July 24, 2013 | Posted in:Conveyancing
When you are looking for a conveyancer you need to shop around. This is because each firm has their own set fees and there is no set fee industry standard. In order to compare house conveyancing costs you will need to get an estimate from each conveyancer. When doing this make sure that you get a full breakdown of costs including the disbursements. If you do not have time to do this you can use our comparison site. Within seconds you will be shown all the conveyancers in your area with a full breakdown of every cost involved.
Each conveyance firm has different costs which they charge. When you are purchasing a house a number of them will not apply. Every property transaction is different which means that these are just an estimate of house conveyance fees. Below is a guide to help you understand the costs involved in conveyancing.
Cost of London Conveyancing
- £300,000 purchase price
- Average: £475 + £300 for disbursements
- Cheap: £380 + £300 for disbursements
Cost for Outside of London Conveyancing
- £170,000 purchase price
- Average: £440 + £220 for disbursements
- Cheap: £365 + 205 for disbursements
If you are purchasing and selling a property at the same time it will add an additional cost.
How to Reduce the Cost of House Conveyancing
A solicitor and conveyancer do completely different jobs. However a solicitor is able to carry out conveyance work as well as practice all other legal work. A conveyancer can only practice in property law and are specialists in this subject. Solicitors in general tend to be more expensive than using a conveyance firm. By using a conveyancer you can save money.
Online House Conveyancing
One way to keep the cost of conveyancing down is to use an online company. The services on offer are virtually the same as a traditional high street firm. They can charge less because they can keep their overheads down by not having a high street presence. One negative is many do not have an office in which you can have face to face meetings with.
When deciding on a conveyancer, make sure that the service that they are offering you in a no sale, no fee guarantee. This service means if the transaction was to fall through the solicitor would not charge a fee.
With house conveyancing you be able to get quotes fees of charge in seconds. You will be able to read each individuals break down in costs and services. We have thousands of online and high street property solicitors for you to be able to compare. Our comparison software will narrow your options down to the best local firms. What makes it even better is that you can read genuine customer feedback about each of the companies.
The below shows a list of the costs associated with mortgages:
Valuation Fee: This is required so the lender can get a valuation on the property by a register surveyor. This is carried out so the lender can assess if the loan is at the correct level. If the property is down valued by the surveyor the lender will not lend the loan at the value requested.
Application Fee: This is charged by the lender to process the paperwork of the loan application.
Mortgage Insurance: When the loan amount is a certain percentage above the valuation the lender may require you to take out insurance. The insurance offer the lender protection against a default on the property, once sold is less than the outstanding amount on the loan. This premium is paid once and the cost is worked out on the valuation ratio of the loan.
One additional cost which you should consider is building insurance. When using a mortgage the lender could require you to take out buildings insurance. If they do they will require a copy of the insurance policy with it detailing themselves as mortgagee. You will have to present this before they will issue the funds.
You are liable for the property once the settlement has been issued. This needs to be taken out prior to the completion date. If taking out a mortgage you should look at take one out as soon as possible. That will enable you to get a copy of this to the lender before the completion date. The money will be issued once they are satisfied with the policy and it covers all their requirements.
The amount that the insurance will cost is dependent on a number of factors. These include; age, location, value, size and what the property building material is. One element worth covering in the policy is “Replacement Cover”. This will cover the cost of having to reinstate the house to its condition originally. “Indemnity Cover” is more extensive and as well as reinstatement it also takes deprecation into account.
Your mortgage broker or bank will be able to sort insurance out for you. They will be able to get you expert advice on what are right for you and the property. Mortgage lenders may have conditions that you have to use a certain insurance policy in order to lend money. You could save money by using a comparison website like us.
Water, electric and council tax are settled on the day of completion. It is the responsibility of the new owner to start paying those bills from the day they move in.
Council Tax: This is worked out for the whole financial year and can be paid monthly or yearly. If you pay for the full year in one lump sum you can get a discount.
Water rates: This is paid each quarter and you can get a discount for paying the full quarter in one. The buyer is only responsible to pay the rates from when they moved in.
Electric: This is paid each quarter and you can save money by setting up a direct deposit with most electric companies. It is your responsibility to speak with the relevant electric supply once you have completed on the property.
Telephone: If you are selling and moving you will have to speak with your phone company and asked them to move your services to the new property. When moving into a property and you do not have an existing supplier you will have to set up an account with one.
Removal Costs: The amount charged by a removal company will depend on volume of goods transported and distance travelled. If you need a packing service provided, this will cost you more.
Each case will be different and have varying costs attached to them. In order to check the full costs involved your conveyance will be able to calculate these for you. It will then be possible for you to create a budget to meet these costs.
Solicitor Conveyancing Charges
Conveyancing can seem very complicated if you are new to buying and selling a property. In order to exchange contract you will incur costs known as conveyance fees. When re-mortgaging a property the same will apply.
These solicitor conveyancing charges are for the work carried out. The amount charged is associated to the extent of work needed for the ownership transfer. You can use solicitors which charge an hourly rate or a fixed rate, no sale no fee. The best option is the later as you do not risk any of your money if the sale does not complete and no surprises.
As well as charging you for all the paperwork completed and sent off you will have other costs which they will charge you for. These include giving you advice on a number of items. For example, defining legal contacts, home information packs along with mortgage terms and deeds. If they need to refine the contacts, a cost will be charged. Along with a cost for negotiating and communicating with the other party solicitor involved.
Money Saving Tips
If you have had a HIP carried out you should keep it safe with all other relevant documents for the home ownership. This will help you not have to have unnecessary searches that increase the costs dramatically.
When you speak with a surveyor about instructing them always negotiate a fixed no sale no fee contract. Hourly rates can rocket if you encumber any major problems. Certain times there will be disbursement fees which could go up but overall it will be cheaper.
Is a freehold property more expensive to do conveyancing work on?
Freehold property is generally less complicated than buying a leasehold property. There are restrictions and condition in every leasehold contract which the solicitor must go through. This is why conveyancers charge more for carrying out work on leasehold. By avoiding purchasing leasehold property you can save money on solicitor costs.
Compare House Conveyancing Costs
It is important to shop around when looking for a property solicitor. The best way to do this is to get a full breakdown of costs from a number of firms. You can then compare house conveyancing costs to see which is best. It is a good idea to check national as well as local conveyancers as they can be cheaper. They are able to reduce their fees by been an online nationwide conveyance firm.
Always read in full the terms and conditions of the contact. When getting quotes make sure that they give a full itemize cost including disbursements. There are a number of firms who try to mislead consumer by hiding fees. Agreeing a fixed fee contact which has a no sale, no fee agreement is the best way forward.
Can you do the conveyancing yourself to save money?
It is possible to carry out the conveyance yourself. If you are not qualified in the subject this is going to be time-consuming and a daunting task. If you are up for the challenge you can be successful. You will have to read extensively on the subject and have the time to be able to learn it.
You can find a number of resources online as well as books covering how to do it. You will have to do this with care as one big slip up could end up costing you a fortune. By employing a conveyancing solicitor you have the peace of mind that you can sue them should things go wrong.
Once the contacts have exchanged do not try to pull out of the deal. The contact you signed is a legally binding one and you would be subject to financial penalties and court action. The exchange money is very unlikely to be refunded.