skip to Main Content
Open 9AM - 5PM - Monday to Friday info@aaholmes.co.uk 01386 858107

Costs Estimate

Before you instruct us to act on your behalf in your conveyancing transaction, we will provide you with our Cost Estimate based on the information we have at the time. Should the information change since the issuing of the Cost Estimate and or anything occurs during the course of the transaction that was not foreseen at the time of the making of the initial Cost Estimate, it may be necessary to revise the Estimate.

Conveyancing charges can sometimes be complex and have a number of fees and variables contained within them. This guide hopes to give you a detailed explanation of these fees, what they are for and why they are important.

Conveyancing fees are broken down into two parts:

Legal fees (Professional charges) and disbursements.

The legal fees (professional charges) are the cost the solicitor charges for his or her time involved. VAT currently at 20% is added to the solicitor charges. The disbursements are fixed fees associated with the transaction incurred by the solicitor that are paid on your behalf to third parties.

Legal Fees

The legal fees are the biggest variable between estimates or quotes as this takes into account the individual circumstances of the transaction and what you are looking to achieve. At A A Holmes we use a sliding scale dependant on the sale or purchase price as this is the most cost-effective option of providing a fair estimate for the work involved.

The Basic Conveyancing fee incorporates the charge to be made by A A Holmes in relation to the standard work required in a conveyancing transaction. See the FAQs section for details of the standard work carried out.

Supplemental Legal Fees

A supplemental legal fee will be added to the Basic Conveyancing Fee to reflect the additional work incurred that has not been taken into account in the Basic Conveyancing fee.

In respect of all transactions (sale, purchase, and re-mortgage):

Archiving fee – fee for storing your file after the completion of your transaction.
Bank transfer handling fee – the fee for sending funds by electronic transfer (including the cost of the bank transfer and our administrative cost for dealing with the bank transfer.

Sale Supplemental Fees

Mortgaged Property Supplement – Liaising with the Lender and processing the redemption of the mortgage
Leasehold Property Supplement – Where the property is a leasehold property, the fee for liaising with the Freeholder and or their agents in obtaining their standard management information and raising enquiries
Management Company Supplement – Where the property is a freehold property but subject to managed area service charges, the fee is for liaising with the Management Company in obtaining further information.
Solar Panels Supplement – our fee for dealing with issues relating to Solar Panels affecting the property, particularly where the roof is subject to a lease

Purchase Supplemental Fees

Mortgaged Property Supplement – Fee charged for liaising with the Lender, including reporting to the client on the mortgage offer, complying with conditions and arranging the draw down the mortgage funds
Leasehold Property Supplement – Fee for dealing with the additional work including, considering the lease, raising enquiries, reporting on the lease, and dealing with post completion notices with the Freeholder
Newbuild Supplement – Fee for dealing with the additional contract papers including planning issues, management provisions, new build warranty and transferee covenants
Help to Buy Isa administration fee – Obtaining the ISA bonus under the HTB ISA scheme
Help to Buy Loan Supplement – fee for liaising with the Lender, reporting to the client as to the Loan provisions and drawing down of funds
SDLT return filing Supplement – our fee for completing and submitting the return to HMRC to include arranging payment due
Third Party source of funding Supplement – fee for verifying the source of funding from a third party to comply with anti-money laundering regulations
Solar Panels Supplement – fee charged for the additional work where the property is affected by solar panels particularly where the roof is subject to a lease

In the event that additional work is undertaken by ourselves which cannot effectively be described as falling within one of the above mentioned additional fee categories, additional conveyancing charges will be calculated at an hourly rate detailed in our terms and conditions of business with our Client Care Letter. During the course of the transaction, we will endeavour to provide you with information in advance of any additional charges that may be levied.

Disbursements

Disbursement are the costs incurred by us on your behalf. The disbursements are relatively similar regardless of your choice of solicitor as they are usually a fixed fee. The disbursements incurred will depend on whether you are selling, buying or re-mortgaging.

In respect of all transactions:

Electronic ID checker – we are required by the anti-money laundering regulations to verify our clients and that of any third party gifting monies towards a purchase property. This is the fee charged by the third party identity verification service provider

Sale Disbursements

Land Registry Office Copies – These are obtained from the Land Registry to prove the seller’s title as well as obtaining a copy of the title documents to make up the contract pack to be provided to the buyer’s conveyancer.

Leasehold Information Management packs – where the property is leasehold, these are obtained from the Freeholder or their managing agents, and the packs provide information as to service charges, rent, accounts, works to be carried out etc…. The pack price will vary.

Indemnity insurance policies – where the buyer require the seller to protect them from future liability e.g. for the lack of planning consent, defective title issues. The premium will vary according to the insured risk and value of the property.

Purchase Disbursements

Standard Search Pack – (Drainage, Environmental and Local Authority)

These are the normal searches undertaken as part of standard conveyance. The searches are designed to highlight any important information about the property and the surrounding area. The drainage search ensures that the property is connected to surface water and foul water sewers. The environmental search outlines if there is any contamination in close proximity to the property and the local search highlights if there are any planning permissions for work undertaken on the property or if there are any local council plans that may affect your enjoyment of the property.

