What are disbursement conveyancing fees?
Disbursements are the costs your conveyancer pays on your behalf when conducting your sale or purchase.
The amounts are fairly consistent across the conveyancing industry. When getting your conveyancing quote, check whether the total price includes both the conveyancer’s fee and disbursements.
Most of the below fees are classed as disbursements:
Money laundering check fees
The conveyancing industry is a common target for money launderers, enabling them to easily circulate large amounts of illegally-gained money into the legitimate economy.
As part of the conveyancing process, your solicitor will ensure money is coming from legitimate sources. This means you’re legally obliged to provide all the necessary documents to verify your identity. If you’re buying a house, you need to show evidence of your deposit and where your funds came from. If you’re selling a property, your solicitor will check the Land Registry to confirm you’re the homeowner.
The cost of money laundering checks is usually £10 – £20, although if you’re living abroad, you’ll likely have to pay more for further checks.
Bankruptcy search fees
With such large sums of money changing hands, your mortgage lender needs to make sure you haven’t gone bankrupt recently.
Bankruptcy searches cost between £2- £4.
Copy of title deeds
Your conveyancer needs to check the title deeds, namely the legal documents proving that you own a property.
The Land Registry charges for every document which has to be downloaded: if you’re dealing with a leasehold property, then the cost can be upwards of £25.
Carrying out the necessary conveyancing searches, including local, drainage and environmental searches is a crucial part of the house buying process. They’ll flag any potential problems and cost between £250 – £450, although the price may vary depending on the property’s location.
It’s also a good idea to carry out a building survey. The Royal Institute of Chartered Surveyors charges around £250 for a basic Home Condition Report. A Home Buyers Report costs around £400 and a detailed Building Survey costs more than £600, depending on the property size.
Electronic Funds transfer fee
On completion, your conveyancer must make an online funds transfer, and will charge a fee for this. If you’re buying a property, the money’s sent to the seller’s conveyancer, while if you’re selling, the funds go to your lender, redeeming your mortgage, with any remaining balance going back to you.
Land Registry Registration Services
If you’re buying a house you need to pay a Land Registry Registration Services fee, to officially transfer the property into your name. Your conveyancer must pay the following costs when applying through the online portal. However, if your application is complex and cannot be done online, costs will be higher.
|Property value or amount
|Land Registry Registration Services fee
|Up to £80,000
|£80,001 to £100,000
|£100,001 to £200,000
|£200,001 to £500,000
|£500,001 to £1,000,000
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT), or Land Transaction Tax (LTT) in Wales, is a government tax on property purchases over certain price brackets. It’s paid as a lump sum on completion and only applies when purchasing a property. Your conveyancer will calculate how much you owe and include it in their quote if you request this. There’s also a small fee for the paperwork and registration.
If you’re buying a leasehold property, you’ll usually need to cover additional costs as the process is quite complex. For instance, your conveyancer might need a Deed of Covenant, a legal agreement between you and the landowner which sets obligations such as carrying out repair work. The extra costs range from £100 to £1,000, depending on the property.
If you’re selling a leasehold property, you’ll have to cover extra costs for any additional information required from the landlord or management company. This can cost from £100 to over £500.
Remember, it’s always worth checking your conveyancer’s terms and conditions to see if any additional charges apply to you.
Get a personalised conveyancing quote for your move today.