Conveyancing Costs Explained: What to Look Out for When Buying or Selling a Property
While most people are aware of the standard conveyancing fees, there are some additional costs that can catch buyers and sellers off guard during the conveyancing process. To ensure a smooth and well-prepared property transaction, it's essential to be aware of these potential additional expenses.
In this blog post, we'll explore the additional costs of conveyancing and how you can avoid any surprises along the way. For more information about conveyancing read our blog.
1. Searches
Conveyancers typically include standard searches like local authority and environmental searches in their fees. However, certain properties may require additional or unforeseen searches based on their location or specific circumstances. These extra searches could incur additional costs, so it's essential to discuss with your conveyancer if any supplementary searches are necessary.
2. Leasehold Properties
If you're dealing with a leasehold property, there may be additional costs associated with the lease. These costs may include ground rent and service charges, which you should be aware of before committing to the purchase. Your conveyancer should carefully review the lease and provide you with information on these expenses.
3. Stamp Duty Land Tax (SDLT)
SDLT is a well-known cost in property transactions, but it can still be considered a hidden cost since the exact amount depends on the property's value and the buyer's circumstances. Make sure to consult with your conveyancer to calculate the SDLT applicable to your purchase accurately.
4. Property Survey
While not directly related to the conveyancer's fees, obtaining a property survey is a crucial investment. Surveys can identify potential issues with the property that may not be immediately visible, such as structural defects or damp problems. Addressing these issues early on can save you from significant expenses in the future.
5. Mortgage Fees
If you're obtaining a mortgage to finance the property purchase, be aware that there may be various fees associated with the mortgage application. These fees could include arrangement fees, valuation fees, and mortgage broker fees. Discuss these costs with your lender and mortgage broker to understand the full financial implications.
6. Transfer of Ownership Costs
In some cases, additional costs may arise during the transfer of ownership. These costs could be related to dealing with missing or defective documents, obtaining indemnity insurance to protect against potential risks, or resolving any title defects. Your conveyancer can advise you on these potential costs and how to address them.
7. Chancel Repair Liability
While relatively rare, some properties may have an ancient liability for repairs to the local parish church, known as chancel repair liability. This could result in unexpected costs, so it's essential to check for this potential liability during the conveyancing process.
8. Bank Transfer Fees
Various bank transfers may be required throughout the conveyancing process, such as transferring the deposit or the balance of the purchase price. These bank transfer fees can add up, so it's wise to be aware of them beforehand.
Step 9: Post-Completion
After completion, the buyer's conveyancer will handle the payment of stamp duty land tax (if applicable) and register the change of ownership with the Land Registry. This registration is essential to officially recognise the buyer's ownership rights.
When selecting a conveyancer, consider more than just their fees. Look for a reputable and experienced professional who can guide you through the process and help you navigate potential hidden costs effectively. A skilled conveyancer can be your invaluable ally in securing your dream property without any financial surprises along the way.
