Buying a property is an exciting time. When you’ve found the home of your dreams or even before you start looking for it, call us so we can point you in the right direction. Although it’s usually a straightforward process, timescales can differ depending on the circumstances of the seller or purchaser. Here’s some of the questions we get asked a lot:
How much does it cost to buy my new home?
The average house price in the UK is £232,554 (source UK House Price Index September 2018). Our fees below are based on average property prices, as our fees vary according to the price of a property. Please note that we deal with properties of all values up to £10,000,000.
Our average legal fee to act in the purchase of a property is £617 plus vat, which amounts to £740 inclusive of vat. Our fee will be based on the purchase price of the property and that it will be a fixed fee – our fees for property purchases are not based on hourly rates. This is for the time that we spend and our expertise. It includes acting for a buyer and also their lender if a mortgage is involved – the majority of lenders will instruct us to act for them in relation to your mortgage so another law firm does not have to be involved with consequential additional cost to you. It includes submitting a SDLT return.
You should also be aware that we charge more for dealing with a flat than a house of the same value as transactions involving flats are more time consuming. It doesn't include payments that we make to third parties on your behalf which are commonly referred to as disbursements.
Are there any other potential payments I should be aware of?
Yes, these are called disbursements.The amount of these payments varies from property to property and they're also affected by its location.
They can be significantly more than the ranges given below and they can also occasionally change whilst a transaction is in progress. For example, the Government introduces changes to SDLT when it makes a budget statement and the changes are often immediately effective with little or no opportunity to avoid.
The notice fees are set by the management company/freeholder and we have no control over these charges. We'll notify you of the amounts before they're incurred and will advise you if we become aware of any change. We've listed potential disbursements below so you've got a clear idea of what you might be liable for:
- Search fees: If you're buying a property, we'll carry out various searches against the property for you. The objective is to obtain information for you and to protect your interests. If you take out a mortgage, your lender will expect the same searches to be undertaken to protect their interests. The information that's contained in the searches will help you make a more informed decision about purchasing the property. A full pack of searches will cost on average £300 inclusive of vat, but it can be more in certain areas where there are more searches to undertake (such as mining) and/or the Local Authority search charge is high. If you don't need a mortgage and try to save costs by not having searches. you're taking a risk that may prove costly to you if the searches would have revealed something that would have affected your decision to buy the property or the price you've paid
- Land Registration fee: This is the fee that the Government Land Registry charges to register you as the new owner of the property and is based on the price you pay. A registration fee will always be payable. Note, most properties are already registered in their own individual title and the application is therefore to update that register. However, if the property isn't already registered in its own separate title, the Land Registry charge a higher fee as there's more work to be carried out to create a new register. The fee doubles. Examples of this are new builds and also purchases of a property that has been owned by the current owner from before the date when registration was first necessary: Land Registry Fee calculator
- SDLT: Commonly known as Stamp Duty. This is a tax charged by the Government that has to be paid by us on your behalf if a payment is due. The price you pay is relevant but there are other factors that determine whether there's a liability and the amount. The provisions are complex, but there's an on-line Government calculator that you can use: Gov SDLT calculator
- Notice of transfer fee: This is a fee charged by a third party to register the change in ownership of the property and will usually apply if the property is leasehold. It may also arise if the property is freehold and there's a specific requirement in the Deeds to give notification to a management company or similar. The fee varies depending what the Deeds say and/or what the third party demands. Often the fee is between £50 and £250 plus vat
- Notice of mortgage fee: If you take out a mortgage, then your lender will require that any party that should be notified of the change in ownership is also notified of your lenders interest. This is in addition to the Notice of Transfer fee, but may be the same amount. Again, the fee charged by the third party is usually between £50 and £250 plus vat
- Deed of covenant fee: If the deeds require that you enter into a direct covenant with a third party, then that party may charge a fee for dealing with the Deed. This might, for example, be a covenant by you to pay a service charge. Usually it's between £100 and £250 plus vat
- Certificate of compliance fee: A Certificate of compliance from a third party is sometimes required under the terms of the Deeds, particularly in the case of flats. This might, for example, have been registered so that the third party can ensure that when a property changes hands its requirements are dealt with and that any rent and/or service charge for communal areas has been paid up to date. Again, the fee is usually between £50 and £250 plus vat
Are there any hidden extra costs involved?
When do I have to pay all the fees?
