When 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.