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How much does residential conveyancing cost?

The commercial conveyancing process is an essential element in buying and selling property. However, conveyancing fees are one of the most overlooked expenses.  

Understanding these fees will help you plan your budget and avoid unwanted surprises.  

Here’s an overview of fees, cost factors, and information on budgeting for your residential property purchase. 

 

What are Residential Conveyancing Costs? 

Conveyancing fees cover legal and administrative services relating to residential property transfer for buyers and sellers. The costs typically include professional fees for the solicitor’s time and expertise and disbursements, which the solicitor pays on your behalf.  

Some costs apply to all residential property transactions, while others depend on the property’s location or type. 

Critical conveyancing fees include:  

Professional Fees 

Professional or general legal fees cover the conveyancer’s time, expertise, and management of your transaction. Fixed-fee arrangements are common. However, some solicitors charge by the hour. Most professional fees are subject to VAT, currently 20%. 

Disbursements 

A disbursement is a fee your solicitor pays on your behalf. For residential property transactions, these fees include:  

Search Fees: Crucial for buyers, searches ensure the property is free from issues that could affect its value or utility. Common searches include: 

  • Local Authority Search: Checks planning issues, compliance with building regulations, and any nearby developments. 
  • Environmental and Water Searches: Identify risks like flooding or land contamination, and confirm drainage connections. 
 Land Registry Fees: These costs are required for registering property ownership changes and typically range from £20 to £910, depending on property value. 

Stamp Duty Land Tax (SDLT): SDLT applies to property purchases over £250,000, with rates dependent on the property price. First-time buyers may benefit from SDLT relief. 

Bank Transfer Fees: Solicitors use secure bank transfers for large sums, like deposits. Transfers usually cost between £20-£50. 

Potential Additional Fees 

Leasehold Properties: Buying a leasehold property involves extra work, such as reviewing the lease terms and contacting the freeholder, so it commands slightly higher fees. 
Help to Buy and Shared Ownership: If you’re using schemes like Help to Buy, the additional legal work to satisfy scheme requirements will potentially increase your costs. 

Residential Conveyancing Cost Factors 

Several factors impact the total cost of conveyancing: 

Property Type and Complexity: Freehold transactions are more straightforward than leaseholds, which require more legal checks. Additionally, unregistered properties, new builds, and properties with issues such as boundary disputes will likely need extra work. 
Location: Costs often vary according to the property’s location. Expect conveyancing to be more expensive in high-demand areas like London. 
Value of the Property: Higher-value properties may incur greater Land Registry fees and SDLT costs, particularly for buyers. 
Additional Legal Needs: If your transaction involves complex arrangements, like a gifted deposit or a guarantor, the extra time and checks may increase your fees.  

 Choosing the right solicitor 

Choosing a solicitor with relevant experience can make your residential conveyancing smoother and more cost-effective. Compare quotes from a few conveyancing solicitors and ask questions about potential extra fees and turnaround times.  

Most conveyancers offer a transparent service. However, additional costs can arise unexpectedly. Review terms and ask for a complete fee schedule up front to avoid hidden charges. 

How to Reduce Conveyancing Costs 

Prepare Early: Delays often lead to additional expenses. Having your documentation ready can help reduce the chance of delay fees. 
Negotiate: Some solicitors may negotiate fees for straightforward transactions or if you’re a repeat customer. 
Bundle Services: Using the same conveyancer for both transactions could reduce fees if you’re selling and buying simultaneously. 
Planning your conveyancing fees within your overall budget is wise to avoid stress. First-time buyers, especially, may underestimate these costs. Setting aside funds for the main expenses and budgeting for unexpected fees or delays will help you prepare.
Conveyancing costs are essential to buying or selling property in the UK, but you can manage these expenses effectively with careful planning and informed decisions. By understanding the components of conveyancing fees, choosing the right conveyancer, and asking questions, you’ll be well-prepared to handle the financial aspect of your property transaction. 

Whether you’re a first-time buyer or an experienced seller, staying informed about conveyancing fees will help keep you on budget. 

 

Need expert, cost-effective help with residential conveyancing?  

Toomey Legal offers quality residential property advice at value-driven rates. We deliver our reliable expertise quickly, professionally, and responsively, offering practical solutions at fixed fees with no hidden costs. 

Call now for a quote or fill out the below form with details of your enquiry.