Conveyancing is an umbrella term that refers to the legal and administrative work associated with transferring ownership of a property from one party to another. It is undertaken principally by property solicitors who receive instruction once an offer has been made on a property and accepted by a second party. Following the successful offer, solicitors representing the seller and buyer will exchange details and begin the conveyancing process.Homeowners remortgaging their property will also need to find a provider to complete the associated conveyancing process.
Who undertakes conveyancing? Traditionally conveyancing is completed by solicitors acting on behalf of the buyer and seller, all solicitors practising in England and Wales must be registered with the Law Society and are regulated by the Solicitors Regulation Authority (SRA). In recent years ‘conveyancers’ have become more popular – these specialists are licensed and regulated by the Council for Licensed Conveyancers (CLC).
Many conveyancers are solicitors who now choose to specialise in conveyancing only. Homeowners are legally able to undertake conveyancing themselves but the process can be complicated, as well as time consuming. Specialist legal knowledge may be required in more complex cases, such as on leasehold properties. In addition, mortgage lenders are invariably keen to protect their investments and will often insist on professional conveyancing services, as will other parties who may not wish to risk the process falling through. Incorrect conveyancing can also open you up to legal issues, for example over boundaries or planning permission.
Who needs conveyancing? If you are buying, selling or remortgaging a house you will need to undertake conveyancing.
How much does conveyancing cost? Conveyancing fees vary widely depending on the service used (solicitors, online conveyancing or DIY conveyancing) and the price of the property you are selling, buying or remortgaging. Research shows that UK homeowners can expect to pay anything from between £330 to £1050 for conveyancing costs.
What is included in a conveyancing quote? Conveyancing quotes are made up of two distinct costs:
1. Basic Fee This covers the cost of the solicitor or conveyancer’s time and varies depending on the method used to calculate the figure. Some solicitors charge by a fixed-fee, although this is becoming rare. Others charge on a per-hour basis which should be avoided as the costs can mount quickly if there are any irregularities. The most common – and most cost-effective option – is based on a sliding scale depending on the selling or buying price of the property concerned.
If you are selling a leasehold property your basic fee should be higher than if you are purchasing a freehold property as there is extra paperwork involved. Your solicitor should ask you whether the property is freehold or leasehold – if they don’t, be wary. Your basic fee may also increase if you are purchasing a Shared Ownership, new build, Right to Buy, Buy to Let or Help to Buy (ISA) property.
2. Disbursements Disbursements are costs incurred by the solicitor that are passed onto you. These should be similar across all conveyancing quotes as they are fixed charges incurred during the conveyancing process.
Here are the common disbursements and the amount you should expect to pay:
For Buying a Property
Bankruptcy search – [£2 - £4 per person taking out the mortgage] – your mortgage lender will need confirmation you have not been declared bankrupt, and this check is a formality of the pre-completion searches (also known as ‘priority searches’).
Local authority searches – [£100 - £200] – the cost of these will vary depending on which Borough your property resides in. Quotes that do not ask for your postcode will only give an approximate figure. These searches are designed to protect you from council plans that may affect your property in the time after you’ve moved in.
Land registry office copies – [£4 - £8] – a pre-completion search to ensure the vendor owns the property you are attempting to purchase.
Electronic ID Verification- [£2-£18 per person taking out a mortgage] – you will need to give your conveyancer proof of your current address and ID documentation.
Environmental search – [£30 - £35 + VAT] – this checks for ground contamination in close proximity to the property. If contamination is found you may be liable even though you did not cause it.
Water and drainage search – [£30 - £40 + VAT] – this ensures the property is connected to fresh and foul water sewers. The cost will vary between water companies but should not fall too far outside the range given above.
Chancel repair liability search – [£10 + VAT] – if you buy or inherit a property that is located within the parishes of the church you may have to pay a contribution towards the upkeep, so it is worth checking to see if you are liable.
Telegraphic transfer fee – [£25 - £45 + VAT] – this fee is charged by your bank and covers the cost of sending the money used to purchase the property to the seller’s conveyancing provider.
Mortgage handling fee – [£60-£80] – a fee may be charged by your solicitor for dealing with the legal aspects involved in setting up your mortgage.
HMLR final search- [£3-£7] – this is a final search that is carried out just before completion
Land registration fee – [£20 - £910] – this is a fixed cost disbursement that depends on the cost of the property being purchased. Conveyancing quotes should factor in the real cost of the land registration fee.
