leasehold property sales can take more time and effort; thus, the conveyance fees would also be higher.
If you sell and buy simultaneously, the conveyance fee will be higher. You must pay for both transactions, which would be a reasonably high sum.

Fixed Fee Conveyancing

It was mentioned before that the conveyancing fee can be fixed or varying. Conveyancers usually charge their fees in a fixed form or a varying form. Fixed fee conveyancing is when the conveyancer charges only a fixed amount as the fee.

The conveyancer will discuss this fixed fee with you before the sale, and you will not have to pay any extra money other than the fixed fee. This conveyancing is more convenient to the seller/buyer because they will get an estimate of what they might have to spend for the conveyancing process before the process itself.

So, you will not get any unexpected bills or fees that could cause you practical difficulties. Getting a solicitor who functions on a fixed fee conveyancing is advisable. It is also essential to note that the disbursements are not included in this fixed fee. You will have to pay the disbursements separately.

Conveyancing Tasks

It is essential to understand what conveyancing fees cover all tasks. It helps you check whether your solicitor completes all the tasks within the stipulated conveyancing fees. The major conveyancing tasks are as follows.

Drafting the sales contracts.
Taking care of various property searches and handling all the associated paperwork.
Liaising with the seller’s/ buyer’s solicitor.
Contacting the mortgage lender and taking care of the mortgage documents.
Checking all the legal aspects of the sale/purchase.
Providing proper responses to the seller/buyer.
Contract exchange.
Safe transfer of funds.
Completing the sales and finishing all the related paperwork.
Taking care of post-sales documents and paperwork.

Paying Conveyance Fees

Many buyers/sellers may be confused about when to pay the conveyancing fees. Here is everything about it.

If you are a buyer, you must pay the conveyancing fee for searches upfront. The responsible authority will only proceed with the searches if they are paid the fee entirely.
If you are a seller, you only have to pay a small amount as an upfront conveyancing fee. You must pay the rest during the process and once the sale is complete.
You only have to pay the stamp duty and land registry fees after completing the sales.

Additional Costs

Along with disbursements, several other additional costs are not covered under the conveyancing fees. Some of them are mentioned below.

Energy Performance Certificate
Estate Agency Fees
Deposit for New Property
Mortgage Arrangement Fee
Mortgage Broker’s Fee
Home Valuation Survey Fee

Finding a Conveyancing Solicitor

Conveyancing can be highly complex if you are not with the right solicitor or conveyancer. Many reports have been on subpar conveyancers charging heavy fees and causing much trouble with the sellers/buyers. So, finding the right solicitor for managing your conveyancing process is crucial.

Most of the time, your estate agent may recommend a conveyancer. It may seem convenient. But it is advisable to look for other options before choosing the recommended one. The estate agent would probably get a commission from the recommended solicitor. So, you must compare various solicitors to find the best deal.

Online conveyancing is a popular option that you can consider. But before proceeding online to find a solicitor, you must understand the concept of online conveyancing very well. Because online and offline conveyancing services vary significantly. You must ensure that the online conveyancer will properly address your concerns.

If you are not well versed in the conveyancing process or the location, finding a registered solicitor from a local professional body is advisable. This would ensure that you are getting the service of a trustworthy conveyancer.

Comparing quotes from different solicitors is the most effective way to select a conveyancer. Many online services are available that compare quotes from multiple providers. You will also get access to a rating of the quotes based on customer feedback.

Above all, you must spend time interacting with your solicitor and the firm he represents to be extremely sure of their credibility. You can always ask for details of their previous deals and raise all your concerns regarding the conveyancing process.

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