When using a solicitor for your property transaction you may notice ‘no completion, no fee, minus disbursements’ being advertised. You are probably wondering what disbursements are?
Conveyancing disbursements are the payments or taxes that need to be made to a third party by your solicitor as part of the home buying process. Disbursements are not part of your solicitors handling fee, they are separate fees that need to be paid upfront at the start of the conveyancing process.
They include:
Stamp Duty Land Tax
Costs dependent on property value.
Stamp Duty Land Tax (SDLT) is paid to the government when you purchase land or property valued at over a certain amount in England. Stamp duty is calculated based on the value of your home and there are certain discounts for first time buyers.
Local Authority Searches
£100 – £200 + VAT
Local Authority Searches are in place to check for information such as planning applications, road schemes, land contamination, development restrictions and enforcement actions. Read our guide on Local Authority Searches for more information.
Water and Drainage Search
£66 + VAT
A drainage search is conducted by the local water board to check that the property is connected to fresh and foul water sewers. It also reveals information about:
- The connections to the mains water.
- The connections to the mains sewer (if applicable).
- The location of water supplies and sewers.
- How the property is charged for water and wastewater services, i.e. if it is measured by a meter, unmeasured or charged on a rateable value.
Environmental search
£61 + VAT
Environmental searches identify potential issues with flooding, subsidence, landslides and land contamination.
HM Land Registry Fees
From £20 for property valued up to £80K, up to £135 for property purchased between £200,001- £500K
Each land and property transaction in England must be registered with the HM Land Registry. There is a cost in place by the government for registering a change in ownership of the property. The cost is dependent upon the value of the property or the mortgage attached to it.
Chancel Indemnity Insurance
£15 – £20
A search for chancel repair liability is done to check that the home that you’re purchasing is not subject to liability to pay for the maintenance and repairs of the local church. This is an ancient law that dates back to the 16th century when Henry VIII established the Church of England.
If the property is found to be liable to pay for repairs to the local parish church, the repair bills can run into hundreds of thousands of pounds.
Bankruptcy Search
£2 per person
Your solicitor will need to carry out a bankruptcy search on all named persons on the mortgage. This is so that your mortgage lender knows that nobody named on the contract has been declared bankrupt.
Land Registry Search
£3
This search is carried out before completion and ensures that no applications can be made to alter the title register before an application can be made to register your ownership.
Bank transfer fee
£25 + VAT
This is the cost charged by your bank to cover the cost of sending over the money used to purchase the property to the seller’s solicitor.
Transferring Ownership
£20 – £540
When transferring ownership you are required to pay the Land Registry a fee for updating the title register.
Anti-money laundering checks
£20 + VAT
Your solicitor will complete these checks to verify your identity. If you’re living abroad or are a foreign national the cost of the checks may cost more.
Help to Buy supplement
£200 – £300
Purchasing a property through a Help to Buy scheme involves additional legal work that will incur additional costs.
Help to Buy ISA
£50 + VAT
If you are using a Help to Buy ISA towards your deposit, your solicitor will have to do additional work to redeem the bonus from the government. The amount is capped at £50 + VAT.