Understanding Costs and Quotes given by Conveyancers

If you are looking for a conveyancer online, the best way to go about it is to collect quotes from a number of conveyancers and then compare them with each other. There are different parts of a quote which you will need to compare, and these are described in detail in the following paragraphs.

1. The basic Solicitor’s fee

This is the payment made to the solicitor in exchange for their time in processing your transaction. It varies between firs, depending on the level of expertise, the experience of the lawyer etc., with a spread of more than £500 between the lowest and highest. In the UK, conveyancers charge for their services in the following ways.

• On a fixed rate basis, though very rarely
• On a percentage scale basis linked to the value of the property being bought or sold – most common
• On an hourly basis – relatively common

You want to avoid the third option at all costs.

2. Disbursements

Apart from the conveyancing fees charged by the solicitor for their services, there are payments that will be made by the solicitor to other parties in the course of conveyancing, which are called disbursements. These payments should not be significantly different from one conveyancer to the next, since they are administrative/fixed charges.

At this point, it’s important to mention that there are some conveyancers who may try to earn more buy inventing disbursements you should not be typically paying for if you’re acquiring business or commercial property. Our site does its best to ensure your interests are safeguarded, but you also need to carefully assess your quotes.

First, be careful about quotes that don’t itemize your disbursements, and therefore seem ultra-cheap. Ask for a detailed list with all disbursements being itemized before instructing a conveyancer. Look through every item on the list and in the fine print to ensure you have the full picture before signing up.

In order to know what charges are considered fake, you should know the real charges which qualify as disbursements, and these are given below for sellers. VAT is applicable to all charges.

• Basic solicitors fee – (£300 – 1200) Leasehold properties will cost more since they are more involving
• Land Registry Office Checks – (£4 – 8) to confirm the registered titleholder
• Telegraphic Transfer Charges – (£20 – 30) only applicable to clients redeeming more than £60,000 in mortgage(s).

The quote/cost breakdown for a buyer includes the above charges with the following extras.

• Bankruptcy search – (£2 – 4) particularly if buying with a mortgage
• Local authority search – (£100 – 200) should include an exact figure depending on the Borough. You’ll need to give the postal code for the commercial property you’re buying to determine the exact cost
• Drainage search – (£30 – 40) to check whether the property is properly connected to fresh water supply and drainage sewers
• Chancel repair liability check – (£10) to check whether you are supposed to pay for the upkeep of your local church parish
• Environmental search – (£30 – 35) looking for evidence of contamination in your immediate surroundings
• Local search (location-specific) – (£40 – 250) these may not be included at the time of your online comparison search since they depend on the exact location of the property you’re going to buy e.g. limestone, coal, China Clay and Cheshire bring mining.
• Land registration fee – (£40 – 700) set on a percentage scale according to the price of the property being bought
• Telegraphic transfer fee – (£20 – 30) will be charged by your bank to cover the cost of sending money to the seller’s conveyancer
• Stamp duty – percentage of the value of the property paid to the Inland Revenue

Anything above these costs should be covered in the solicitor’s basic fee, or it should be completely itemized so that you can look it up.

from http://monalisaofblogging.com/understanding-costs-and-quotes-given-by-conveyancers