Whether you are buying, selling or remortgaging your property, your conveyancer will usually have to pay fees to various third parties on your behalf, including the UK Government. These fees are known as Disbursements.
This page will cover the following topics about conveyancing disbursements:
- What is a Conveyancing Disbursement?
- What are Conveyancing Disbursements when Selling a House?
- What are Conveyancing Disbursements when Buying a House?
- When do I pay for Conveyancing Disbursements?
What is a Conveyancing Disbursement?
The definition of a disbursement is a payment that has to be made to a third party for a service provided or for a statutory required action on your behalf.
You will need to pay disbursements whether you are buying, selling or remortgaging a property in the UK. Disbursements are always higher when buying a property. If you have received a conveyancing quotation that looks too cheap or does not detail any disbursements, then be very careful and cautious, as these can soon add up. Your conveyancer or solicitor should be able to be provide you with a full estimated disbursements and conveyancing costs, including their legal fees for handling your move.
When you are trying to budget for moving home or calculating the cost of moving home, it's important that you understand the detail that is provided inside your conveyancing quote and to make sure that it's an all inclusive fixed fee conveyancing quote, including all of your estimated disbursements!
What are Conveyancing Disbursements when Selling a House?
When you are selling a house or property in the UK, these are the typical conveyancing disbursements you should expect to see detailed in your conveyancing quotation:
Bankruptcy Searches - Between £2 - £5
Your conveyancer will carry out a search against the names of all sellers in the Land Charges register. This search will reveal if any of them are currently bankrupt, are an un-discharged bankrupt or are about to be made bankrupt by virtue of any pending court actions.
Office Copies & Title Plan (Official Land Registry Copies) - Between £6 - £10
Your solicitor will obtain an official copy of your title deeds / title plan from HM Land Registry. These documents confirm that you are the legal owner of the property you wish to sell.
ID Check / AML Checks - Between £5 - £15
Due to Anti Money Laundering (AML) Regulations, your solicitor will need to verify the identity of anyone involved in the sale of your property. These days, most of these checks are conducted online, but you will be required to provide proof of your ID usually in the form of your passport, driving license or something similar.
Telegraphic Transfer Fee (TT Fee) - Between £15 - £40
Once your property sale has been completed, your solicitor will be responsible for the electronic transfer of your sale proceeds, to your designated and verified bank account.
What are Conveyancing Disbursements when Buying a House?
When you are buying a house or property in the UK, these are the typical conveyancing disbursements you should expect to see detailed in your conveyancing quotation:
Bankruptcy Searches - Between £2 - £5
When using a mortgage to purchase a property, your lender will usually insist that your conveyancer will carries out searches against the names of all buyers in the Land Charges register. This search will reveal if any of them are currently bankrupt, are an un-discharged bankrupt or are about to be made bankrupt by virtue of any pending court actions.
Office Copies & Title Plan (Official Land Registry Copies) - Between £6 - £10
Your solicitor will obtain an official copy of the title deeds / title plan from HM Land Registry. These documents help to confirm details on the relevant property your looking to purchase and can assist when ordering required searches for the property.
ID Check / AML Checks - Between £5 - £15
Due to Anti Money Laundering (AML) Regulations, your solicitor will need to verify the identity of anyone involved in the purchase of a property. These days, most of these checks are conducted online, but you will be required to provide proof of your ID usually in the form of your passport, driving license or something similar.
Telegraphic Transfer Fee (TT Fee) - Between £15 - £40
Your solicitor will be responsible for the electronic transfer of any money from yourelf to the lender and from the mortgage lender, to the seller's solicitors / conveyancing firm.
Property Searches - Between £180 - £350
Your solicitor will conduct searches relating to the property you are looking to purchase. These searches are a combination of environmental reports, flood reports, water / draianage reports, local authority reports and chancel liablity checks. Most firms now offer something called a "Conveyancing Search Pack" that covers the core searches and requirements for your mortgage lender.
Properties in certain areas of the country will require additional searches such as mining checks, hazard checks and flooding checks.
When do I pay for Conveyancing Disbursements?
Some conveyancing disbursements are payable upon instructing your solicitor or conveyancer to handle your case. Your conveyancer will often ask for money on account to cover these upfront disbursements and costs to setting up your conveyancing file. These are typically things such as:
- ID Checks
- Bankruptcy Searches / AML Checks
- Conveyancing Searches (Often known as a Conveyancing Search Pack)
Towards the end of the conveyancing process and prior to completion, your conveyancer will then ask for their legal fees to be paid, along with any other remaining disbursements. These are typically:
- HM Land Registry Fees
- HM Stamp Duty Land Tax (SDLT)
- Insurance / Indemnity Policies