Fees for conveyancing, and other related costs are payable just before completion, but searches are paid for by you up front when you’re ready for us to start them.
If I don’t purchase a property is there a fee?
How long does the conveyancing process take?
Unfortunately, nobody can say for sure how long the process will take – every transaction has its own different circumstances. The length of the chain of properties, the type of transaction and the speed at which other parties involved in the transaction work will all be relevant. Furthermore, if a new mortgage is required by one or more parties involved, that can also cause delay as, generally speaking, mortgages appear to be taking longer than people expect.
For a straightforward purchase or sale transaction, completion should take place within 8-12 weeks of instructing a conveyancer, provided it’s not subject to any major hold ups. However, the longer a chain, the more likely there will be delay; if one party or property causes delay, it will affect all of the transactions in the chain.
Generally speaking, where a flat is involved, rather than a house, the transaction is likely to take longer because of the additional legal work involved.
How does Russell & Russell provide a conveyancing quotation for my purchase?
We always provide a written quotation at the outset of a transaction, based on the information provided to us at that time so that you know where you stand and to ensure that there’s no misunderstanding between us at a later time.
In the case of residential conveyancing, we’re usually able to offer a fixed fee for our time. We’ll quote a fixed fee for the work normally undertaken in a standard case and will include a list of additional fixed fees that we would charge if you require additional work to be undertaken. Examples of this would be arranging a Title Indemnity Policy, Help To Buy ISA, preparing a Trust Deed or dealing with a Deed of Covenant. We may also be prepared to work on a “No Sale No Fee” basis – please ask about this if it’s of interest to you.
We’ll always honour the fixed fee unless the information relied upon by us at the time of the estimate was incorrect, or it subsequently becomes apparent that there’s an issue that will significantly affect the amount of time that has to be spent. In either case, we’ll notify you of any such development before we proceed further.
Examples of circumstances that might change the cost would be if the property is a flat, not a house as you initially informed us. Or, if a lease extension is required or if the ownership is defective and remedial action is needed.
For a free quote and breakdown of related disbursements known at this time please use our quote enquiry form.
In addition to receiving instructions direct from buyers and sellers, we also work alongside brokers, referrers and property agents who refer clients to us. If we have agreed to pay to them a referral fee for recommending us to act for you, then we’ll disclose the amount to you and we’ll pay the amount involved to the referrer out of our fee.
What are the key stages of the conveyancing purchase process?
Once you've had an offer accepted, made a mortgage application (if necessary) and instructed your conveyancer there are several steps which must be completed before you can get the keys and move into your new home. The main stages are:
- You instruct your conveyancer and the usual Identity and Anti Money Laundering checks are undertaken
- A Contract pack is requested and then received from the seller’s conveyancer. It's then checked by your conveyancer and any pre-contract enquiries are raised
- The required conveyancing searches and ownership checks are carried out. These can be undertaken whilst you have your survey carried out and you're progressing your mortgage application
- Pre-contract enquiries are answered by the seller’s conveyancer
- You receive a written offer of mortgage and your lender sends a copy to us with details of its legal requirements
- Your conveyancer reviews the pre-contact enquiry answers, the results of any surveys and the mortgage documents and reports to you on the Contract and property generally so that you can raise any issues that you might have
- We send you a full completion statement
- Once you're happy with everything you'll be asked to pay your deposit to us in preparation for the exchange of contracts
- A completion date is agreed between you and the seller and the contracts are exchanged by the parties’ conveyancers during a telephone conversation. Once contracts are exchanged you're legally obliged to go through with the purchase on the agreed completion date. You should insure the property from this point unless it is a flat insured under a joint policy
- Your conveyancer will carry out final pre-completion searches and obtain the balance of any monies due from you together with any mortgage funds from your lender
- On the day of completion we send the balance purchase monies to the bank of the sellers’ conveyancer. Once the transaction is completed you'll officially be the owners of your new home and will be able to collect the keys at a time and place as agreed with the seller
- Once the purchase is complete your conveyancer will register the property in your name and you'll receive a copy of the title and proof of ownership from The Land Registry
Will I have a direct contact number and email for my conveyancer?
Can I speak to someone out of office hours?
What is Stamp Duty Land Tax?
Stamp Duty Land Tax – SDLT – is a tax on land that is payable to HM Revenue and Customs. You can find out how much stamp duty is to be paid on a property by visiting the government website.