When a property is bought or sold in the UK, the legal process for this is called Conveyancing. The amount of work involved and the total cost of the Conveyancing process will vary depending on a number of factors.
Regardless of this, selling and buying property is always an expensive task, with the estimated average cost of moving currently sitting at around £8,500. There are several costs that need to be budgeted for when moving home, in addition to the cost of the property itself (if you’re buying). We outline the most common costs that you might encounter during the Conveyancing process.
Average Conveyancing Fees 2017
When buying or selling your home, you will need to instruct a Conveyancing Solicitor or a Conveyancer to take care of the legal aspects of the transaction. Currently, the average cost for Conveyancing in the UK is £850 - £1,500. It’s best practice to shop around and to compare several like-for-like Conveyancing quotes before instructing a Conveyancer or Conveyancing Solicitor.
With Co-op Legal Services, all Conveyancing quotes are fixed-cost and include a No Sale No Fee guarantee. Your free online Conveyancing quote will include a full breakdown of what’s included in the price. Once you have been provided with a written quote for the agreed work, that price will not change.
Another cost that should be budgeted for is a removals company or vehicle hire to transport all of your belongings. The price for removals can vary drastically. This will depend on the service you want (if you’re just hiring a van and doing all the leg work yourself it will be a lot cheaper than if a company does everything for you), how much stuff you’re moving and the distance that it needs to travel. On the lower end of the scale, it could be a couple of hundred pounds and on the higher end it could run into the thousands.
Additional Costs When Selling a Property
When you sell a property, unless you are able to find a buyer privately, then you will probably want to instruct an estate agent to market the property for you. Estate agents fees are usually quite substantial, with the average high street agent charging 1% - 3% +VAT. There are also some estate agents that provide fixed fee services.
You may also need to consider other potential costs, such as producing an energy certificate for the property or paying to dispose of old appliances that you won’t be taking with you.
See our 10 Step Guide to Selling a Property.
Additional Costs When Buying a Property
Buying a new home will incur more costs than selling, because a lot of additional tasks will need to be carried out. The purpose of this is to ensure that you (and your lender, if you’re buying with a mortgage) have all the information needed before you commit to buying the property.
See our 8 Step Guide to Buying a Property.
If you are buying with the help of a mortgage, your lender will insist that a valuation survey is carried out on the property. You can opt for a more comprehensive building survey to be carried out in addition, but this will of course cost more.
The cost for the additional tasks that will be arranged by your Conveyancer when buying a home are called Disbursements. These are costs that need to be paid to third parties, and can include:
- Searches – Searches by local authorities, the environment agency and utility companies will need to be carried out to flag up any potential issues such as planning consent, the history of the land, sewerage infrastructure and highlight any potential flooding risks.
- Stamp Duty Land Tax – This is tax that’s payable on property purchases when the property is worth more than the minimum threshold. For more information on Stamp Duty Land Tax, visit the Gov.uk website.
- Land Registry Fees – When a property changes hands, this needs to be registered by the Land Registry. The fee for this varies depending on the value of the property but can range from £20 to £910.
How Long Does Conveyancing Take?
Usually Conveyancing will take around 8-12 weeks, but this can be significantly longer (or shorter) depending on the circumstances.
There are often a significant number of people involved in a property transaction, such as Conveyancing Solicitors, mortgage lenders, local authorities, etc. If you are part of a long chain of transactions, then any delay further down the chain will cause a delay to your own transaction. If the chain is short then this can often result in the Conveyancing process being quicker to complete.