Monthly Archives: February 2016

Solicitors fees for house buying: Things you need to know

solicitors fees for house buyingSolicitors fees are a part of the conveyancing quote that you get from conveyancing firms that offer legal assistance during your purchase of a house. When you are buying a house, you will most likely refer to a residential conveyancing firm with good experience in the area you are moving to. Solicitors fees for house buying can range from around £500 in areas like London and lower in other towns and borough in England or Wales. Fixed solicitor fees over tasks based rates are most recommended because there is much less chance you’ll be additionally charged. Look for these things on conveyancing quotes while choosing a solicitor.

“No completion, no fee” incentive

Most solicitors who offer “fixed conveyancing fees” also offer “no completion, no fee” incentive which means if the purchase of the house doesn’t go through, the legal fee is withdrawn and you don’t have to pay for the service. While this is a great incentive for the buyer, it also makes the solicitor work carefully to make sure the purchase goes through. The work is much more dedicated as if the conveyancing isn’t successful, they will not get paid.

Conveyancing comparison sites

Conveyancing solicitor’s fees differ from firm to firm. As you look through different conveyancing comparison sites, you’ll get multiple rates through different conveyancing firms willing to help you with the case. Most often the conveyancing quote from these firm distinctly includes basic solicitor’s fee. The basic solicitor fee may or may not include the additional VAT. Then there are the disbursement fees to be paid for tasks like Land Registry Office copies, Telegraphic transfers, searches and others.

Low cost or Experienced

Choosing a cost effective solicitor is often what people look for. But making sure the service is regarded well by past clients make those solicitors a better choice. You have to choose experience, and quality over the lowest solicitor’s fee while looking through conveyancing quotes. You would not want to be misguided to choosing a solicitor just based on the lowest fees.

Having years of experience with working with a local authority, lenders, and brokers. These will help increase the speed of conveyancing in the lowest time possible. While using an online conveyancing solicitor may reduce solicitor fees and other extra costs, having a dedicated conveyancer will only make it more convenient and easy.

Advertised rates Vs real rates

You also have to be careful with advertised conveyancing quotes and their solicitor’s fees as they may not include a few charges to make it seem like a bargain for the visitor. Things like legal work dealing with the mortgage may not be included in the advertised online quote. Also, often solicitors without accreditation from the Conveyancing Quality Scheme (CQS) by the Law Society tend to charge low solicitor fees. But CQS accreditation means they work with higher standards for the benefit of the client. This can be verified from the Law Society’s official site.

You may be surprised to know that there is often no correlation between expensive solicitor fees and quality service. So it’s vital to carry out your own research and look for reviews from previous clients online and offline to make sure you get a good quality conveyancing solicitor for buying your new house.

Conveyancing solicitor buying house fees and extras

Solicitor buying house feesBuying a house involves a ton of paperwork, verifying the ownership, transfer of legal documents, filling out tax and land registry request forms. This all makes buying a house much more stressful than say selling a house or a property. When you’d buy a home you’d want to make sure your investment is going to a right cause and you wouldn’t have to regret it later. Most of the residential conveyancing in England and Wales are performed by solicitors or licensed conveyancers. When you use a solicitor buying house fees may be slightly higher than rates offered by licensed conveyancers. Solicitors can offer your legal advice and support while licensed conveyancers merely follow standard procedures of conveyancing.

While looking into conveyancing of buying a house, you have to look into the complexity of the case. If the house you’re buying is owned by a single or multiple owners and if the house is freehold or leasehold. If you are obtaining a mortgage to buy the home and other factors. These add up to the complexity of the conveyancing and solicitors charge additional fees for extra services they have to complete during the conveyancing process.

Here is a list of fees you are likely to find on a conveyancing quote:

Basic Solicitor service Fee:

This amounts to the basic service charge for the solicitor for their professional help. This depends on the complexity of the case and also according to the company you work with.

Land Registry fees:

The fee is also referred as Land Registry Office copies which are required for the validation of the ownership of the house by the seller. Also called priority searches performed before completion of the conveyancing.

Local authority searches:

Before signing the contract for completion, a various number of searches are performed on the house to check its status and integrity. Local authority searches charges defer from place to place in England. While some conveyancing quote gives an estimation, you should look for conveyancing quote which asks for a zip code for accurate rates.

Other searches:

These searches depend on the requirement while they may be optional they are performed to make sure that the house is free from any surprises for the buyer. They include drainage search, Chancel repair liability search, environmental search and location specific searches

Land Registration Fees:

Once you’ve acquired the house, you need to pay for the Land Registration fee which is a set fee scale based on the agreed price of the house you’re buying.

Telegraphic Transfer Fee:

The cost the bank charges you to send money to the seller’s conveyancer after the completion of the conveyancing.

Stamp duty tax:

As a new owner of the house, you’ll now have to pay tax for your house and property. It’s also on a set scale based on the price of the house.

While you skim through the conveyancing quotes, you have to look out for these items. Some conveyancer will not include them with the solicitor house buying fees and will charge you additionally later. This will create a lot of stress during the conveyancing. So it’s a good choice to personally contact them before you start instructing a solicitor.

Buying a house? Solicitor’s fees average in England

Buying a house solicitors fees averageWhen you are buying a house, it’s often very important that you choose a proper solicitor to reduce the stress related to buying a house. But while solicitors are a great way to handle conveyancing, they have a cost for using their time and legal expertise on the subject. While you’re buying a house, solicitors fees average anywhere from £300 to £500 or more depending on which location you buying a house in England and Wales.

They are likely a few factors that affect the solicitor fees when you are buying a house:

Agreed Purchase price:

The solicitor charges are related to the price of the property that you are buying. This is the first factor that affects the solicitor’s fees in conveyancing. For an average estimate, for a freehold property on Liverpool Road, London with an asking price of £100,000, a solicitor may ask around £500 excluding the disbursement fees. That is if you are buying the house without any mortgage. But London is an expensive place so the solicitor fees are quite expensive as well. For a similar house in Nottingham, it can be around £300.

Tenure of the house (Freehold/Leasehold):

When the owner completely owns the house and is free to sell it if he chooses, it’s a freehold property. Here the conveyancing solicitor doesn’t have to go through a lot of documents to validate the ownership so the fees will also be less. When the house or the property is on leasehold, there are different requirements that the solicitor has to work through. This increases the complexity of the conveyancing process increasing the cost of the solicitor fees.

Obtaining a mortgage?

If you are obtaining a mortgage from a bank or any other financial institution, then this creates more steps to go through. The bank may evaluate the house you are buying or your current assets to check if you can pay back the mortgage. If you are unable to pay the mortgage in time, the house can be repossessed.

Shared ownership of the property

There are times when the house you are going to acquire is a family property and or is a building with shared ownership. This means there’s more work needed to be done for the transfer of the legal ownership by the conveyancing solicitor. That means more tedious work for the solicitor and that resolves to additional solicitor fees. A few conveyancing comparison site allow you to enter the ownership detail to give you a more accurate conveyancing quotes from the firms.<

The above-listed factors most often are the ones that affect solicitor’s fees while buying a house. Other factors include “if you are a first-time buyer”, “new or old build property”, “if the house is being bought with Government’s Right to Buy scheme”.

With all things considered you have to make sure that every service is accounted for including the solicitor fee before you start instructing. Some solicitor may charge additional “Professional indemnity” charges which are optional and should have already been included in the basic solicitor fee. Getting a fixed rate conveyancing quote is very recommended so that additional fees don’t add up further into conveyancing process.