Are you ready to make a move in 2020? Is this the year you want to buy a new home or sell up for a new life? Getting a clear idea of how much average conveyancing fees will cost in 2020 is your starting point.
The new year has got off to a flying start with the biggest increase so far in property asking prices.
So, it’s probably the ideal time to start your own preparation for a home purchase or sale.
EXPLAINING LEGAL FEES
The first thing you want to have is an idea of how much your legal fees will cost. However, conveyancing costs will vary depending on the value of the property involved. So that means we can only give you an estimate that will let you plan your move.
The good news is that Homeward Legal is always transparent about how much conveyancing fees will be.
The quote we give you is the price you will pay: no hidden extras, no unexpected charges or costs tagged on at the end.
ADDITIONAL COSTS THAT MUST BE PAID
Our team will explain in detail the external charges, fees and duties that your conveyancing solicitor MUST pay on your behalf to complete your sale or purchase transaction.
It’s important to know up front that your solicitor has no control over these costs, and they will be included in your final bill.
TRANSPARENCY ON FEES GUARANTEED
Law firms who are regulated by the Solicitors Regulatory Authority (SRA) must publish information on the fees they charge for services such as conveyancing.
This transparency gives buyers and sellers a clearer idea of their costs from the outset.
Fortunately for clients of Homeward Legal, that transparency is baked into our service. And we only work with SRA-regulated solicitors.
ARE DISBURSEMENTS INCLUDED?
While you will most certainly find very cheap quotes for sale and purchase conveyancing online, we can testify that cheap is definitely not always best.
Many online quotes will not include the essential disbursements that you must pay unlike a conveyancing quote from Homeward Legal, which always includes all fees.
Any final bill will also have to include 20 percent VAT, so don’t forget to add that on, too.
WHAT DO AVERAGE CONVEYANCING FEES INCLUDE?
Here are some of the typical charges included in a conveyancing bill:
- Solicitors’ fees
- Surveyor fees
- Lenders’ fees
- Stamp Duty Land Tax (Land Transaction Tax in Wales)
- Land Registry Fees
- Local Authority Searches
- Electronic bank transfer fee
- Management pack for leasehold properties
- Estate agent costs
- Removal costs
Always read the small print on all quotes for any hidden charges.
FINDING BEST QUOTES FOR CONVEYANCING
According to the latest house price index from the Halifax, the average price of a property in the UK is £238,963. We rounded that up to £239,000 to get our purchase price in quotes for a property transaction.
There are a number of online comparison sites for conveyancing fees. We used the Solicitor Finder tool to get quotes for conveyancing costs on a freehold property valued at £239,000.
The cheapest quote there came in at £558 including VAT with all disbursements extra.
Those disbursements include online ID verification, bankruptcy search fees, Land Registry fees, all searches, registering the title and Stamp Duty Land Tax. The disbursements total £511 and stamp duty is £2280, bringing the total bill to £3349.
For a purchase on a leasehold property, our cheapest quote was £660 with disbursements coming in at £511. Stamp Duty Land Tax would be £3451.
HOMEWARD LEGAL’S AVERAGE CONVEYANCING FEES
To get a better idea of average conveyancing fees for 2020 through Homeward Legal, we used our own instant quote service, again based on buying freehold and leasehold property valued at £239,000.
For a freehold purchase, buying with a mortgage, our quote was £660, which includes the fee for acting for the mortgage lender – another additional cost to consider. Add in disbursements at £511 and stamp duty at £2280 and we got a final bill of £3451.
A leasehold purchase brings solicitor fees of £840, which includes a leasehold supplement fee because of the additional work involved. The total bill, including disbursements and stamp duty, would be £3631.
DON’T FORGET STAMP DUTY
Remember, first-time buyers in England don’t pay stamp duty on a property valued at under £300,000.
The threshold for the Land Transaction Tax (formerly stamp duty) in Wales is £180,000. As a first-time buyer pays on average around £140,000 for a home there, they are unlikely to have to pay LTT.
The threshold for stamp duty in England is £125,000, meaning everyone who buys land or property above that value will pay the land tax on a sliding scale.
WHY CHEAPEST ISN’T ALWAYS BEST
As we’ve mentioned, the cheapest option isn’t necessarily the best or the most economical in the long run.
Buying property can often throw up unexpected problems and complications. Better to have an expert legal professional on your side to negotiate these hurdles.
Homeward Legal’s nationwide panel includes top property law firms across England and Wales who have the knowledge and experience to deal with any problems.
Get an instant, no-obligation quote from Homeward Legal now. You can also talk to our friendly team on 0800 038 6699 to find out what conveyancing fees will cost in 2020.
We’re open seven days and until 8 pm on weekdays for your convenience.