When purchasing a property, many buyers focus solely on the deposit and mortgage costs, only to be surprised by additional expenses called "disbursements" that appear on their conveyancing bill. These necessary payments can add significantly to your overall moving costs but are often overlooked during initial budgeting.
This comprehensive guide breaks down exactly what disbursements are, which ones you'll encounter during your property purchase, and why they're essential to the home buying process.
What is a disbursement in conveyancing?
A disbursement is a payment made from a dedicated fund. In conveyancing, disbursements are payments your solicitor makes to third-party organisations on your behalf, with reimbursement sought from you at a later stage.
It's important to understand that legal fees (the cost of your conveyancing solicitor's time) are entirely different from disbursements (costs payable to external organisations). At Homeward Legal, we ensure you're aware of all potential disbursements upfront—there will be no surprises on your final bill.
Disbursements vs. legal fees: understanding the diffference
When reviewing your conveyancing costs, it's essential to understand the distinction between legal fees and disbursements:
- Legal fees cover your solicitor's professional time, expertise, and work handling your property purchase.
- Disbursements are payments to third-party organisations that your solicitor makes on your behalf.
This distinction is particularly significant if your purchase falls through. At Homeward Legal, our "No Completion, No Fee" guarantee means you won't pay legal fees if your transaction doesn't complete. However, you'll still be responsible for any disbursements already paid to third parties on your behalf.
Buying a property involves numerous disbursements - significantly more than when selling a property. These necessary payments ensure all aspects of your purchase are thoroughly investigated and legally sound.
If you're also selling a property, view our guide to seller's disbursements.
How disbursements work on your conveyancing bill
Understanding your financial obligations regarding the final legal bill gives you insight into the conveyancing process and explains why some steps take considerable time to complete.
Homeward Legal guarantees that whatever you're quoted for legal fees at the start is exactly what you'll be billed at completion. We also offer a "no completion, no fee" guarantee, meaning you won't pay any legal fees if your transaction doesn't complete.
Important note: This guarantee doesn't mean you won't pay anything if the transaction stops. If third-party work has been initiated, your solicitor will have paid for these disbursements on your behalf and will need to charge you for costs incurred up to that point.
Essential disbursements when buying a home
Many third-party services are straightforward in purpose and familiar to experienced home-movers. However, understanding the details behind these disbursements helps you appreciate their importance in the process.
Identification verification
Your solicitor must verify your identity as part of anti-fraud and anti-money-laundering measures. This confirms your identification, your financial status, and your ability to legally fund the transaction.
Required documentation includes photographic ID (passport/driving licence) and two documents linking your name to your current address (utility bills, bank statements, or HMRC letters less than 12 months old).
Verification can be done in-person or online. Online verification (which incurs a fee as a disbursement) checks your information against official records but may fail if you're new to your address, not on the electoral roll, don't pay UK tax, or live overseas.
Local authority search
This essential information request comes from the local council governing the property's area. While not mandatory, these searches are strongly recommended and typically required by mortgage lenders.
Key information provided includes planning history, building control adherence, property covenants, rights of way, local restrictions, Tree Preservation Orders, and planned infrastructure projects.
Due to the comprehensive nature of this search, it often takes the longest to complete. Your Homeward Legal solicitor will initiate this search immediately. For urgent cases, fast-tracking is available for an additional fee. Both standard and expedited search fees are disbursements.
Discover what local authority searches reveal about a property
Water and drainage search
This inquiry to the local utility provider examines water and sewerage arrangements. Most mortgage providers require this to confirm the property is fully habitable.
The search covers mains water supply routes, responsibility boundaries between utility companies and homeowners, waste water management, sewer locations, and water quality information.
Find out more about water and drainage searches
Environmental search
Environmental searches are typically required by lenders before approving mortgages. They identify potential health hazards and environmental issues affecting the property.
Key areas examined include contaminated land, proximity to waste management facilities, flood risk, radon gas levels, and air quality.
For high-risk properties, your solicitor may recommend additional specialist reports (flood assessment, radon testing, subsidence reports, mining surveys, or invasive plant assessments), each representing a separate disbursement.
Understand environmental searches and their importance
Chancel search
Dating back to feudal times, some properties built on former church lands may carry an obligation to contribute to church repairs.
Even if current searches show no obligations, future changes could create liability. Inexpensive insurance is available to protect you permanently from chancel repair costs, which represents a separate disbursement beyond the search itself.
Common disbursements summary
Disbursement type | Purpose | Typical cost* |
ID Verification | Anti-fraud compliance | £5-20 |
Local Authority Search | Property history and restrictions | £100-250 |
Water & Drainage Search | Utility connections and responsibilities | £50-80 |
Environmental Search | Contamination and hazard assessment | £50-100 |
Chancel Search | Historical church repair liability | £20-25 |
Land Registry Fee | Property ownership transfer | £20-910 |
Stamp Duty | Property purchase tax | Variable |
Insurance Policies | Protection against various risks | £20-200 |
*Costs vary by location, property value, and specific circumstances
Choose Homeward legal for your conyancing needs
Homeward Legal provides expert guidance through each stage of the process, explaining what's happening, why, and your role. Our conveyancers are well-versed in all aspects of the conveyancing process, delivering quality service at competitive rates.
Call to get your conveyancing quote started, or to discuss your home buying or selling plans with our experts.
Frequently asked questions about disbursements
What is the difference between disbursements and legal fees?
Legal fees cover your solicitor's time and expertise, while disbursements are payments to third parties made by your solicitor on your behalf.
How much do disbursements cost when buying a house?
Disbursement costs vary depending on property location, value, and specific circumstances. Local authority searches typically range from £100-£200, environmental searches £50-£100, and Land Registry fees depend on property value. Stamp Duty varies significantly based on property price and buyer circumstances.
Do I have to pay for disbursements if my house purchase falls through?
Yes, you'll need to pay for any disbursements already incurred, even if the transaction doesn't complete. Homeward Legal's "no completion, no fee" guarantee covers legal fees but not third-party disbursements already paid.
When do I pay disbursements when buying a house?
Some disbursements are paid upfront or during the conveyancing process, while others are settled at completion. Your solicitor will advise you on the timing of payments.
Which disbursements are mandatory when buying a property?
Land Registry fees and Stamp Duty (if applicable) are mandatory. Most mortgage lenders also require local authority, water and drainage, and environmental searches. Your solicitor will advise on requirements for your specific transaction.