In the cases of some lenders in England and Wales, they will actually cover these fees, but this is only if you go with their chosen solicitor on their panel, which aren’t always necessarily the best price.
Moving house is well known as being a fairly expensive process, isn’t it? You have so much to consider.
Not only are there estate agent fees, possible home improvements, and even the physical cost of being able to move to and furnish your new home, but what about the legal expenses? This is often something that people overlook early on in the process, and therefore it can be a bit of a shock further down the line.
Well, fear not! Because today, we’re sharing our fully inclusive guide covering all legal expenses and other costs when you move home.
The Conveyancing Fees
The first fee we’re going to be covering in regards to legal expenses when moving home today, are the conveyancing fees.
This is the cost that you pay your solicitor for all of the legal work which is associated with buying a property. This includes, but isn’t necessarily limited to:
- Conveyancing, and the transfer of property ownership.
- Checking that all paperwork is on time and in order.
- Checking in with all environmental factors.
- Looking into planning permission.
And any other things that could shock you further down the line.
In the cases of some lenders in England and Wales, they will actually cover these fees, but this is only if you go with their chosen solicitor on their panel, which aren’t always necessarily the best price. In some cases, they might actually just choose to give you cash back when the mortgage has been completed.
Remember that if you do choose to use your own solicitor, this will have to be okayed by your mortgage lender. This is because the solicitor will not only be doing your legal work, but likely theirs, too.
When it comes to legal fees, you can pay anywhere between £500 and £1,500. This should include all of the legal searches that your solicitor has to order and then add onto your final bill.
The final price you are charged by your solicitor will depend on how much your property actually costs, too. It’s likely that you’ll have to pay your solicitor at various points throughout the process of buying, because costs on your behalf will add up over time.
The Run Down
So, with that in mind, we’re going to give you a little run down on the fees and process of paying for your conveyancing:
HOW MUCH WILL IT COST?
The costs of paying for a conveyancer can actually land anywhere between £500, and £1,500.
WHEN DO I PAY THIS CHARGE?
You will usually pay this charge throughout the process itself, and then finalised upon completion.
WHO DO I PAY THIS TO?
You will pay this charge directly to your solicitor.
WILL I HAVE TO PAY THIS FEE NO MATTER WHAT?
In some cases, the lender will pay this for you, but remember this is only if you go through their appointed solicitor, and these aren’t always everyone’s first choice.
CAN I ADD THIS TO MY MORTGAGE, OR WILL I HAVE TO PAY IT UPFRONT?
This charge is usually paid upfront.
It’s that simple!
The Land Registry Fee
It’s important to remember, however, that your solicitor isn’t the only legal fee you will pay throughout this process. You will have to pay the land registry a fee, also.
This is usually a few hundred pounds, and is therefore actually one of the cheapest fees you’re likely to incur legally through the moving house process.
The job of land registry is to register someone’s name to a property. Therefore when you go ahead and buy a property from another person, it’s down to the land registry to put your name on the official documents.
The fee for this will entirely depend on how much your home costs. Properties between £100,000 and £200,000 will cost around £200, and properties worth between £300,00 and £500,000 will cost around £300.
The Stamp Duty Fee
Now, this isn’t relevant to everyone, but finally, some people will have to pay stamp duty to the government.
You’re only charged stamp duty fee if your property is worth £500,000 or more, and you will pay this to your solicitor, who will then transfer it to HM Revenue and Customs. This will take place when the purchase completes.
In Scotland, you don’t pay stamp duty if you’re a first time buyer, or on the first £175,000 of a home.
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