Our search provider also include a chancel repair indemnity policy within the pack. This is an insurance policy to insure against the risk of chancel repair liability. Chancel Liability is a legal obligation on some property owners in England and Wales to pay for certain repairs to the local parish church. Please note that part of the search pack is subject to VAT due to the search provider.

Special local specific searches:

These searches are location specific and, depending on where the property that you are purchasing is located, these may not be required at all. You will be advised at the point of instruction.

Bankruptcy and pre-completion land registry searches

These searches are made after exchange of contracts to make sure that nothing has changed with regard to the property or your ability to purchase the property.

Land Registration Fee

This is a fixed cost that will depend on the purchase price of the property. There are two tables of fees depending on the interest being registered at HM Land Registry, whether for the registration of an existing whole title, or creating a new title out of an existing title or out of a property yet to be registered at the Land Registry. This is a payment to HM Land Registry for updating the records they hold about the property you are buying and to register you as the new owner and any mortgage.

Stamp Duty

This is a tax based on the purchase price of the property in question. Other factors which may affect the amount of stamp duty – if the property is an additional property, if it is a first purchase or a shared ownership lease property. The money accrues to HM Revenue & Customs. The HMRC website also has more useful information in this regard.

Indemnity policies

Where it is necessary to protect you from future liability e.g. for the lack of planning consent, defective title issues. The premium will vary according to the insured risk and value of the property.

Additional disbursements for Leasehold Properties

  • Notice of Transfer and or Mortgage Fee – payable to the Freeholder to notify them of your ownership and any mortgage affecting the property
  • Deed of Covenant fee – this is charged by the Freeholder and relates to an agreement by you to observe the covenants in the lease
  • Certificate of Compliance – this is a fee paid to the Freeholder for them to confirm that the terms of the Lease has been complied with to remove any restriction on the registered title

It is always difficult to foresee every single disbursement that could arise in the conveyancing process. However, it is always prudent to be aware of expenses such as Indemnity Insurance and possible fees for replacement certificates for work undertaken at the property. We will advise you should additional disbursements arise. Please note that any estimate of disbursements provided by us may vary from time to time.

Illustrative Estimates

The following are illustrations which will help to guide you as to what sort of fees would be included depending on the circumstances. Please contact us for an estimate that is tailored to your specific circumstances.

Leasehold Sale by couple, no mortgage

Price: £280,000

On the above information, we expect our charges to be:-

Our fees – Basic conveyancing fee & leasehold property fee £1,100.00
File Storage Fee £25.00
Our Fee For Dealing with Bank Transfer £30.00
Our Fees £1,155.00

In addition, we will have to make a number of payments to government and others including (at present rates):-

Electronic ID Check x 2 £15.00
HMLR Official Copies of Leasehold Title Register £3.00
HMLR Official Copy of Freehold Title £3.00
HMLR Official Copy of Freehold Title Plan £3.00
HMLR Official Copy of Leasehold Title Plan £3.00
HMLR Official Copy of Title Document £3.00
Freeholder Management Information Pack estimated £400.00
Other Payments £430.00
  SUMMARY  
  Our Fees £1,155.00
  Other Payments £430.00
  VAT on Fees £231.00
  TOTAL £1,816.00

Freehold Purchase with mortgage by a couple with third party gift

Price: £315,000

On the above information, we expect our charges to be:-

Basic conveyancing fee £1,025.00
File Storage Fee £25.00
Mortgaged Property Fee £175.00
Our Fee For Dealing with Bank Transfer £30.00
3rd Party Source of Funding fee £50.00
SDLT return filing fee on your purchase £75.00
Our Fees £1,380.00

In addition, we will have to make a number of payments to government and others including (at present rates):-

Electronic ID Check of each client (£6.00 each) £15.00
Electronic ID check of 3rd party gifting £7.50
HM Land Charges Bankruptcy Search (£2.00 each) £4.00
HM Land Charges Title Search Fee on your purchase £3.00
Land Registry fee on your purchase £135.00
Move Reports Search Pack on your purchase £192.40
Stamp Duty Land Tax on purchase £5,750.00
Other Payments £6,106.90
  SUMMARY  
  Our Fees £1,380.00
  Other Payments £6,106.90
  VAT on Fees £276.00
  TOTAL £7,762.90

Remortgage – Freehold property with existing mortgage

New mortgage amount: £90,000

On the above information, we expect our charges to be:-

Our Basic Conveyancing fees £600.00
File Storage Fee £25.00
Fee for dealing with Bank Transfer – Redemption  £30.00
Our Fee for Dealing with Bank Transfer of Remortgage funds £30.00
Our Fee for Dealing with your existing lender £75.00
Our Fees £760.00

In addition, we will have to make a number of payments to government and others including (at present rates):-

Electronic ID Check x 2 £15.00
Land Registry fee £60.00
Land Registry Fee for Bankruptcy Search (£2 each) £2.00
Land Registry Fee For Copy Title Document £3.00
Land Registry Fee For copy Title Plan £3.00
Land Registry Fee For copy Title Register £3.00
Land Registry Fee for Pre completion search £3.00
Move Report Searches £192.40
Other Payments £281.40
SUMMARY
Our Fees £760.00
Other Payments £281.40
VAT on Fees £152.00
TOTAL £1,1193.40

Please NOTE that the total amount of fees, VAT, stamp duty and other payments may be subject to alteration if the rates are changed after 6 December 2018